The Late Payment of Commercial Debts Act 1998 gives you the automatic right to claim statutory interest at 8% above base rate — on top of the principal debt. Most businesses never claim it.
Build your document pack from £29.99 — or get a free case review from a specialist who handles B2B debt recovery end-to-end.
What you are entitled to claim
Interest
+£110
Charge
+£70
Total claim
£5,180
Interest
+£493
Charge
+£100
Total claim
£15,593
Interest
+£2,466
Charge
+£100
Total claim
£52,566
Statutory interest calculated at 8% above Bank of England base rate (approx. 13.25% p.a. at current rates). Fixed charges under the Late Payment of Commercial Debts Act 1998.
Late Payment of Commercial Debts Act 1998 — Your Automatic Entitlements
Every B2B debt in England and Wales automatically carries the right to statutory interest at 8% above the Bank of England base rate from the date payment was due, plus a fixed debt recovery charge of £40–£100 depending on the debt amount, plus reasonable recovery costs. Your Letter Before Action will reference all of these entitlements explicitly — most debtors are unaware you can claim them.
Select your debt type to see the legal basis, interest entitlements, and urgency level.
Goods or services supplied to another business on standard trade terms. The most common B2B debt type.
Legal basis
Late Payment of Commercial Debts Act 1998
Interest entitlement
Statutory interest from day 31
Urgency
High
Most B2B debts are resolved at stage one. Each stage increases pressure — and cost to the debtor.
A formal written demand referencing the Late Payment Act, statutory interest entitlements, and the 14-day deadline. The most effective single step — resolves the majority of B2B debts.
For debts up to £10,000, file online at Money Claims Online. For larger amounts, issue proceedings at the county court. No solicitor required for small claims track.
For debts over £750, a statutory demand can be served on a limited company. Failure to pay within 21 days is grounds for a winding-up petition — significant leverage.
Once a CCJ is obtained, enforcement options include High Court Enforcement Officers, attachment of earnings, charging orders, and third-party debt orders.
Not sure which stage applies to your situation?
A specialist can assess your case and recommend the most effective approach — free, no obligation.
For B2B debts above £3,000 — particularly where the debtor is a limited company, the debt is disputed, or you need to consider statutory demand or winding-up proceedings — a specialist debt recovery firm will achieve significantly better outcomes than a self-managed approach.
Our specialist network handles commercial debt recovery end-to-end: from the first formal letter through to enforcement. They work on a success-fee basis for qualifying cases — you pay when they recover.
Free review · No obligation · Success-fee basis for qualifying cases
Ideal cases for specialist help
Prefer to build your own pack?
The structured document pack from £29.99 includes a Late Payment Act-compliant Letter Before Action with statutory interest calculation — suitable for all B2B debt types.
Everything you need to pursue a commercial debt professionally — including your full Late Payment Act entitlements.
A professionally worded formal demand referencing the Late Payment Act, statutory interest entitlements, and the 14-day deadline.
Your interest entitlement calculated at 8% above the Bank of England base rate from the date payment was due — included in the LBA.
The applicable fixed debt recovery charge (£40, £70, or £100) included in your formal demand — most debtors are unaware you can claim this.
An honest assessment of your claim — how strong your evidence is, what the debtor is likely to do, and your realistic recovery options.
Step-by-step guidance from LBA through to county court, statutory demand, and enforcement — so you know exactly what to do at each stage.
A tailored checklist of the commercial evidence you should gather — purchase orders, delivery records, email chains, payment history.
B2B Debt Recovery Pack — £29.99
One-off payment · Instant download · No subscription
Get a free specialist case review for high-value B2B debts — or build your own Late Payment Act-compliant Letter Before Action for £29.99.
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