If your customer pays late, UK law allows you to do more than chase the overdue balance. Under the Late Payment of Commercial Debts (Interest) Act 1998, you have the legal right to charge statutory interest, claim a fixed compensation fee, or recover your reasonable debt collection costs.
The Credit Control Room enables you to create a legally compliant Late Payment Invoice in seconds — just enter the invoice date, amount, and payment date (if applicable), and our system does the rest.
A Late Payment Invoice reflects the true cost of late payment. It not only enforces your statutory rights — it acts as a highly effective tool in commercial credit control.
You are legally entitled to charge:
Note: You cannot claim both fixed compensation and recovery costs — only one may be applied.
The Late Payment Invoice isn’t just a compliance document — it’s a tactical credit control asset. You may use it to pressure the debtor by offering to waive or reduce the charges only if payment is made immediately.
“We are entitled to enforce these charges in full. However, if the principal amount is paid today, we may agree to reduce or cancel the late payment invoice.”
This strategy often results in faster settlements while preserving your right to enforce the full amount if necessary.
Even if the debtor pays the original invoice but ignores the Late Payment Invoice, you can issue a separate County Court claim to recover the statutory interest and compensation.
These standalone claims are rarely defended successfully. The facts are clear:
This makes enforcement straightforward — and sends a strong message that your business takes late payment seriously.
Creating a Late Payment Invoice through the Credit Control Room is a fast, compliant way to enforce your rights, apply pressure, and recover hidden costs.
Generate your Late Payment Invoice now — directly from your Credit Control Room dashboard.
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