Businesses could be forfeiting significant levels of credit if they ignore new late payments legislation.
The new laws are designed to deter bad debtors by allowing businesses to claim premium rate interest on invoices unpaid for over 30 days. Creditors can also claim compensation to cover recovery costs.
Simon Emmerson of Laytons Solicitors suggests that businesses could use the new laws to encourage a reduction in debtor days and improve cashflow.
He added: "We would recommend that businesses adopt a policy of good housekeeping, that goes further than just amending contractual terms. Maintaining accuarate records of any unpaid invoices should be standard practice."
