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Late Payment Interest inv paid, not initial debt?

Client has paid the invoice for Interest on Late Payment but not paid the original services invoice

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Good morning

I would be grateful if someone could advise me on what interest can be charged today, the client has paid the invoice for Late Payment Interest that was raised after the original invoice was 70 days overdue, but the original services invoice remains unpaid in full.

Should the interest on late payment only be charged from 71 days overdue to now, or on the full 110 days overdue?

Thank you in advance for your assistance.

 

 

Replies (8)

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By johngroganjga
17th Feb 2020 13:11

So he has paid interest for the first 70 days and you are asking whether he still owes it?

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Replying to johngroganjga:
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By NikkyJJ
17th Feb 2020 15:11

The client has paid the invoice for late payment interest, which was calculated when the original invoice for services was 70 days overdue, as you state.
This original invoice is still unpaid and remains due in full.

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Replying to NikkyJJ:
By johngroganjga
17th Feb 2020 15:31

And your question is whether to invoice him again for the interest he has already paid, or only for new interest which he is yet to pay?

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RLI
By lionofludesch
17th Feb 2020 13:31

Ah - come on, Nikky. You're pulling our legs, aren't you ?

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By bernard michael
17th Feb 2020 15:23

The creditor is now in a strong position to sue the client as he has admitted the debt by paying the interest.
The interest on the debt continues from the 70th day but if he is sued it will be at County Court rates

Why isn't the client paying the original invoice ??

I got my original answer back to front

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Replying to bernard michael:
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By NikkyJJ
17th Feb 2020 16:07

Thank you for re-phasing, I understood what you meant.
As for why he isn't paying, that is a very good question. I can only assume that it is due to cashflow problems which of course doesn't help mine!

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By johnt27
18th Feb 2020 10:04

When you say you've invoiced for late payment interest have you also included the fixed compensation costs you're entitled to as well?

https://www.smallbusinesscommissioner.gov.uk/deal-with-an-unpaid-invoice...

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By jon dickinson
26th Feb 2020 14:20

As an aside, it is worth noting that you can claim interest and compensation on debts paid late-even when the principal has been paid in full! Our Company specialise in taking cases of this nature to Court and in one case recovered £285k on late paid invoices paid in full (but late) over a 6 year period!The compensation due is always the larger amount to be claimed.

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