# @kcaaccountants on Instagram

- **Type:** Image
- **Original URL:** https://www.instagram.com/p/B75_IC1lxP_
- **Gondola URL:** https://gondola.cc/posts/10052965-kcaaccountants-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/2b3491b1fc.jpg
- **Posted:** 2020-01-29T13:56:49.000+00:00
- **Account Owner:** KCA Accountants (@KCAaccountants) — https://gondola.cc/KCAaccountants

## Caption

What's the best way to deal with late payments?
Almost 50,000 small firms go out of business each year in the UK, due to late payments. So what action can you take if slow payers are starving your firm of cash? The IoD’s Information and Advisory Service (IAS) offers the following guidance.
✽ Find out why the customer isn't paying.
Is it a dispute over the good/services provided? If so, resolve it quickly. Is it a cash flow problem with the customer? If so, agree an instalment plan and get it in writing. If the customer has no good reason, you have three options: engage debt collectors; issue a statutory demand (a written warning that you may litigate if the debt is not settled or no acceptable alternative solution is reached); or, for debts under £10,000, go to court using the small-claims track.
✽ Can I charge interest?
By law, you can charge the statutory interest rate on a late payment: eight per cent a year plus the Bank of England’s base rate for business-to-business transactions. In addition to recovering interest, you are entitled to charge a fixed sum for recovering the debt. This is £40 per invoice for debts of up to £999.99; £70 per invoice for debts of between £1,000 and £9,999.99; and £100 for debts of £10,000 or more.
✽ Limit the chances of late payments in the future.
Agree with each customer, in advance, the terms of the transaction and submit accurate invoices in good time. Check out if the business has signed up to the Prompt Payment Code (http://www.promptpaymentcode.org.uk/). It means they have a commitment to pay suppliers promptly and according to terms laid out and there's a complaints and disputes system in place that could help you. And lastly, what if the company that owes you goes out of business? Well, it's possible to protect your business against the risk of debtor insolvency by taking out credit insurance.
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information source: @directormagazine 📸doucefleur on @adobestock
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## Tags

accountancy, smallbusinesssupport, shopindependent, accoutancyadvice, independentbusiness, smesupport, smeadvice, essexaccountants, latepayingclients, smallbusinessaccounting, shoplocal, latepaymentissues, getpaidontime, smallbusinessadvice

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