Late payers will have to pay interest
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• Hauliers will be able to charge interest on overdue debts from next year as part of a Government clamp-down on late payment.
Small Firms Minister Barbara Roche unveiled a consultation green paper last week with a series of proposals.
"Late payment is not an acceptable business practice," says Roche. "It disrupts cash
flow, reduces profits and restricts growth." Proposals include: • Setting a 30-day credit period from the date of invoice or from delivery; • Imposing interest on overdue debts at base rate plus 4%; • Prohibiting businesses from "contracting out" of the legislation. The Road Haulage Association says that many hauliers are forced to wait 60 days for payment.
It believes the legislation will help haul in hundreds of millions of pounds.
Consultation on the proposals should end in October with a bill before the end of December. The law could be on the statute books by next summer.