Losing interest on money due to you?

How good are your Terms & Conditions?

On the 8th August 2002 a new E.U Law to combat late payment and commercial transactions was introduced into Ireland.

• The implication of these regulations are that if payment for commercial transactions are not met within 30 days (unless specified in contract or agreement) compulsory interest will be payable on the debt by the defaulting party.
  
  
• The level of penalty interest may be set by agreement but cannot be 0% and maybe as high as the European Central Bank (E.C.B) rate plus 7%. The annual interest rate applicable on 31st January was 9.75%. (i.e the current ECB main refinancing rate of 2.75% +margin 7%). A further Bill is anticipated which will give greater details as to the implementation of this directive
  
  
• Any commercial contract made under the law of another member-state of the EU will have access to similar entitlements resulting from this legislation.

It is essential for all prudent businesses to have their standard Terms and Conditions of Trade reviewed and if need be, altered to include specific terms to which:

- Specify the payment period, and

- Specify rates of interest payable in the event of late payment.

We would be happy to provide such a review for you along with advising on cash flow management and/or debt collection services. (Our Professional Fee for reviewing Terms & Conditions is  €500)

We have recently launched an initiative whereby we customise our practise and procedure to match the specific needs of each client and their cashflow management. This can include regular 'on site' visits to our client's offices to review their needs and design a cost-effective procedure incorporating our legal services.

We look forward to hearing from you should you care to have your own standard terms and conditions reviewed or discuss any aspect of debt collection.

> Debt Collection - how it works in Ireland