Late commercial payments: charging interest and debt recovery

When a payment becomes late

You can claim interest and debt recovery costs if another business is late paying for goods or a service.

You can agree a payment date. If you don’t have an agreement, the law says the payment is late after 30 days for public authorities and 60 days for business transactions after either:

  • the customer gets the invoice
  • you deliver the goods or provide the service (if this is later)

You can agree a longer period for payments from one business to another - but if it’s longer than 60 days it must be fair to both businesses.