Late payment of commercial debts: new developments of interest
The Late Payment of Commercial Debts Regulations 2013 comes into force on 16 March 2013, affecting commercial contracts for the supply of goods or services entered into after that date. In particular, the regulations are intended to encourage a more supplier-friendly approach to payment terms.
Under the Late Payment of Commercial Debt (Interest) Act 1998, parties to relevant contracts are entitled to recover interest on any amounts owing to them that remain outstanding for certain specified periods of time. This can be summarised as follows:
- where the parties have not agreed a payment period for invoices, a 30-day period is permitted after receipt of the goods or services and/or invoice for the goods or services (whichever is later) following which the creditor is entitled to recover interest
- where the parties have agreed a payment period for invoices, interest is not recoverable until after that agreed period has expired
As such, debtors are currently free to agree lengthy payment terms with creditors during which interest would not be recoverable on the amount due.
If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
The law provides that if you would like to move a child from their main country of residence, the consent of the other person with parental rights should be obtained first.
There are now a range of options for resolving a dispute between a consumer and a trader.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…