Statutory Interest 2023

Statutory Interest 2023
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wettelijke rente 2023 can be extremely frustrating and can significantly affect the cash flow of your business. As a last resort, you can pursue legal proceedings to recover the sums owed to your company, but this isn’t always the best option as it can be costly and time-consuming. In some circumstances, you may be able to take advantage of your legal right to charge interest on late payments known as statutory interest.

Statutory interest 2023

The interest rate that can be claimed on a debt is 8% plus the Bank of England base rate for business-to-business transactions. You cannot claim statutory interest on payments to you from private individuals (or consumer customers), but you can claim contractual interest as set out in your terms of trade or contract. If a contract states that contractual interest will be charged, you can make a statutory demand to recover the payment.

You can use a statutory interest calculator to determine how much interest you are entitled to. The Small Business Commissioner has a free statutory interest calculator that will help you work out the correct amount to claim, as well as any late payment compensation that you are also entitled to claim.

The Federal Reserve announces the rates of statutory interest on debt for the next calendar quarter, effective July 1. The rate of statutory interest is determined annually by applying a formula to the high yield auctioned at each 12-month period ending June 1 and adding a statutory add-on percentage that varies depending on loan type.

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