Lobbying on Revision of EU rules on late payments (Late Payments Directive)

Revision of EU rules on late payments (Late Payments Directive)

Single market

EU rules on late payments have triggered a reduction in payment delays. However, still more than 60% of businesses in the EU are not paid on time and small and medium-sized enterprises are most affected. The initiative will provide relief to SMEs by revising existing EU payment rules based on available and upcoming evidence to promote a definitive shift towards a culture of “prompt payment".

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Public consultation

ID: 13665

Lobbying Activity

75 responses

BusinessEurope opposes strict payment caps in business-to-business transactions

BUSINESSEUROPE, 17 Mar 2023

BusinessEurope requests preservation of contractual freedom in B2B relations. They oppose inspection bodies with sanctioning powers and favor maintaining negotiation flexibility over mandatory 30-day payment caps.

This preserves members' ability to negotiate payment terms suited to different sectors.

SMEs lose stronger protections against extended payment delays from larger trading partners.

German Industry Body Opposes Rigid 30-Day EU Payment Limits

Bundesverband der Deutschen Industrie e.V., 9 Nov 2023

The BDI requests that companies remain able to negotiate payment terms exceeding 30 days. They also oppose the ban on verification procedures and the creation of new enforcement authorities.

Industrial firms would maintain flexibility over their cash flow and preserve existing financing models.

Small suppliers remain vulnerable to extended payment cycles that can cause financial distress.

EuroCommerce Demands Radical Review of Mandatory Payment Deadlines

EuroCommerce, 9 Nov 2023

EuroCommerce requests a radical reconsideration of the proposal to re-introduce the freedom to negotiate payment terms. They argue the one-size-fits-all 30-day cap ignores complex supply chain relationships and seasonal needs.

Avoiding these rules prevents a massive 150 billion euro financing gap for retailers.

Consumers could face increased costs and less product variety if flexibility is removed.

EuroCommerce Urges EU to Maintain Flexible Business Payment Terms

EuroCommerce, 17 Mar 2023

EuroCommerce requests a distinction between late payments and negotiated contractual terms. They argue a one-size-fits-all approach harms competitiveness and reduces sector efficiency.

Retailers would maintain the financial flexibility needed to manage seasonal stock and cashflow.

Consumers would face reduced product choice and higher prices due to limited retailer financing.

German Industry Chamber Rejects Strict EU Late Payment Rules

Deutsche Industrie- und Handelskammer, 30 Oct 2023

The organization rejects mandatory payment periods and the creation of new enforcement authorities. They argue that prohibiting the waiver of interest violates contractual freedom.

Rejecting the proposal avoids new reporting duties and preserves flexibility for seasonal businesses.

Small suppliers continue to face financial instability without legally enforced, shorter payment terms.

DIHK urges EU to avoid bureaucracy in payment rules

Deutsche Industrie- und Handelskammer, 17 Mar 2023

DIHK opposes an EU observatory and administrative sanctions to avoid unnecessary bureaucracy. They support clearer definitions of unfair practices and faster judicial procedures. They also suggest expanding rules to cover private consumer debt.

This would prevent businesses from facing costly reporting duties and new administrative hurdles.

Debtors would lose the financial benefit of treating unpaid invoices as cheap loans.

Austrian Economic Chamber warns against rigid 30-day payment limits

Wirtschaftskammer Österreich, 9 Nov 2023

The organization argues for preserving the freedom to negotiate payment terms individually between businesses rather than imposing a strict 30-day limit. They also oppose the creation of new enforcement authorities, suggesting the existing court system is sufficient for resolving disputes.

Maintaining flexible payment rules allows wholesalers to continue providing essential financing to small retailers and avoids new administrative burdens.

Small retailers face potential bankruptcy or liquidity shortages if traditional long-term credit from suppliers is banned.

MedTech Europe urges tougher enforcement of EU late payment rules

MedTech Europe, 17 Mar 2023

MedTech Europe requests better enforcement against state institutions and a mechanism allowing smaller firms to transfer overdue debt to a debt bank. They also propose clear invoicing criteria and allowing companies to defer VAT payments on unpaid invoices.

This would reduce the financial burden on companies currently forced to subsidize struggling healthcare systems through long delays.

Member states and public healthcare providers would lose the flexibility to use payment delays to manage budget shortfalls.

Large French firms urge EU to reform payment calculations

Association Française des Entreprises Privées / French Association of Large Companies, 17 Mar 2023

AFEP recommends calculating payment deadlines from invoice receipt rather than the issuance date. They also support creating national enforcement authorities and a European Observatory of Payments.

This shift would protect large companies from penalties for administrative delays in mailing.

