With just 18 months elapsed since the late payment legislation was completely implemented in the UK, the Better Payment Practice Group (BPPG) reports strong early signs that it is having a positive effect in helping firms collect the cash that is owed to them.
In a recent survey conducted by the BPPG, 20% of the 856 businesses questioned have successfully claimed for interest and compensation for late payment. In addition, a massive 68% of the 730 businesses questioned in an earlier survey by the group believe that the legislation is an important deterrent to late payment.
Colin Gibson, member of the BPPG and general secretary of the Union of Independent Companies, responded: "Even though the legislation is a voluntary tool, these are important early indications that this is a valued and effective credit management tool for business. We hope to see a steady increase in firms promoting their intention to use their right to interest if credit terms are breached...
