You are entitled to statutory interest
Under the Late Payment of Commercial Debts legislation you can charge interest at the Bank of England base rate plus 8% on overdue business invoices, plus fixed compensation depending on the debt size.
Default terms if none are agreed
Where no payment terms are written, 30 days applies by default. Putting explicit terms and your interest policy on every invoice makes enforcement straightforward later.
Escalate in a structured way
Reminder, formal demand with interest applied, letter before action, then the small claims process. Most debts settle at the letter-before-action stage when it is clearly written and evidently serious.
Want this reviewed for your business?
Send us a recent bill and a consultant from our Cardiff office will tell you, honestly, whether you are paying more than you need to.