CW contract Law and Legal

02/09/2026

Late Payment Law For Cashflow For Business

Many companies do not realise that there is late payment law; The Late Payment of Commercial Debts (Interest) Act 1998 (the Act) and there are many companies who decide they are going to pay late to improve their cashflow position and seem to think they can merely pay what is on the invoice when they decide to pay (we know the head of finance of one multinational who boasted they earned over £2m per year by deliberately paying invoices on 90-120 days instead of the agreed 60 days eom).
Late payments create cash flow problems and can increase the risk that you will not be paid at all. Using your legal right to claim interest from late-paying customers can encourage customers to pay on time.
The statutory right to interest and compensation applies to all contracts. You need to decide whether to enforce your rights, and if so how.

2. The right to charge interest
Every business has a statutory right to charge interest on late payments
c. The right applies to sales to business and public sector customers.
d. The right does not apply to sales to consumers.
3. You can set out in your own contractual agreement instead
a. The contractual agreement must provide a 'substantial remedy' if the customer pays late.
b. The customer cannot impose unfair terms: for example, contractual payment periods are usually capped at 60 days.
c. Public sector customers must pay within 30 days and interest on late payments cannot be lower than the statutory amount.
d. In the absence of any specific payment terms, the statutory right will apply
e. Interest starts being chargeable from the end of the agreed credit period
f. If you have not agreed credit terms, normally a payment is late after 30 days.

4. What difference does it make?
a. Under the law, company finance directors who made a habit of taking extra credit from suppliers to improve cash flow may have had to think again.
b. There will be less free credit to be had just by paying slowly
The 'base rate +8% set out in the law means money 'borrowed' by delaying payment is more expensive than overdraft money from the bank.
5. The rate of interest
The law gives you the right to charge interest at the Bank of England base rate plus 8%
a. For example, todays base rate is 3.75% so interest can be charged at 11.75%
b. You can also claim Statutory Charges and reasonable debt recovery costs
c. You can claim £40 for debts of less than £1,000, £70 for debts between £1,000 and £10,000 and £100 for debts of £10,000 or more. #
d. If your costs are higher than this (for example, if you are using a debt collection agency) you can claim 'reasonable' recovery costs.
e. You can only claim these costs if you are claiming the interest due under the Act. If you do not claim interest, or you claim it under a contractual provision or the provisions of a different Act, you cannot claim the costs.

6. At all times assess the effectiveness of your credit control system and always be clear in your terms and condition about who is paying you and when and never be frightened to ask for your monies son time plus interest as you retain the right to define your own terms and conditions.
7. Inform customers when interest begins to accumulate
8. Claims for interest on late payment do not have to be made straight away.
a. A supplier has six years in which to make a claim
b. Trading terms must have been agreed and the customer duly notified when interest began to accumulate.
c. The six-year claims period is the same throughout England, Wales and Northern Ireland, but the period is only five years in Scotland.
d. Businesses may still make claims after they have stopped supplying a customer
e. Liquidators and receivers acting in connection with a business can also pursue ex-customers for interest on late payments, going back up to six years.7. What if a customer objects?
9. Despite the law, your customer may be unwilling to pay interest on late payment - but they cannot 'opt out' of doing so. In the interests of customer relations, try other ways of obtaining your money before considering legal action.

Award winning Business Debt Recovery and Commercial Debt Collection from offices in Surrey and Dorset with no win no fee offered as standard. If a debt can be collected we can collect it.

13/08/2026

The UK Competition and Markets Authority (CMA) has published its final revised guidance on unfair contract terms following a public consultation. The updated guidance, published on 22 July 2026, replaces the previous 2015 guidance (CMA37) and is intended to help businesses better understand and comply with the unfair contract terms provisions in the Consumer Rights Act 2015.
If you need a contract review under our £1m PI insurance then we deliver with prices starting at £90.00 and we offer a free no obligation consultation from offices in Surrey and Dorset. CW Contract Lw and Legal also deliver Business Debt recovery, Business Debt Collection and commercial Debt Collection.
For the full text of this article visit us at www.cwcontractlawandlegal.co.uk

25/11/2024

How do you Recover Business Debt?

