Statements and late payment charges

A statement lists every invoice a customer still owes on one page, with what has been paid and what is left, so they can pay it all in one go. Print it or email it from the customer’s record. When a business customer pays late, the law lets you charge interest at 8% over the Bank of England base rate and a fixed sum for the trouble (£40 on a debt under £1,000, £70 up to £9,999.99, £100 from £10,000). TradePro works the amounts out and can put them on an invoice of their own.

For example: Harbour Lettings owes £1,200 on an invoice 45 days late. With the base rate at 3.75%, interest is £1,200 × 11.75% × 45 ÷ 365 = £17.38, plus £70 compensation.

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Can I charge private customers?
Not under this law: it covers business-to-business debts only. TradePro treats a customer with a company name as a business. For a householder you can only charge interest if your terms said so before the work.

Which base rate?
The rate in force on 30 June (for debts that fall due from July to December) or 31 December (January to June). Set it under Settings, Quotes & invoices.