The challenge
The situation
A flooring contractor had worked for a housebuilder for years, but £39,430 of invoices had gone unpaid for more than three years. The relationship mattered on both sides, so the client wanted the money without a fight.
What we did
What happened
The housebuilder accepted it owed the principal, but disputed the £14,877 of statutory interest and costs and asked for instalments. We explained the interest was legally due under the Late Payment Act. To keep things moving, we agreed a plan to clear the principal first and deal with the interest after.
Four instalments came in, then payments stopped. The client didn't want any more plans. We told the housebuilder the full balance, interest included, was now due, or a statutory demand would follow. Within two weeks, it paid everything that was left.
The outcome
The result
The full £54,307 was paid in eight payments: the debt plus every penny of interest and costs. That's 38% more than the original invoices.
