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Last updated January 2017

Credit Management

If I've agreed a credit account with you, you'll want to familiarise yourself with my credit management policy so you can keep on top of those pesky invoices and keep costs down.

The credit management process
Invoice Reminder Late Payment Fee Legal Recovery
up to 30 days up to 7 days overdue up to 14 days overdue 30+ days overdue
you can pay straight away no problem, these thing happen it's not too late to minimise costs houston, we have a problem
I will send an invoice to you for payment. If you have any questions about the invoice, get in touch and we'll sort it out. I will remind you that the invoice has not been paid and request payment within seven days or agree alternative arrangements I will issue another invoice for late fees, but I'll credit this invoice if you pay in full within seven days. I will issue a second invoice for late fees, and proceed with recovery of the overdue balance via HMCS without further notice.


Proforma Invoice

For clients without a credit account or where payment is required in advance, I'll issue a proforma invoice for some or all of the total amount. Once I receive payment a formal invoice for that amount will be raised for your records and I'll be ready to proceed with the project.

Formal Invoice

If I have agreed to offer credit facilities, you'll receive an invoice which you can still pay straight away. I'll set a payment date of 30 calendar days for credit accounts, otherwise the invoice due date is set for three days following the invoice date. Keeping to the agreed date is important if you need to continue using a credit account.

I'll normally keep you well informed of costs with quotations or project reports before producing an invoice, so there should be no unpleasant surprises. But if you have any questions about the invoice when you receive it, get in touch straight away and we'll sort it out.

Reminder

If the invoice remains unpaid after the due date, I'll send you a reminder along with statement of your account. If you aren't able to settle the account straight away then please get in touch to agree a payment date. You will need to do something within seven days to resolve the account.

You'll receive reminders via email to your delegated accounts contact starting on the due date of the invoice. These continue every day until payment is received, you let me know that payment has been sent, or if I agree to defer the due date.

Late Payment Fee

Seven days after the reminder has been sent, if we haven't already agreed a different payment date or if the new date has passed, I'll issue another invoice for late fees (see below) and send a new statement with your new account balance. The good news is that I'll credit this invoice if you pay the account balance excluding these fees within seven days of the letter.

Legal Recovery

At this point, the invoice will have been with you for for as much as two months and will be more than 30 days overdue. I'll have tried to resolve any issues with the invoice and when it will be paid, now I'm fresh out of ideas.

I'll send one more letter together with a second invoice for late payment fees, and proceed with a claim for recovery of the overdue balance shown on the statement via HMCS without further notice. 

No further late payment fees will be charged. Interest will be claimed for from the invoice date until the account settlement date, as well as any fees levied by HMCS or their agents.

Late payment fees

From January 2015 late fees are calculated using the Late Payment Directive and legislation* by the UK government. Late payment fees comprise of a fixed amount plus statutory interest on the balance. Interest and fees are calculated from the date of the invoice.

The fixed charge will be £40 below £1,000, £70 below £10,000, and £100 over £10,000, and become due every 30 days from the invoice date.

Interest is calculated daily from the invoice date at an annual rate of 8% plus the Bank of England base rate for business transactions.

*Late Payments of Commercial Debts (Interest) Act 1998, the Late Payment of Commercial Debts Regulations 2002 and the Late Payment of Commercial Debts Regulations 2013
 

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