The standard rate of interest is 8% above the base rate set by the Bank of England and this is applied at the start of the 6 month period. Both parties can agree on a different rate of interest, however, this should be something that is agreed on and is considered a substantial remedy and should never be forced.
In the most part this process is relatively pain free and goes without a hitch, yet sometimes it doesn’t always go to plan. You could end up under paying your staff, paying late, or perhaps overpaying your stuff.
The thing with making a phone call in order to chase debt is that it can feel a little awkward when making that initial contact. You may be concerned that you will be met with hostility, or that you may not even be spoken to you at all. The thing to remember is that you need to remain positive and polite when speaking to the debtor and never make any assumptions about why the payment is late.
An on-going late payment will not only have an impact on the cashflow of your business but also could result in ongoing operational delays too. This means that it is important to try and obtain the payment that is owing to you quickly. By dealing with a debt collection company, you will be able to find a resolution to your demands much easier and quicker.
So this might seem like a really odd question to ask but it’s surprising how many organisations that don’t have up to date records of their customers details relating to their legal entity, names of directors and who their “People with significant control” are.
