Yes, the government are on the side of the small business with the legal right to claim interest and debt collection charges on late payment. And there is more legislation on the way.
So why isn’t it working?
Because small businesses are too scared of losing clients to USE the legislation.
But a customer who doesn’t pay is NOT a customer. Somebody takes goods from a small business without paying is a thief. So what do we call people who take services without paying? Customers!
Use the law to help collect your own debts but also to help change how small businesses are treated. Late Payment of Commercial Debts (Interest) Act 1998 calculator are here.
And a big thank you to Emma Jones OBE, now Small Business Commissioner, who kindly wrote the foreword to my second book ‘Growing by Numbers: how to scale up your business with confidence’