Statutory Interest Calculator

Act as a specialist consultant.

**Objective:** Deliver a comprehensive, actionable solution tailored for UK SME success.

Here is the improved business prompt template, maintaining the exact structure while enhancing clarity, persuasiveness, and expected results:

**Revised Business Prompt Template:**

To secure prompt recovery, a B2B client currently owes the principal sum of **[Debt Amount | text]** and this payment is now **[Days Overdue | number]** days significantly past the agreed-upon due date.

Leveraging the explicit provisions of the **'Late Payment of Commercial Debts (Interest) Act 1998' (UK)**, draft a precise and legally robust formal demand letter. This letter must clearly establish the basis for recovery and stipulate the imminent deadline for full settlement.

**Mandatory Calculation & Action Plan:**
1. **Statutory Interest Calculation:** Accurately calculate the accumulated statutory interest due, based on the current Bank of England base rate plus the mandated 8% recovery margin.
2. **Fixed Compensation Fee Application:** Explicitly apply the correct, escalating fixed compensation fee as prescribed by the legislation (£40 for debts up to £999.99, £70 for debts between £1,000 and £9,999.99, or £100 for debts £10,000 and over). *State which threshold applies.*
3. **Demand Letter Drafting:** Draft the final demand letter, professionally incorporating the calculated interest, the mandatory fixed compensation fee, and a firm final payment deadline to avoid escalation.

**Tone & Outcome Expectation:** **Authoritative, legally precise, and professionally uncompromising.** The objective is to compel immediate payment without further negotiation.