Running a business can be tough, and one of the biggest challenges is dealing with unpaid debts. If you’re owed money by a customer, it’s important to take steps to recover the debt as soon as possible. The longer you wait, the less your chances are of getting your monies.

Whether it’s overdue invoices, unpaid loans, or a contract breach, the efficient recovery of debts is crucial for maintaining a healthy cash flow and sustaining business operations.
How does the debt recovery process work?
3. Initial step
Keeping a good record of all invoices, letters, and other communications with the debtor will assist with any legal action if you intend to claim debt recovery costs on late payments. By having a clear concise process surrounding any debt, businesses can proceed with confidence.
4. Informal Communication
Businesses should be proactive when it comes to debt recovery and late payments. Calling first then sending letters to remind the debtor of the amount outstanding and the deadline for payment allows businesses and debtors to explore mutually agreeable payment arrangements or alternative solutions..

5. Formal Demand
If informal communication fails to yield results, the next step is to issue a formal demand letter. This letter, often referred to as a Letter Before Action (LBA),” outlines the outstanding debt, provides an opportunity for the debtor to settle, and stipulates a deadline for payment. It is important to draft this letter carefully, as it serves as crucial evidence should legal proceedings become necessary for business debt recovery.

6. Legal Options for Debt Recovery
If the LBA does not result in payment then it may well be necessary to pursue the alternative legal options at your disposal.
7. County Court Judgment (CCJ)
If the debtor fails to respond or settle the debt after receiving a formal demand, businesses may escalate the matter by filing a claim in the County Court.
The debtor can either ignore it, in which case you can file for judgement by default or the debtor can file a defence. If that happens there are certain legal procedures you must adhere to.
Once the court issues a CCJ, it acts as a formal court order demanding the debtor to repay the debt within a specified timeframe.
8. Insolvency Proceedings
In cases where the debtor is unable to repay the debt, businesses may consider initiating insolvency proceedings. This includes issuing a winding-up petition for companies or a bankruptcy petition for individuals. These actions seek to liquidate the debtor’s assets and distribute the proceeds among the creditors.
9. Enforcement Options
If the debtor does not comply with the CCJ, businesses can pursue enforcement options to recover the debt. Several methods are available, depending on the circumstances and the amount owed:
a. Warrant of Control
This enforcement option allows businesses to instruct court-appointed enforcement officers, known as bailiffs, to seize and sell the debtor’s assets to repay the debt. Bailiffs have the authority to visit the debtor’s premises and take control of goods that can be sold at auction.
b. Attachment of Earnings Order
If the debtor is an individual employed under a contract of service, businesses can apply for an Attachment of Earnings Order. This requires the debtor’s employer to deduct a portion of their wages and pay it directly to the business until the debt is satisfied.
c. Charging Order
For debts secured against property, businesses can seek a Charging Order. This places a charge on the debtor’s property, preventing them from selling it without repaying the outstanding debt. The charge can be converted into a forced sale, forcing the debtor to settle the debt from the proceeds.
d. Third-Party Debt Order
When the debtor owes money to a third party (such as a bank or customer), businesses can apply for a Third-Party Debt Order. This allows the business to intercept and claim the funds owed to the debtor, diverting them towards the outstanding debt.

10. How long does a company have to recover a debt?
Under normal circumstances, the limitation period to claim debt recovery costs on late payments is six years. This is counted from the date when the debt become outstanding. The time limit then steps once a claim is issued in court.
It is also important to note that, under the Limitation Act, the six-year time limit will also restart from the date when the debt has been acknowledged in writing, or a part payment is made against the debt. Claims outside this window will be statute-barred.
11. Can I recover debt from a limited company?
Yes, if the debt owed to you is from a limited company, you will have a number of options available to you. Using a debt recovery specialist with no upfront fees will enable us to assess whether the debtor is solvent and whilst AVC Debt Recovery can collect any business debt (B2B B2C, C2B) if it is collectable not all debts are collectable and often getting the court order is the easy part. That is why we offer no win no fee as standard because we deliver your monies into your account or we do not get paid.

