According to the European Commission, no less than one bankruptcy in four is due to non-compliance with payment deadlines, and no less than one invoice in two is paid late at best (when it is paid at all).
To remedy this situation, the Commission intends to revise the 2011 directive that sets the benchmark in this area, and to adopt a regulation (immediately applicable within the European Union) designed to harmonize and simplify payment terms for commercial transactions, and to provide better protection for creditors.
It has to be said that the rules laid down by the 2011 Directive, and set out in Article L.441-10 of our national Commercial Code, are not always easy to understand.
30 days, 45 days, 60 days? from the date of issue of the invoice? from the end of the month? from the date of receipt of the goods? what about the derogation periods applicable to the products involved in the transaction?
All these adjustments to the principle of a uniform payment period, although timidly called for by the 2011 Directive, are nuances that add complexity to the issue of payment periods.
As it stands, a new regulation aims to introduce a single payment period of 30 days for all commercial transactions not subject to a shorter payment period under national law – in which case, this period will continue to apply.
The European Commission also intends to provide greater protection for creditors of sums of money, notably by making the payment of interest compulsory and automatic. Creditors would no longer be allowed to waive their right to claim interest.
In addition, the interest rate would be set at the ECB reference rate plus 8%, and the lump-sum compensation reassessed at 50 euros – instead of the current 40 euros.
It is therefore easy to understand why this project has aroused the concern and/or anger of trade federations – particularly in sectors benefiting from longer derogation periods, such as toys and books – who fear that the main effect will be to asphyxiate retailers.
This far-reaching project is likely to be the subject of bitter negotiations in the weeks ahead. It remains to be seen whether the text adopted will live up to the ambition of the European Commission’s project…
