Prompt Payment Act - what interest is charged

[gg66]

I'm self employed and have difficulty getting paid promptly from a particular client, sometimes waiting 6 months. Client then looks for a discount to pay.

I'm not looking for cr control advice but..

does anyone know what interest is chargeable to a client on invoices not paid within the agreed term - 30 days?

 

[ClubMan]

Unless otherwise specified in an agreed contract, the penalty interest rate is the European Central Bank main refinancing rate plus 7 percentage points. The ECB rates in force on 1 January and 1 July apply for the following six months in each year. Only one rate will apply to a late payment - that is the rate in force on the payment date.

 

[gg66]

Thats exactly what I'm looking for. Thanks

 

[delgirl]

Having recently started a new business, my partner and I have been having the same problem as the original poster - waiting up to 90 days to be paid for services rendered under a contract where the terms state that payment is due within 30 days of the service being provided.

If we were to use the method outlined below, we are sure our clients would not use our services again.

Can anyone recommend another more subtle way of making sure you get paid on time?