Release date: May 2009

In the current economic climate, rates are likely to fall later this year.

Kelly Henderson, a solicitor at Close Thornton specialising in debt recovery, advises commercial businesses to take advantage of the current fixed Reference Rate before 30 June 2009.

The late payment interest rate that applies in the case of commercial debts is called the Reference Rate. The Reference Rate is based on the Bank of England Base Rate plus 8 % and is fixed for a period of 6 months.

At present the Reference Rate is fixed from 1st January 2009 to 30 June 2009 at 10% ( Bank of England Base Rate of 2 % plus 8 % ), but a change will be made to the Reference Rate depending on the Bank of England Base Rate on 30 June 2009. At the time of writing, the base rate stands at 0.50%.

For specific advice on debt recovery, contact Kelly Henderson direct at kelly.henderson@close-thornton.co.uk or call 01325 466461.

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