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Three cheers for Late Payment legislation!

Our FTSE 250 IT infrastructure supplier asked us to recover outstanding invoices for £334,000, ranging from two to six months beyond terms. Our client’s services were vital to the buyer, but they had cash management issues due to a restructure of their finance operations and combining of its legal entities. In discussion with the debtor’s company secretary, we agreed that no dispute existed, making early payment imperative. Failure to meet our short-term payment deadline would result in us issuing a Statutory Demand to wind-up the company, and such payment must include Late Payment of Commercial Debts Act costs and interest. Four weeks after receiving the debt from our client we received a BACS payment totalling £359,000, including our costs, and £5,000 of interest charges for our client. This outcome proves the value of Late Payment legislation and demonstrates that debt collection can be free-of-charge.

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