Start with the global decision boundary
The global late-payment guide still owns the dated cash effect, collection scenario and pricing decision. UK payment terms and statutory rights add a contract-specific boundary; they do not create a forecast receipt or a universal pricing surcharge.
Apply the exact local rule delta
| Local question | Reviewed source boundary | Planning action |
|---|---|---|
| What is the contractual due date? | GOV.UK says business payment terms may be agreed; without an agreed date, payment is generally late after the reviewed 30-day fallback point. | Record the actual agreement, invoice and delivery or performance evidence. |
| Is a longer business term valid? | The reviewed GOV.UK guide says an agreed business-to-business payment date should usually be within 60 days unless a longer period is fair. | Do not infer fairness or enforceability; obtain legal review when material. |
| Will statutory recovery be collected? | A supplier may have optional rights to interest and recovery costs. | Model the cash forecast without the amount unless collection is evidenced. |
Stop checks before using the scenario
- Locate the agreed terms and evidence of invoice receipt or delivery. (not complete)
- Record the contractual due date separately from expected receipt. (not complete)
- Confirm whether any statutory right is relevant to the actual transaction. (not complete)
- Keep optional recovery outside base cash until collection is evidenced. (not complete)
- Refresh the scenario when the customer disputes, pays or agrees a plan. (not complete)
Test a labelled local scenario
Local boundary example
This is a reproducible planning example using stated facts. It is not a market benchmark, eligibility decision, legal conclusion or tax calculation.
| Scenario item | Stated base case | Boundary or next check |
|---|---|---|
| Agreed due date | Recorded from the contract and invoice | The agreement is the first factual check |
| Expected receipt date | Later date based on collection evidence | Use this date in the cash forecast |
| Possible statutory amount | Excluded from base cash | No live rate or collection assumption is made |
Use the registered planner after the boundary is confirmed
- Late Payment Cost Planner
Measure the cost created by one late customer payment
Local boundary questions
- Should statutory interest be included in the cash forecast?
- Not as certain cash merely because a right may exist. Include only a separately labelled scenario supported by evidence that it will be claimed and collected.
- Does a late payment automatically justify a price increase?
- No. First measure the dated cash effect and explicit cost, then compare collection, term and pricing options without assuming a universal response.
Reviewed official sources
- Late commercial payments: interest and debt recovery — GOV.UK: Agreed/default payment-date boundaries and optional statutory rights.
- Payment obligations — GOV.UK: Contract terms, fallback payment timing and supplier choice.