How to Handle Late Payments

Late customer payments can be a big deal for businesses, preventing them from operating as usual.  Restricting cash flow is a major issue with late payments, so it is important that business owners know what to do if their customers are continually paying late.

Generally speaking, if another business is late paying for goods or services, you can claim interest and debt recovery costs.  Once a payment date is agreed, it must be within 30 days for public authorities and 60 days for business transactions.  You can agree a loinger period than 60 days, but it must be deemed fair to all parties.

If there is no payment date set, the law deems a payment as late when it is more than 30 days after the customer gets the invoice, or when you deliver the goods/service.