Businesses demanding payment the same day the invoice is issued - legality?

Margj63

We run a small business, which has temporarily closed and we have received the grant of £10,000 from the government.
Obviously, we are trying to budget as we have no idea how long this crisis will last.
What are the legal implications for businesses issuing invoices and expecting them to be paid the same day?
We have had 2 invoices today, one for the building insurance on the property we rent and another one.
Both state that payment is due today.
Because we hadn't paid the bill for the insurance until after 6pm today, (the landlord wouldnt have seen the transfer) the landlord rang up and demanded payment, stating we know you have had the grant and we know what it's for! 

Jeremy535897

Presumably the building insurance was renewable on a date that you were fully aware of? Most insurance is payable on or before renewal date. 

Margj63

We weren't aware it was due as last year the invoice wasn't issued to us until June. 
Can a business issue an invoice and expect it to be paid the same day?

Thrugelmir

Cashflow is difficult for everyone. Stress levels are high. Don't take it personally. There'll be others taking advantage unfortunately. 

Jeremy535897

If it wasn't legal to issue an insurance bill and expect it to be paid the same day, there would be millions more uninsured drivers. When you shop at a supermarket you don't expect 30 days credit from them. Every contract is different. There are certain consumer protections with cooling off periods, but not business to business.

I have found agents and landlords notoriously slow to pass on insurance bills to tenants. So long as the landlord or agent pays the insurance, the tenant doesn't object to the free credit. Ideally they should pass them on to the tenant as soon as they receive them, and that is what has happened in these cash deprived times. A business minded tenant knows the insurance renewal date, and should ask the landlord or agent for the bill in advance of the due date. It is in neither the landlord's nor the tenant's interests to allow the insurance to lapse.

Undervalued

Margj63 said:

We weren't aware it was due as last year the invoice wasn't issued to us until June. 
Can a business issue an invoice and expect it to be paid the same day?

Yes. Almost certainly your lease will say something about reimbursing the landlord for expenses (such as insurance) on demand. The fact he was a bit slow asking last year doesn't mean he has to be equally slow this year!

Grumpy_chap

For both the invoices you have received, one for building insurance and the other invoice, the time to pay will be as per the agreement you have in place.  That is not changed by coronavirus.  Obviously, if one is for insurance and the premium is due then you would want to pay promptly to ensure that cover remains in force on a continuous basis throughout.  If the insurance is not due for another week or so, then it might be less urgent.

Sachs

Its not illegal for them to demand immediate repayment. Its also not illegal for you to delay paying them. It sounds as though the landlord pays insurance for the building you are in and you are required to reimburse him. When you pay him in entirely a matter for you until such time that he takes you to court, just like any other debt. If he is waiting for the payment from you before he renews the insurance you are of course uninsured on a presumably empty building and if you need to make a claim its going to be one hell of a mess if the insurance is lapsed with presumably both of you pointing the finger of blame at each other.

The terms of your payment will be in your lease and breaching of those terms is a civil matter not a criminal one.