Rising interest rates can have a significant impact on credit control.
When interest rates rise, it can lead to increased borrowing costs and cash flow problems.
This can make it more difficult for businesses to manage their cash flow and avoid bad debts.
However, there are also some benefits of higher interest rates.
For example, the amount of statutory interest you are legally entitled to for late payments increases.
The Late Payment of Commercial Debts Act gives you the statutory right to claim interest from your customers in the event of late payment of a commercial invoice.
The amount of late payment interest you can legally charge is 8% plus the Bank of England base rate for business-to-business transactions which currently sits at 5.25%, so the late payment interest you can charge would be 13.25% of the total invoice value, up from 13%
