A new package of measures to combat late payment - including allowing businesses owed money to claim up to Ј100 in debt recovery costs for time spent chasing each overdue bill - comes into force today.
Small businesses are already allowed to charge interest on late paid bills, but the right to charge compensation costs aims to make late payers think twice before they offer an excuse for not paying up.
According to the Credit Management Research Centre, typical excuses to delay payment - especially common in the summer season - include:
"The Director is away on holiday until the end of September and we can't pay until then."
Other changes will mean:
small firms will be able to ask an appropriate representative body to challenge contracts that do not provide them with a substantial remedy for late payment;
