AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

HOW TO USE THE LPCDI

6th October 2011, Page 23
6th October 2011
Page 23
Page 23, 6th October 2011 — HOW TO USE THE LPCDI
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

Many operators are dependent on a small number of clients and are reluctant to use the LPCDI for fear of jeopardising future business. However, there are a number of ways in which the legislation can be used to your business’s advantage: • As a deterrent: consider adding wording to all correspondence to warn customers that you may use the LPCDI to collect interest and compensation. You might include this on quotations, order acknowledgements, invoices and reminder letters.

• As a threat: as part of your internal credit control procedures, notify your customers that you will make use of the legislation if you do not receive payment.

• As part of a claim: if you decide to pursue your customer by formally instructing a solicitor or debt collection agency, you are probably no longer concerned about your relationship with them and losing their business. You might as well add a claim for the maximum amount of compensation costs.

• Retrospectively: the LPCDI is not limited to collecting interest on outstanding current invoices. You can also use it to claim interest on invoices that have been paid, but were paid late. You can go back up to six years. However, you may choose to wait until they have ceased to be your customer and then send a demand for all the compensation where it failed to pay on time.

Remember to ensure you put adequate protection in place now. Don’t let late payers affect the success of your business.

Tags


comments powered by Disqus