The Late Payment Directive (sen betalings-direktivet)
Also known as late payment directive, directive 2011/7/eu, direktiv 2011/7/eu, late payment directive
The EU directive on combating late payment in commercial transactions — this is where the compensation fee and the interest margin come from.
In practice
The directive is the reason you may charge a compensation fee at all in business-to-business relationships. It is implemented in the Danish Renteloven (the Danish Interest Act), where the amount is set at 310 kr.
It is also the basis for the interest margin of 8 percentage points. The purpose is political: late payment must not be allowed to pay off as a form of free financing.
Where it commonly goes wrong
- Assuming it is a Danish peculiarity. It applies across the whole of the EU — which means you can also claim compensation from foreign business customers.