Your Late Payer Owes You Interest (and €40): Late Payment Explained
"Your Late Payer Owes You Interest (and €40): Late Payment Explained" is a short legal-explainer video about interest and recovery costs on late business-to-business invoices. It explains EU statutory interest, the fixed €40 claim, payment deadlines and daily interest, and briefly notes similar UK rules.
This video is general information, not legal advice. Late-payment rules apply to business-to-business transactions and vary by country — speak to a qualified lawyer about your situation.
Key takeaways
- Late EU B2B invoices automatically earn statutory interest at the ECB reference rate plus at least 8 percentage points.
- Creditors can claim €40 per late invoice for recovery costs, plus reasonable extra costs.
- Without agreed payment terms, the default is 30 days; terms over 60 days must be expressly agreed and not grossly unfair.
- Interest keeps adding up every day the invoice remains unpaid.
What this video covers
Can you charge interest on a late invoice? This video explains the EU rules for late business-to-business payments while a lawyer chases Bruno to a superyacht, with a jet ski, fishing rod and telenovela twist along the way. First, it explains that late B2B invoices automatically earn statutory interest at the ECB reference rate plus at least 8 percentage points. Second, a creditor can also claim a fixed €40 per late invoice to cover recovery costs, plus reasonable extra costs. The payment-term rules set a default of 30 days when no term has been agreed. Terms longer than 60 days must be expressly agreed and must not be grossly unfair. Interest then keeps adding up every day the invoice stays unpaid. After the yacht plot twist, the video closes with a practical tip: put payment terms and late-payment conditions on every invoice. The description also notes similar UK rules: base rate plus 8% and fixed compensation of £40 to £100 per invoice. It links to a guide with EU and UK rules, a worked calculation and a free late payment calculator. The video provides general information, not legal advice. These rules apply to B2B transactions and vary by country; speak to a qualified lawyer about your situation.
