Small Business Minister Nigel Griffiths today announced a new package of measures to help combat late payment of bills - a problem that's estimated to cost small businesses nearly Ј7 billion at any one time.
For the first time, firms owed money will be able to claim up to Ј100 in debt recovery costs for each overdue bill, on top of claiming interest on the amount owed.
Mr Griffiths said, "We are using a European Directive to give positive benefits to
millions of UK businesses in three key ways:
simplifying the calculation of the interest rate for late payment by fixing the rate for a six-month period - rather than fluctuating monthly as at present;
allowing representative bodies to challenge in court grossly unfair contractual terms on behalf of small businesses; and
extending the late payment legislation to include businesses of all sizes and the public sector - at present only small firms can claim interest on debt."
