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For all business to business transactions and unpaid invoices the Late Payment of Commercial Debts (Interest) Act 1998 puts in place provision for all businesses to claim interest (where there are no written terms of business providing otherwise) at a rate of 8% above the Bank of England Base rate.  It also allows for a set compensation (between £40 and £100 on each debt) payment to be paid by the debtor for late payment and allows for legal costs to be recovered also.

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