A YEAR on from the introduction of the final phase of the late payment legislation, the Better Payment Practice Group (BPPG) is keen to ensure businesses are making the best use of their rights.

While the number of firms making their customers aware of their rights under the legislation has increased four-fold in the past three years, the BPPG is aware that many firms remain unclear about how and when to use the legislation.

To help businesses, the BPPG has put together answers to some of the most commonly asked questionson its website: www.payontime.co.uk.

Mr Clive Lewis, BPPG Chairman, said: "The late payment legislation is not intended as a substitute for good credit management and should be used alongside other techniques such as credit vetting, accurate invoicing and a good collections process.

"Firms can find the legislation is best used as a deterrent against the instance of late payment rather than a last resort when faced with an overdue invoice.

"We hope that by publishing the common misconceptions, businesses will feel more confident about when and how to use their statutory rights."