Our business debt recovery team has the necessary skills and experience to handle negotiations and settlements with debtors. We are well-versed in the tactics used by debtors to evade payment and can, and will, employ various legal tools to maximise the chances of successful recovery. This includes sending demand letters, initiating legal proceedings, and, if necessary, obtaining you representation in court.
Business owners and managers may have personal relationships or emotional attachments with their debtors, making it difficult to handle negotiations. Debtors are also more likely to take legal action seriously when they realise that a business has enlisted the support of legal professionals.

Business debt recovery and commercial debt recovery via experienced contract law professionals with offices in Surrey and Dorset . No win no fee offered as standard. A professional business debt recovery and debt collection agency that specialises in the recovery of business debts throughout the UK....

25/04/2023

Data Protection and Digital Information Bill

Small businesses in the UK have been facing significant challenges when it comes to complying with the General Data Protection Regulations 2016/679 (GDPR 2018). Many of us are driven to distraction when people state they cannot say anything because of GDPR 2018 when the DPA 1998 was in place for years and nobody batted an eyelid.
The requirement to fulfil Data Subject Access Requests, perform data risk assessments, and adhere to data breach policies can be overwhelming, especially for small businesses with limited resources.
To help streamline these processes and ensure that personal data is adequately protected, HM Government has introduced to parliament the Data Protection and Digital Information (No. 2) Bill. This Bill, which was presented to the House of Commons in March 2023, aims to make it easier for both small and large businesses to conduct their operations while maintaining compliance with GDPR regulations.

Here are some of the key provisions of the UK Data Protection and Digital Information Bill and how it can benefit businesses.

What is the Data Protection and Digital Information (No. 2) Bill?

“This Bill is intended to update and simplify the UK’s data protection framework to reduce burdens on organisations while maintaining high data protection standards.”
The Bill aims to provide more flexibility when complying with the legislation and clarify the often confusing aspects of cross-border data transfers.
In addition, the Bill puts provisions to reform the Information Commissioner’s Office (ICO) - “hurrah”! - including its governance structure, duties, enforcement powers, reporting requirements, data complaints processes, and its development of statutory codes of practice.
A framework for providing UK digital verification services is also included to enable digital identities and attributes to be used with the same confidence as paper documents and regulations covering smart data schemes.

Other effects of the Data Protection Bill include the following:
a. Increasing fines for nuisance calls and texts under the Privacy and Electronic Communications Regulations (PECR)
b. Updating the PECR to reduce ‘user consent’ pop-ups and banners
c. Allowing for the sharing of customer data through smart data schemes to provide services such as personalised market comparisons and account management
d. Reforming how births and deaths are registered in England and Wales enables the move from a paper-based system to electronic registration
e. Facilitating the flow and use of personal data for law enforcement and national security purposes
f. Creating a clearer legal basis for political parties and elected representatives to process personal data for democratic engagement

Data Protection and Digital Information Bill summary

Now that the UK has left the EU, the Government wants to take advantage of the opportunity to improve data protection compliance for businesses while maintaining high standards of personal data protection.
The Government believes certain elements of the GDPR 2018 and the Data Protection Act 1998 (DPA) “create barriers, uncertainty, and unnecessary burdens for businesses and consumers”.
In addition, following an extensive research and consultation process, HM Government believes that the current data protection legislation leads to box-ticking compliance activities rather than “one which encourages a proactive and systemic approach.”
Also, it has been identified that researchers require more flexibility concerning re-using personal data for long-term research projects.

Why is the ICO being reformed?

