Shortened payment terms in commercial transactions.
The change of regulations concerning payment periods in commercial transactions forces entrepreneurs to verify the current method of determining the payment period for services provided and goods delivered
- payment term in commercial transactions without the right to accrue statutory interest – up to 30 days
Counterparties wishing to avoid paying statutory interest on a commercial transaction of 5% should set a payment deadline of no more than 30 days from the date of fulfilment of their performance and delivery to the debtor of an invoice or bill confirming the delivery of the goods or the performance of the service (possibly from the date of examination of the goods if applicable). Otherwise, they may be required to pay statutory interest from the 31st day to the date on which the benefit falls due.
The same sanction must be applied to a contractor who has not set a deadline for payment for a commercial transaction if payment has not been made within 30 days of the performance and delivery to the debtor of an invoice or bill confirming the delivery of the goods or the performance of the service (possibly from the date of examination of the goods if applicable).
The possibility to claim statutory interest does not apply when the debtor is a public entity which is a medical entity.
Where the debtor is a public entity (except for medical entities), the 30-day deadline is the maximum allowed for payment.
- the maximum payment term in commercial transactions in the case of the so called „payment period” asymmetric transactions – up to 60 days
In a situation where a medium, small or micro entrepreneur is on the creditor’s side in a commercial transaction and the debtor is a large entrepreneur, the payment deadline set by the parties in the commercial transaction may not exceed 60 days, calculated from the date of delivery of the invoice or bill to the debtor, confirming the delivery of goods or performance of a service. In the case of a cash benefit provided in parts, the 60-day period shall apply to the payment of each part of the benefit.
If a longer payment period is set, it will be replaced by a 60-day period by law and the creditor will be entitled to claim statutory interest for late payment in commercial transactions at a rate currently equal to 11,5 % – from 61 days to the date of payment.
- maximum payment term in symmetric trading transactions – up to 120 days
As a general rule, in commercial transactions between traders, it should not exceed 60 days, unless the parties expressly agree otherwise in the contract and provided that this agreement is not grossly unfair to the creditor.
However, if the parties do not meet the conditions for the application of the extended payment period, the creditor will be able to claim statutory interest for late payment in commercial transactions from day 61, counted from the date of delivery of the invoice or bill to the debtor.
If, on the other hand, the time limit set exceeds 120 days from the date of delivery to the debtor of an invoice or bill confirming the delivery of goods or performance of a service, the creditor may withdraw from the agreement or terminate the agreement. In such a case, the cash benefits due from the debtor for goods or services already delivered become payable within 7 days from the date of termination. If payment is not made on time, the creditor is entitled to claim statutory interest for late payment in commercial transactions from the 8th day after the date of termination.