Terminating contract early due to late payment

[anthony]

have a read of this: The Late Payment of Commercial Debts Regulations 2013 - Pay on Time

Will give you all the info you need to know on late payments etc...

[Safe Collections]

Alarm bells should be ringing for you at this point as an unannounced under-payment and talk of cashflow problems is never a good sign. We definitely share your concern as to the solvency of the client and would echo other posters who have encouraged you to start planning for a swift exit.

In regards to your question:

Also my question is, if client pays 2 days after it was due, can i still terminate my contract after I get the money?

Theoretically we would say that you probably can, they have already breached the contract so you would be within your rights to terminate in our opinion. It is unlikely the rate you are on reflects the risks of supplying a business with poor cashflow so it would be disadvantageous to YourCo to continue. Please note, this isn't legal advice

With regard to:

If you need to go down the line of legally demanding your money, look up issuing a statutory demand.

You need to be sure that your claim is 100% free of any issues or queries, be they real or imagined. If you issue a Statutory Demand and the claim has a query (or the debtor creates a convincing query) it is entirely possible for the petitioner (you) to be held liable for the debtors costs if they successfully challenge the demand.

Statutory Demands are a precursor to Insolvency Proceedings that should be used in specific circumstances, they are not a magic bullet for getting paid.