Fixed recovery fee (€40)

The flat-rate collection fee is a fixed amount of €40, payable by a business customer for each late payment. It is in addition to late-payment interest. If the actual collection costs are higher, an additional fee may be charged upon presentation of supporting documentation.

Example

A customer pays three overdue invoices. The supplier may claim 3 × 40 € = 120 € in compensation, in addition to late payment penalties.

Why It’s Important

It must be included on invoices and in the Terms and Conditions. It covers collection costs and reminds the customer that late payments incur a fee.

For more information: Late Payments: Calculation and Billing, and the Excel Kit for Penalties and Late Payment Interest.

See also: late payment interest, unpaid invoice, formal notice.