Damaging late payment culture for SMEs to end on 16 March

Wednesday March 13th, 2013

Government Opportunities (GO) By 16th March 2013 Member States will need to have integrated the revised Late Payments Directive into their national law.

The European Union adopted Directive 2011/7/EU to combat late payments in commercial transactions to prevent small and medium sized enterprises (SMEs) going bankrupt as their invoices are not paid. Therefore stalling economic growth.

The law obliges public authorities to pay for goods and services within 30 calendar days or, in very exceptional circumstances, within 60 days. Businesses should pay their invoices within 60 calendar days, unless they expressly agree otherwise and if it is not grossly unfair to the creditor.

European Commission, Vice President Antonio Tajani, Commissioner for Industry and Entrepreneurship, said: “SMEs find it particularly difficult to stand up for their right to prompt payment. Late payments mean SMEs lose time and money, and disputes can sour relations with customers. This damaging late payment culture has to end. It is now time for Member States to implement the Late Payments Directive into their national law – giving SMEs the vital support they need in these difficult times and helping them fulfil their key role in European job creation.”

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