My client would like to put a paragraph on their invoices explaining that late payment fees will be charged at 15%. My client doesn't give any credit terms but would she have to wait 30 days before she could start charging for late payment? Is this ok or do they have to follow the Statutory late payment of commercial debts, which is 8% above BoE base rate, starting once the debt is more then 30 days overdue?
Could anybody help me with the wording? She needs to be paid on time but doesn't want to upset her customers. I was thinking:
[client's business name] reserves the right to charge late payment interest at a rate of 15% on all outstanding debt from day 31. Interest will be calculated and charged daily.
Would payment reminder letters be a better credit control method? I wonder if I say that interest will start being charged from day 31, then all her customers will take 30 days!
Thanks in advance