Unpaid invoices between businesses are subject to the Late Payment of Commercial Debts Act 1998 — meaning you're entitled to statutory interest on top of the principal debt.
Late Payment of Commercial Debts Act 1998 — Your Additional Rights
When recovering B2B debt in the UK, you can claim statutory interest at 8% above the Bank of England base rate from the date payment was due. You're also entitled to a fixed debt recovery charge of £40–£100 and reasonable recovery costs. Your Letter Before Action will reference all applicable entitlements explicitly.
Select your situation to see the relevant legal basis, urgency level, and what your Letter Before Action will reference.
Goods or services supplied to another business, invoiced, and not paid within terms.
Urgency
High — statutory interest accruing daily
Legal Basis
Late Payment of Commercial Debts Act 1998
Commercial debt recovery isn't just a scaled-up version of chasing a personal loan. The UK legal framework for B2B debt carries specific advantages that consumer debt doesn't — and your Letter Before Action should reference them explicitly.
Statutory interest from day 1
The Late Payment of Commercial Debts Act 1998 entitles you to claim 8% above the Bank of England base rate from the date payment was due — automatically, without court proceedings.
Fixed debt recovery charges
For debts up to £999.99, you can claim an additional £40. For debts up to £9,999.99, £70. Over £10,000, £100. These are on top of your principal debt.
Credit record impact (CCJ)
A County Court Judgment against a limited company is recorded publicly and impacts their ability to obtain trade credit, finance, and certain contracts. This leverage is significant in B2B contexts.
30-day default payment terms apply
Where no payment terms were agreed in writing, UK law defaults to 30-day payment terms for B2B transactions. Debt is legally overdue after 30 days even if no invoice terms were stated.
Everything you need to pursue a B2B debt professionally and legally — referencing your full statutory entitlements.
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A recruitment agency placed candidates for a tech company. Three invoices have been outstanding for 90+ days. The client answers emails but never pays.
A wholesale supplier delivered goods to a retailer on 60-day terms. The debt is now 4 months overdue and the retailer is still trading.
A digital agency on a 3-month retainer has not received payment for the final two months. The client claims dissatisfaction but provided no written complaints.
A subcontractor completed their scope of work on a commercial fit-out. The main contractor is withholding payment citing delays caused by others.
A software company has an enterprise client who has not paid for 5 months of licence fees while continuing to use the platform.
An introducer generated a major commercial contract worth £85,000. The business paid one invoice then stopped paying the agreed commission without explanation.
Get a professional Letter Before Action for business debt — including your statutory interest entitlements — for £99. Ready to send today.
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