Late Payment time bomb!

If, as a small business, you pay your suppliers late i.e. outside the agreed payment terms or outside 30 days if there are no payment terms, then you are vulnerable to claims for late payment penalties. Even if the supplier does not exercise their rights they have 6 years in which to do so.

If they go out of business the accountants winding up the business have a duty to maximise the income and so more often than not will look out for outstanding late payments. If they are within the 6 year period then they are fair game.

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