The Late Payment of Commercial Debts (Interest) Act 1998

The Late Payment of Commercial Debts (Interest) Act 1998 sets out rules for how and when businesses can claim interest and compensation if their invoices are paid late by other businesses. It aims to encourage timely payments by providing a standard way to calculate interest on overdue amounts and to recover debt recovery costs. The Act applies to most trade, commerce, or business transactions within the UK and ensures that creditors are compensated fairly for delays, helping improve cash flow and reduce financial risks for businesses.