We were just asked the following question from a company that wishes to remain anonymous: Question Just a quick question – I hope it’s an easy one for you! We have just received an invoice from a subcontractor which states payment terms of 7 days, with interest chargeable after that. As far as I know, no terms were stated by either side before work started. Is the subcontractor within his rights to ask for 7 day payment, or can we legitimately wait 30 days before paying, and ignore any claim for payment of interest? Our Response to them was: Having considered your question in detail, I believe that in view of the fact payment terms were not agreed prior to do business together, then the sub-contractor has no right to demand payment within 7 days. In your position I would pay at 30 days and disregard any claims for interest. If the subcontractor is able to prove that these terms were agreed with your company prior to commencement of works, even if it was a telephone discussion with an employee, then out of fairness to him or her it would only be fair to pay them within the "agreed" terms. However, it is for them to prove that these terms were agreed and not for you to prove otherwise. From a commercial perspective, the sub-contractor may well decide to add interest to the debt if payment is not received in what he or she perceives to be "agreed" payment terms, but, I doubt they would avidly pursue you to actually pay interest, as, they may well jeopardise any future work/contracts with you. In real terms if the sub-contractor receives payment on 30 days, they will be happy, because there are plenty of companies out there that would play the "cash flow game" and withhold payment for as long as possible. Jamie O'Connell Credit Control Solutions