Is there a statute of limitations for paying invoices? At times we receive invoices from a vendor that may be two years old; are we legally required to pay it?

Follow

There are state-by-state statutes of limitation on debt collectors’ ability to sue for payment after a period of time. You should be aware of your state’s statutes of limitations on business debt. A creditor (any organization that provided a good or service for you) has a right to collect funds during an allotted time, called the statute of limitations.  In many states, the statute depends on several factors, including whether you had a sealed contract with the vendor.

As long as the statute of limitations has not run out, then you must pay a vendor seeking their funds, even if an invoice was not provided promptly. Statutes of limitations are typically a few to several years, and vary by type of agreement.  For a list of the State statutes of limitation for old debts, see Bankrate.com’s table.

Have more questions? Submit a request

Comments