In the current economic environment, late payment is becoming more and more of an issue for business.
Although most suppliers will try to come to an arrangement with a client who may be under financial pressure, it is an unfortunate fact of life that some clients will not pay their invoices promptly and may try to delay and frustrate your normal payment process. The late payments in commercial transactions regulation 2002 is designed to help protect small business by providing for interest payments for late invoices. In the absence of other agreements, the legislation allows the automatic application of interest to any invoices that are outstanding for more than 30 days.
If you decide to apply interest to a late paying client, use this handy spreadsheet to calculate the amount due to you from a late paying client.
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