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Businesses Fail to Claim Interest

05/03/2010

A delay in collecting your debts could mean you don’t recover at all. The Bolton News 17th March 2010

UK businesses are taking an average of 60 days to pay bills and invoices according to a recent report by Experian and the larger the business the slower they are to pay. This creates significant cash flow difficulties for the smaller businesses down the chain of supply.

Bolton based Paul Hatton of KBL Solicitors says “I anticipate a significant number of local and national businesses will enter insolvency this year, with the result that many of their creditors will not be paid. With the economy only barely out of recession, businesses need to remain as diligent as ever with their credit control.”

Recovering debts is a daunting task for anyone but prevaricating can lead to unnecessary delay and accumulation of debt. An experienced debt solicitor will advise on the best way to recover monies owing and give you the best chance possible to make a maximum recovery from the debtor. “Many businesses do not realise that they are entitled to charge late payment interest of 8% on top of the Bank of England base rate and claim late payment compensation. Even with the base rate at an all time low, interest of 8.5% should act as a deterrent to businesses paying late. Unfortunately, not many businesses are taking advantage of their ability to impose the statutory right, with statistics showing that only roughly 25% of UK businesses apply the statutory interest and compensation” comments Paul .

KBL’s debt team are experienced in resolving all debt related issues regardless of the amount that is outstanding and the duration for which it has been due. Their extensive knowledge and years of experience has helped them to recover money owed to their clients and to help businesses avoid financial crisis.

KBL have set up a free debt recovery costs calculator to enable clients to easily determine the cost of the debt recovery process. For further information please contact Paul Hatton head of debt recovery.