New Rules On Combating Late Payment In Commercial Transactions

Despite the adoption and implementation of Directive 2000/35/EC on combating late payment in commercial transactions, many payments in commercial transactions between economic operators and public authorities are made later than agreed in the contract or the general conditions. Even after the goods have been delivered or the services provided, many invoices remain unpaid well past their due date. Such late payment adversely affects liquidity and complicates the financial management of undertakings. It also undermines their competitiveness and profitability, as creditors need to obtain external financing due to late payment. The risk of such adverse effects increases sharply during an economic downturn when access to financing is more difficult.