Recovering the Full Cost of Late Payments: What Your Business Is Entitled To

Late payments hurt businesses, but the law is on your side. Whether you are chasing overdue invoices or unpaid rent, you are not just entitled to the amount owed and in many cases, you can also claim compensation, interest, and recovery costs.

Here’s what you need to know:

What Is Late Payment Compensation?

Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses are legally entitled to claim compensation from other businesses that pay invoices late. This applies to B2B transactions, not consumers, and covers goods or services supplied.

You can claim:

• Statutory late payment interest - 8% above the Bank of England base rate
• Fixed compensation – per invoice, depending on the value
• Reasonable recovery costs – if they exceed the fixed fee

Can I Recover My Collection Fees Too?

Yes, and this is where working with Woodside Debt Recovery can help.

Once we’ve collected the debt on your behalf, we can enforce your right to claim reasonable recovery costs, which includes our fees. That means:

• You get the full amount you are owed
• You recover the cost of instructing us
• You don’t lose out by taking action
• The debtor covers our costs once the debt is recovered, not you

What Can Be Included in a Debt Recovery Claim?

When you’re pursuing a business debt, we can include:

• The original amount owed
• Statutory interest (calculated daily)
• Fixed compensation fee per overdue invoice
• Reasonable recovery fees (our collection charges)
• Court fees if legal action is necessary

We ensure that every penny you’re entitled to is claimed, and recovered.

Why Work with Woodside Debt Recovery?

We are specialists in business-to-business and rent arrears recovery. Our approach is ethical, firm, and fully compliant with Pre-Action Protocols. Most importantly, we aim to recover your funds without damaging your commercial relationships.

• Transparent pricing
• Legal compliance assured
• Full cost recovery options
• Expert communication & negotiation

Ready to Claim What You're Owed?

If you're tired of chasing invoices and want to recover the full cost of the debt, including your time and recovery expenses, we can help.

Contact us today to speak to a debt recovery specialist.

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