The ICO is being reformed by HM Government to provide a more transparent and comprehensive framework for the supervisory authority's role in protecting personal data.
The Data Protection and Digital Information Bill introduces Section 120A, which outlines a new principal objective for the ICO. This objective requires the ICO to prioritise securing an appropriate level of safeguarding for personal data, considering the interests of data subjects, controllers, and other parties, as well as matters of general public interest. The ICO must also promote public trust and confidence in the processing of personal data.
Furthermore, Section 120B mandates that the ICO publish a "forward-looking" strategy that outlines how it will balance economic growth and data protection functions. These changes demonstrate HM Government's commitment to ensuring that personal data remains secure and that individuals' privacy rights are respected in the digital age.

Amendment
The proposed Data Protection and Digital Information Bill brings about significant changes to data privacy and protection laws in the UK. One notable amendment is Clause 13, which seeks to remove Article 27 from the GDPR 2018 entirely. This change aims to simplify the compliance process for overseas-based controllers and processors who are required to adhere to GDPR 2018 under Article 3(2).
As a result, these entities will no longer need to appoint a UK-based representative, and instead, will be allowed to decide on how to facilitate effective communication between themselves, UK data subjects, and the ICO.

Finally
Nothing set out herein constitutes legal advice on which you should rely. This article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on this content.
www.cwcontractlawandlegal.co.uk

10/01/2023

How do I Choose a Debt Recovery Agency

Collecting unpaid monies as a debt can be a difficult and time-consuming process, but the process itself is crucial to the smooth running of your business or organisation. It helps the vital cash flow as cash is king and always will be. If your in-house team is struggling to cope with can’t pay or won’t pay then their time could be more productively focused on other activities, so it may be time to consider using a specialist debt recovery agency.
A professional debt recovery agency can provide valuable support and help you get paid what you're owed quickly and efficiently. You can rely on them for all aspects of debt recovery, from chasing unpaid debts to negotiating payment plans or, in more stubborn cases, instigating legal action the enforcement via the High Court.
Remember, no two debts are the same, so when appointing a debt recovery specialist you are doing more than putting your unpaid monies into their hands; you are also creating a business partnership of trust so ask yourself these questions before making your decision:

1. What is their modus operandi?
Many agencies offer bells and whistles and a cheap one stage letter or 3 stage format to sign you up then seek to pass you on to a solicitor they are in partnership with , or tell you they alone collect debts successfully then spring a large up-front fee on you. The best debt recovery agencies offer a frere analysis and no up-front fees.
2. Are they regulated?
B2B debt recovery does not require regulation. Only those agencies that collect debts from consumers under The Consumer Credit Act 1974 (CCA 1974) are required to be FCA regulated. All business debt collectors used to have to be registered with the Office of Fair Trading (OFT), but HM Government changed that requirement. The criteria for B2B debt recovery is can the debt be collected successfully and regulation is not required for that?
3. Are you appointing a computerised office?
Many of the agencies who are FCA regulated are merely playing the numbers game via computer generated 3 stage form letters with a customer service department and they transfer their use of their CCA 1974 letter writing to business debt recovery and forget that analysis is crucial and human beings still have the edge when analysis is required.
4. Will they take the debt legal for you?
Many of the agencies offer a cheap one stage letter or 3 stage format to sign you up then when it comes to legal action they pass you on to another solicitor they are in partnership with. The best debt recovery agencies offer no win no fee and a one stop shop services and follow through with in-house legal action as part of their offer.
5. How long have they been trading?
The best debt recovery companies have been around for 5 years + as only those that deliver services that deliver monies for clients can survive when they offer no win no fee as standard.
6. What do the reviews say?
As with any potential new supplier, it's a good idea to Google the company and check out what people are saying about them. That being said, everyone has a few disgruntled customers and some reviews can be unreasonably negative, so you should always take a consensus rather than relying on the first one or two you read. You can also learn a lot about a company from how they respond to any negative reviews or comments.
7. What about testimonials from current clients?
Recommendation is one of the best ways of finding a reliable debt collection agency. Try to talk directly to someone who has used them. It will give you an opportunity to ask questions and assess whether the company is right for your particular needs.
8. Do they have relevant experience for your industry?
Whether you are a small sole trade or a larger company, working with a debt collection agency that understands the commercial environment you're operating is important. That's why it's worth checking out their relevant sector experience.
9. Will they act according to your company ethos?
Just because someone has an overdue debt, it doesn't necessarily mean that your trading relationship with them has irretrievably broken down. They could be suffering a temporary cash flow issue or simply have overlooked the debt. That's why it's vital that the debt collection agency you choose operates with the express instruction you give them and have the flexibility to adapt. They are representing you and your relationships, although a can’t pay or a won’t pay may not be top of any list for a continuing relationship.
10. What levels of communication do you want?
It's important for you and your term to set the reporting levels so there is no ambiguity.

