Late Payment Statutory Interest Calculator
Calculate legally enforceable interest and compensation fees on overdue commercial invoices under statutory debt recovery acts.
Late Payment Statutory Interest & Debt Recovery Calculator
Calculate statutory interest (8% + base rate) and legal compensation on overdue B2B invoices under Late Payment Acts.
Includes 45 days overdue interest at 13.0% / yr.
Protecting Cash Flow with Commercial Late Payment Legislation
Late B2B payments plague small businesses and freelance service providers. Statutory interest laws provide creditors with legal teeth to collect what they are owed without entering lengthy court proceedings.
Key Features
Statutory 8% + Base Rate Engine
Implements the statutory interest formula for commercial transactions in England, Wales, and international B2B commerce.
Statutory Fixed Compensation Bands
Adds statutory collection compensation (£40, £70, £100) automatically based on invoice size.
Common Use Cases
- ✓Freelancers & Agencies Chasing Late Payments
Demand overdue payments formally with legally defensible interest claims.
- ✓Credit Controllers & Accounts Receivable
Enforce payment terms against delinquent corporate clients.
Frequently Asked Questions
What is statutory interest on late payments?
Under the Late Payment of Commercial Debts (Interest) Act, businesses have a statutory legal right to charge interest on overdue commercial debts at 8% plus the Bank of England base rate, plus fixed compensation fees.
Can clients contractually opt out of statutory interest?
No. Unless contracts specify a 'substantial contractual remedy' for late payment, statutory interest applies automatically by law.
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