Manage late payments
Late-payment penalties and the €40 fixed fee: how do they work?
In business relationships governed by French law, late payment may trigger penalties and a fixed €40 recovery-cost fee. Application depends on compliant invoices and payment terms.
When do penalties start?
The French Commercial Code provides that penalties are due without a reminder from the day after the payment date shown on the invoice. Payment terms must state the method and rate.
- —Identify the applicable due date
- —Calculate the actual delay
- —Retain a breakdown
Which rate applies?
In the absence of a contractual rate, the statutory formula refers to the European Central Bank refinancing rate plus ten percentage points. A contractual rate cannot be lower than three times the French statutory interest rate. Check the current text for the relevant period.
The €40 fixed fee
The fee is automatically due to a professional creditor for recovery costs and must be mentioned in payment terms and on the invoice. Additional justified costs may sometimes be claimed, subject to legal exceptions.
- —Do not apply these B2B rules mechanically to consumers
- —Check the parties and applicable law
Conclusion
These sums address the cost of delay but do not replace a compliant invoice or active case management.