Conclusion
Instructing a debt recovery agency is a big step, particularly if you've always relied on your own staff to take care of credit control. Therefore, the 10 points above should be considered. Whilst nobody can fulfil 100% the criteria of point 8 above AVC Debt Recovery are a name to trust allied to being specialists in contract law and that is the basis for 100% of all business in the UK. That allied to common sense and understanding that people agree contracts, so its best that people seek to recover monies visit

Business debt recovery and commercial debt recovery via experienced contract law professionals with offices in Surrey and Dorset . No win no fee offered as standard. A professional business debt recovery and debt collection agency that specialises in the recovery of business debts throughout the UK.

12/10/2022

Post Covid (not that it is yet post Covid) every business will be feeling the pinch and some companies will seek to improve their cashflow by restricting your cashflow by paying you more slowly. As a business, it’s important that you get paid what you’re owed by your customers/clients. Late payments, and people trying to avoid paying for goods and services, can be costly to your business and have long-lasting and damaging repercussions.

Here are seven basic tips
1. Invoice as normal
2. Chase
3. Credit hold
4. Final notice
5. Legal action
6. Debt Recovery
7. Analysis
For all your business debt recovery requirements or a free no obligation consultations call 0333 121 0161 or visit www.avcdebtrecovery.com

12/10/2022

Post Covid (not that it is yet post Covid) every business will be feeling the pinch and some companies will seek to improve their cashflow by restricting your cashflow by paying you more slowly. As a business, it’s important that you get paid what you’re owed by your customers/clients. Late payments, and people trying to avoid paying for goods and services, can be costly to your business and have long-lasting and damaging repercussions.

Here are seven basic tips
1. Invoice as normal
2. Chase
3. Credit hold
4. Final notice
5. Legal action
6. Debt Recovery
7. Analysis
For all your business debt recovery requirements or a free no obligation consultations call 0333 121 0161 or visit

From offices in Surrey and Dorset we deliver business debt recovery, commercial debt recovery and business debt collection via experienced contract law professionals. A business to business debt recovery agency that collects your monies successfully, getting your monies into your account across the....

06/09/2022

Getting Paid on Time in Crisis Times

There’s no escaping the news headlines about the cost-of-living crisis currently unfolding here in the UK. There is certainly no magic wand to end the cost of living crisis, but what we do have here at CW Contract law and Legal and AVC Debt Recovery is a team who can help should your business start to be affected by late or overdue payments. Whilst in these unprecedented circumstances a degree of empathy and understanding should be given, not getting the money owed to you could be detrimental to your business.

Late or overdue payments can cause significant problems for any business, and quickly turn a profitable operation into one with cashflow difficulties. If there is no dispute over the amount owed, but no payment has been forthcoming, it may be beneficial to seek debt recovery advice.

Our legal experts have many years of experience in dealing with credit control and can help you to achieve full payment of the debt. Evidence suggests that the longer a debt goes unpaid, the chances of recovery reduce so swift action is essential.

We are one of the few to offer a free no obligation legal consultation and our team can provide practical and economical advice on all areas of debt recovery.

www.avcdebtrecovery.com

Business Debt Recovery, Business Debt Collection and Commercial Debt Recovery. Offices in Surrey and Dorset. Debt recovery and debt collection from experienced contract law professionals. A business to business debt recovery agency that collects your monies successfully getting your monies into your...