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What are the payment deadlines for a private entity?

The payment deadline for entities other than public is regulated by the commercial code, L441-6.

From January 1, 2009, the payment period will be a maximum of 45 days at the end of the month or 60 days from the date of the invoice creation.

The "payment method" choice in our order forms allows you to select the method and delivery time you want. Deferred payment is subjected to acceptance by our financial department, the rule being cash payment should be required upon ordering tailor-made products.

Exceeding the payment deadline entitles the contract holder or subcontractor automatically and without further formality to the benefit of default interest, from the day following the expiration of the deadline. From January 1, 2009, the rate of late payment penalties will be equal to the interest rate applied by the ECB to its most recent refinancing operation increased by 10 percentage points.

Changes to be expected on January 1 , 2013

Decree No. 2012-1115 of October 2, 2012 sets a fixed compensation of 40 euros due by professionals who do not respect payment deadlines. Applicable from January 1, 2013, this compensation is intended to cover recovery costs. It is cumulative with late payment penalties.

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Administrative fine

Law No. 2014-344 of March 17, 2014 relating to consumption also makes it possible to sanction new practices. Failure to comply with the terms of calculation of payment deadlines agreed between the parties is now punishable by an administrative fine, the amount of which cannot exceed €75,000 for a natural person and €375,000 for a legal entity. Under the same sanctions, any clauses or practices having the effect of improperly delaying the starting point of payment deadlines (“hidden deadlines” are now prohibited).

Finally, Law No. 2015-990 of August 6, 2015 for growth, activity and equal economic opportunities gives authority to DGCCRF agents to control and sanction public companies not respecting the maximum payment deadline set. by article 1-3° of decree no. 2013-269 of March 29, 2013 (i.e. 60 days from the date of receipt of the payment request by the public company). The maximum fine is 375,000 euros.

DGCCRF: Payment deadlines

Fine for non-payment of late payment penalties

The DGCCRF monitors and sanctions non-compliance with payment deadlines and penalties and can impose an administrative fine the amount of which cannot exceed €75,000 for a natural person and €2,000,000 for a legal entity.

DGCCRF: Payment deadlines