So where is the risk?


Well these penalties can be pursued for up to six years. Many businesses are completely unaware of the legislation or suppliers chose to preserve goodwill with their clients by holding back. However if a supplier gains insight or has a change of management, there is a strong possibility that this could change. Worse still, if the supplier goes bust, it would be slap dash for a receiver to ignore the potential assets that 6 years of uncollected late payment penalties represents. So to pay invoices late on a regular basis is to build up a potential future debt.

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