Eight in 10 firms have not updated T&Cs to take advantage of new rules on late payment

Will Green is news editor of Supply Management
17 August 2014

☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily

18 August 2014 | Will Green

More than eight out of 10 firms have failed to update their terms and conditions to take advantage of new late payment regulations that came into force last year, a survey has revealed.

Law firm Lovetts said just 32 per cent, out of more than 100 businesses, were claiming legal recovery costs and compensation on late payments "as a matter of course", even though the ability to do so was put into law as part of the UK adopting an EU directive.

Lovetts said the findings came despite an increase in the number of bad debts and almost a quarter of firms saying the problem had worsened in the past year.

The company said lack of awareness or fear of upsetting customers may be behind the figures.

Charles Wilson, CEO of Lovetts, said: “Our survey suggests businesses are missing a major opportunity to claim compensation and reasonable costs on overdue invoices – effectively making the debt recovery free.

“Of course, what businesses may fear is that legal costs could spiral given the huge increase in court fees earlier this year, but if they implement the new regulations, many businesses could actually find most of their legal costs are covered.”

Separate research by Bacs has found a quarter of UK businesses are forced to pay their suppliers late because they in turn are waiting for payment.

 

 

LATEST
JOBS
Hounslow, Heathrow /Richmond upon Thames
Competitive salary depending on experience plus generous share award
Tails.com
Surrey
GBP50000 - GBP55000 per annum + Benefits
Bramwith Consulting
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE