Before being eligible to claim late payment, you must show that you have made sufficient contact with a client in relation to the debt. This can include calls, emails, letters, or any other correspondence for the purpose of reminding the debtor of their due payment.
You must also be able to show that you have been reasonable in your approach towards the client – if a trader has been threatening with their debtor, the courts will not judge this as reasonable and the trader may lose the case completely. Maintain professionalism and chase up debts in a reasonable manner or else you may lose any claim you have at all.
If you can show that you have made reasonable attempts to claim the debt before the due date and the late payment date passes, then sending an overdue payment reminder or a late payment invoice is the next step.
If the debtor fails to pay after receiving a late payment invoice, the creditor can claim the payment through the courts. This may require expert advice from solicitors or debt collectors, depending on the structure of the company.
Remember, being able to show that you have made reasonable attempts to claim the debt before the late payment date has passed is key to successfully claiming late payment fees. Keep records and clearly present them to your debtors and, if necessary, court representatives.