Unless you have a contract which stipulates late payment interest as part of your contract, I would encourage any business to optimise the government legislation which applies interest and late payment clauses on top of your outstanding invoices.
Unless your contracts expressly permit a specific type of structure – you should go with that and/or tweak your clauses so that it reflects that of the Late Payment of Commercial Debts and Interest Act 1998.
Even if you don’t get this paid, it acts as a deterrent for would-be late payers.
For further information, please click on the following link, which will help you with calculating this: UK Late Payment Interest Calculator (dontpaylate.uk)
The clause adds an additional £40, £70, or £100, depending on the outstanding invoice value, which you can add on top of your late payment interest.
My question to you is, what are you doing to tackle those outstanding debtors further?
For further information on how I can help your organisation improve on these outstanding debt balances, please do not hesitate to contact me.