Question 1

What counts as a late payment?

Accepted Answer

A payment is late when it has not been received by the due date stated on your invoice or agreed in your contract. If no payment terms were agreed, payment is typically due within 30 days of the invoice date or delivery of goods/services.

Question 2

How long should I wait before chasing a late payment?

Accepted Answer

You can start chasing payment as soon as it becomes overdue. It is usually unwise to wait because the longer a debt is outstanding, the harder it often becomes to collect. Garfield can send friendly reminders immediately after the due date, then escalate to formal demand letters if the debtor does not respond.

Question 3

Can I charge interest on late payments?

Accepted Answer

Yes. If it is a B2B debt, under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge interest on late B2B payments at 8% above the Bank of England base rate, plus a fixed compensation amount. Alternatively, you might have an entitlement in your contract and as a final alternative under the County Courts Act. Garfield calculates this automatically.

Question 4

What is the compensation I can claim for late payment?

Accepted Answer

For business-to-business debts, you can claim fixed compensation: £40 for debts under £1,000, £70 for debts between £1,000 and £9,999, and £100 for debts of £10,000 or more. This is in addition to interest. Your contract might give you other or additional entitlements

Question 5

Should I chase late payments from good customers?

Accepted Answer

Yes. Most late payments are due to oversight or cash flow issues, not bad intent. A professional, automated reminder often prompts quick payment without damaging the relationship.

Question 6

What if my customer is experiencing financial difficulty?

Accepted Answer

It is better in this circumstance to negotiate payment plans or settlements with debtors who cannot pay in full immediately. Recovering something is often better than getting nothing from an insolvent debtor.

Question 7

Can I recover multiple late payments at once?

Accepted Answer

Yes. Garfield can process your entire accounts receivable backlog, chasing multiple debtors simultaneously. Each case is handled individually with appropriate correspondence.

Question 8

How does Garfield integrate with my accounting software?

Accepted Answer

Garfield connects with popular accounting platforms like [Xero](https://www.xero.com/uk), [Sage](https://www.sage.com/en-gb), [QuickBooks](https://quickbooks.intuit.com/uk) and [FreeAgent](https://www.freeagent.com/). Once connected, it can automatically identify overdue invoices and start the recovery process without manual data entry.

Question 9

What if the debtor says they never received the invoice?

Accepted Answer

Garfield maintains records of all correspondence. If a debtor claims they did not receive an invoice, Garfield can resend it along with a demand letter, resetting the payment deadline. You can also choose to attach it to your letters.

Question 10

At what point should I consider court action?

Accepted Answer

If a debtor has not paid or responded to a formal Letter Before Action within 30 days, you can consider issuing court proceedings. Garfield can escalate your case automatically and draft appropriate Court proceedings if the debtor remains unresponsive.

Question 11

Can I use Garfield for consumer debts?

Accepted Answer

Garfield is designed for both business-to-business and business-to-consumer debts.


Feature	With Garfield AI	With a lawyer	By yourself
Legal expertise	YesLegal expertise	Yes	No
Connect accounting software	YesConnect accounting software	No	No
Bulk create claims	YesBulk create claims	No	No
5 minutes per document	Yes5 minutes per document	Wait days for documents	At your own pace
Recover money faster	YesRecover money faster	No	No
Low fees	YesLow fees	Hundreds of £ per hour	Pay with your own time
Available 7 days a week	YesAvailable 7 days a week	No	Yes


Feature	With Garfield AI	With a lawyer	By yourself
Legal expertise	YesLegal expertise	Yes	No
Connect accounting software	YesConnect accounting software	No	No
Bulk create claims	YesBulk create claims	No	No
5 minutes per document	Yes5 minutes per document	Wait days for documents	At your own pace
Recover money faster	YesRecover money faster	No	No
Low fees	YesLow fees	Hundreds of £ per hour	Pay with your own time
Available 7 days a week	YesAvailable 7 days a week	No	Yes

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