Sorry – I meant Special Resolution; slip-of-the-finger!
I guess the effectiveness of an early payment discount (EPD) depends on the “mix” and number of Proprietors, and the amount of the Levy Contributions.
For our Plan, the EPD meant that the usual early payers made sure that they were a min 7 calender days early, the usual on-time payers paid early, and most of the the habitually late payers paid a few days either side of the due date.
The biggest influence was on Rental Agents holding properly delegated responsibilities to directly receive their Clients' Levy Contribution Invoices and to pay those from rent receipts. These Agents typically paid on their Terms, like the end of the month after the invoice month, which put these payments typically 44 days in arrears.
A short e-mail to these Clients (our Proprietors) resulted in most Agents now paying in time for the EPD to kick-in; matter-of-fact, as of right now all 27 of my Proprietors and their Agents have paid the most recent Levies (due 1/4).
If SMIG's looking to encourage on-time payments, taking on-board scotlandx's comments about the permitted interest on arrears (actually 0.8%/mth), think about the O/C resolving to charge “administrative fees” for reminder letters issued at 7, 14, and 30 days after the Due Date for payment.
These Fees were an effective further incentive for our Plan as cumulatively they far exceed the permitted interest charge; just make sure that the Fees can be justified by the effort involved in producing the reminder letters.