Paying in more than 30 days will be sanctioned: the EU opens for the first time to fining delinquent companies

This regulation, which is expected to be approved, will significantly modify payment terms between companies.

This new regulation is the reduction of the payment period for companies to a maximum of 30 days, as opposed to the 60 days established previously.

The Regulation establishes that each Member State will designate an authority responsible for ensuring compliance with payment deadlines. These authorities may impose fines, sanctions and precautionary measures on violators, in addition to carrying out inspections without prior notice.

Another of the most notable points is the compensation for recovery costs, the debtor must pay a fixed amount of 50 euros for each commercial transaction when late payment interest accrues.

“This proposal puts an end to the excessive injustice that occurs when the creditor himself must bear the late payment interest generated by the delay in payment by the debtor,” says Antoni Cañete, president of the Multisectorial Platform against Late Payments (PMcM). ).

Late payment not only hinders competitiveness, but also increases uncertainty and reduces the participation of SMEs in public procurement. Furthermore, it increases working capital needs, costs due to time spent chasing debtors, and financing costs.

The Regulation also establishes illegal contractual practices, such as setting payment deadlines that violate the law, limiting the rights of the creditor or intentionally delaying the sending of the invoice.. These practices will be null and void.

The European Commission's initiative will allow the payment of compensatory fees and interest to be legally automatic in the event of late payment and will facilitate access to effective redress through mediation, which is expected to significantly reduce litigation costs.