Late commercial payments: charging interest and debt recovery
When a payment becomes late
You can claim interest and debt recovery costs if another business is late paying for goods or a service.
If you agree a payment date, it must usually be within 30 days for public authorities or 60 days for business transactions.
You can agree a longer period than 60 days for business transactions - but it must be fair to both businesses.
If you do not agree a payment date, the law says the payment is late 30 days after either:
- the customer gets the invoice
- you deliver the goods or provide the service (if this is later)