New figures from a recent survey have shown that over 80 per cent of firms have neglected to update their terms and conditions in order to take advantage of late payment regulations.

Lovetts law firm reported that a mere 32 per cent of businesses were claiming legal recovery costs and compensation on late payments despite the ability to do so being written into law.

The legalities came into action last year as part of the UK adopting an EU directive and Lovetts are suggesting that the findings may be due to a lack of awareness or fear of effecting custom.

Charles Wilson, CEO of Lovetts, said:

“Our survey suggests businesses are missing a major opportunity to claim compensation and reasonable costs on overdue invoices – effectively making the debt recovery free.

“Of course, what businesses may fear is that legal costs could spiral given the huge increase in court fees earlier this year, but if they implement the new regulations, many businesses could actually find most of their legal costs are covered.”

Source: Supply Management

Image source: Prologis