BPPG announces rise in interest rate for commercial late payments
The Better Payment Practice Group (BPPG) advises businesses that the interest rate for companies wishing to apply the late payment legislation will be 12.5% for the period 1st July to 31st December 2004. For the previous period (1st January to 30th June 2004) the rate was 11.75%.

The late payment legislation provides businesses with a statutory right to claim interest and compensation on overdue commercial debts.

The late payment interest rate is set twice a year and is calculated by adding 8% to the reference rate, which is the Bank of England base rate on 30th June and 31st December. This interest rate is applicable for the ensuing six-month periods, i.e. 1st July to 31st December and 1st January to 30th June respectively.

Statutory interest on an overdue invoice can be determined by using the online calculator here on the BPPG’s website. This website also contains a wide range of credit management advice and information to help businesses prevent and overcome late payment of commercial invoices, plus a Guide to the UK’s late payment legislation.

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