*Late fee calculator is for informational purposes only. Sterling Debt Recovery assumes no implicit or explicit liability for the use of this tool.
Late Payment Calculator for debts where the UK late payment act applies
If another business is late paying for goods or service you can claim interest, a late payment fee (per invoice) and if you pass the debt to a third party collection agency, such as Sterling, you can claim additional ‘reasonable costs for recovery’ – contact us to find out how we can recover your debt on your behalf, effectively free of charge.
If no agreement with the debtor exists, payment terms default to 30 days by statute. These terms apply from the date:
• the customer gets the invoice, or
• you deliver the goods or provide the service (if this is later)
You can agree a longer period for payments from one business to another – but if it’s longer than 60 days it must be fair to both businesses.
The calculator will allow you to calculate the interest and late payment fees that can be added to overdue debts under the UK Late Payment Act.
The Act now also allows the addition of reasonable costs in recovering a debt. This means that in the majority of cases using a debt recovery agency such as Sterling can effectively be free of charge to the client, with the debtor covering the cost of recovery.
Please note that if your terms of business include alternative late payment interest rates and charges then you should use our Advanced Late Fee Calculator.
If you wish to calculate interest on multiple invoices for the same debtor then you should find our Multi Invoice Late Fee Calculator useful.