Late Payment Policy

Purpose
This policy sets out our approach to managing late payments for goods that have already been dispatched to you. Our aim is to ensure timely payment while maintaining transparent and fair communication with our customers.

1. Late Payment Interest and Charges
We expect all invoices to be paid in full by the stated due date. Where payment is not received on time, we reserve the right to charge interest on the overdue balance.

Interest will be applied at a fixed rate of 5% of the outstanding amount + the current Bank of England base rate per annum, calculated on a weekly basis (in arrears) from the day following the due date until the date payment is received in full . This charge is intended to recover the costs associated with delayed payment and is enforceable under the terms of our sales agreement and in line with The Late Payment of Commercial Debts (Interest) Act 1998.

You will be notified of any interest accrued via statement or updated invoice, and payment of such charges will be expected in addition to the original invoice amount.

2. Reminder Schedule and Escalation Process
To facilitate prompt resolution of overdue accounts, we operate the following staged reminder and escalation process:
- Day 31–38: You will receive a friendly reminder via email, notifying you of the outstanding amount and requesting immediate payment.
- Day 60: If payment remains outstanding, we will issue a formal letter requesting settlement of the overdue balance and informing you that the account is now in breach of agreed terms.
- Day 74: A final notice of intent to escalate will be sent. This correspondence will indicate that if payment is not received within the next 14 days, your account will be referred to a senior member of your organisation (e.g. Manager or CEO) for review and further action.
- Day 90: If payment remains unpaid, we will begin escalation proceedings. This may include referring your account to external collection agencies for recovery, and where necessary, commencing legal action.

Each stage is intended to offer you an opportunity to resolve the matter amicably before more formal steps are taken. We encourage open communication at all stages to avoid unnecessary escalation.

3. Suspension of Services and Deliveries
In cases where payment is not received by the due date and the balance remains unpaid following our reminders, we reserve the right to suspend any future deliveries or services to your account.
This suspension will remain in place until all outstanding balances, including any applicable interest and fees, are settled in full. This action will be taken without liability for any resulting delays or impact to your operations.

4. Debt Recovery and Legal Action
If an account remains unpaid for 90 days or more and no satisfactory resolution has been reached, we will take appropriate steps to recover the debt through external channels. This may include:
- Referral to a debt recovery agency;
- Commencement of legal proceedings;
- Recovery of all reasonable costs and fees associated with collection, which will be added to the outstanding balance.

Our preference is always to work directly with you to find a solution. However, we will act decisively to recover overdue payments in order to protect the financial health of our business.

Communication and Queries
Should you experience genuine difficulties in meeting your payment obligations, we strongly encourage you to contact our accounts department as early as possible. We are open to discussing payment arrangements where appropriate, provided the dialogue is initiated in good faith.