Better Payment Practice Group Launches Online Interest Calculator

The Better Payment Practice Group (BPPG) has launched an online interest calculator on its Internet site www.payontime.co.uk as part of its ongoing campaign to help small businesses protect themselves against incidents of late payment.

By inputting a few details, small businesses can quickly and easily calculate the amount of interest they are entitled to charge on unpaid invoices under the Late Payment of Commercial Debts [Interest] Act 1998. In addition, the service includes the facility to calculate contractual interest for those business owners who negotiate their own rate of interest with their debtors.
The user-friendly service also provides a sample letter that may be used by small businesses to notify their debtors of the amount of interest due.

Peter Rowe, Director General of the Institute of Credit Management and Chairman of the BPPG comments, “Advising a debtor of the right to claim interest on late payment can be an effective method of helping businesses retrieve outstanding debts. Further impact could be made by quoting the amount of interest due to date or how much will become due in the event of late payment.

“With so many time pressures on small businesses, we anticipate that the interest calculator will prove to be an invaluable, time saving facility. ”

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