Small suppliers could face longer payment cycles if the legal countdown starts later.

German insurers reject strict 30-day payment limit proposal

Gesamtverband der Deutschen Versicherungswirtschaft e.V., 7 Nov 2023

GDV opposes replacing the current directive with a mandatory 30-day payment cap. They argue these strict instruments disproportionately interfere with the freedom of contract. Payment periods should reflect market realities and industry-specific characteristics instead.

Maintaining current rules avoids legal conflicts that would restrict their credit insurance products.

Fragile small businesses risk insolvency due to sudden liquidity problems and restricted credit.

Danish Chamber of Commerce opposes mandatory 30-day payment cap

The Danish Chamber of Commerce, 9 Nov 2023

The organization opposes the mandatory 30-day payment period to protect contractual freedom. They suggest focusing on enforcing existing rules in public sector transactions. They also warn that the proposal ignores the liquidity needs of small buyers.

This allows businesses to maintain cheap supplier financing and avoid administrative costs.

Small suppliers may face continued delays without the proposed mandatory payment limits.

Danish Chamber Warns Against Mandatory EU Payment Rules

The Danish Chamber of Commerce, 17 Mar 2023

The Chamber requests that the Commission protects the freedom of contract as the basis for competition. They urge officials not to introduce mandatory maximum payment terms or complex regulatory schemes.

Companies would retain the flexibility to negotiate credit terms essential for managing liquidity crises.

Small firms lose regulatory protection against being forced into long payment wait times.

European ceramic industry warns 30-day payment rule hurts exporters

European Ceramic Industry Association, 8 Nov 2023

Cerame-Unie calls for more flexibility for operators conducting transactions with extra-EU partners. They suggest adapting payment terms to the average production to invoice lead time.

Maintaining longer terms avoids cash flow crises caused by slow international payments.

Domestic suppliers face delayed payments if sector-specific extensions are granted to producers.

German Retail Federation Urges Preservation of Flexible Payment Deadlines

Handelsverband Deutschland, 9 Nov 2023

HDE requests the possibility to continue negotiating payment terms of up to sixty days. They reject new national enforcement authorities with far-reaching powers like unannounced inspections.

This allows retailers to maintain liquidity while compensating for high capital binding costs.

Consumers face potentially higher prices and a reduced selection of products in stores.

Wiener Stadtwerke warns against shortening 30-day payment deadline

WIENER STADTWERKE GmbH, 17 Mar 2023

The organization requests that the 30-day payment period is not shortened. They argue that large companies need sufficient time for internal audits and multi-person approvals.

This would allow the firm to avoid restructuring its complex internal payment processes.

Confcommercio warns against rigid 30-day payment limits

CONFCOMMERCIO - IMPRESE PER L'ITALIA, 9 Nov 2023

Fixed payment terms excessively limit contractual autonomy and specific sector needs. Flexibility in payments remains the best solution to ensure management for stability. Strict 30-day limits are imperative only for transactions with the public administration.

Retailers maintain financial stability by matching payments to their actual sales cycles.

Smaller retailers face financial strain when forced to pay for unsold inventory.

Confcommercio rejects rigid EU limits on business payment terms

CONFCOMMERCIO - IMPRESE PER L'ITALIA, 16 Mar 2023

The organization opposes new laws that impose rigid deadlines, arguing they restrict negotiated freedoms. They prefer voluntary measures and rewards for good behavior over mandatory sanctions.

This allows their members to preserve cash flow by delaying payments to suppliers.

Creditors lose guaranteed timely payments and legal leverage to recover debts from buyers.

Deutsches Aktieninstitut opposes mandatory EU late payment limits

Deutsches Aktieninstitut, 26 Oct 2023

The group rejects a mandatory 30-day payment term and automatic interest. They advocate for contractual flexibility to respect individual business needs.

Companies would avoid administrative burdens and maintain flexible business financing.

Small suppliers lose predictable cash flow when payments are significantly delayed.

Consultation response

Confédération des Petites et Moyennes Entreprises, 9 Nov 2023

La proposition de règlement relatif à la lutte contre les retards de paiement, présentée par le Commissaire européen chargé du marché intérieur, Monsieur Thierry Breton, le 12 septembre 2023, suscite des inquiétudes majeures au sein de la Confédération des PME. Nous estimons que réduire les délais…

Austrian Trade Union Federation backs stricter EU late payment rules

Österreichischer Gewerkschaftsbund, 6 Feb 2023

The ÖGB supports the goal of encouraging faster payment of outstanding invoices to prevent unnecessary liquidity issues. They emphasize addressing power imbalances where large firms impose unfavorable payment terms on smaller suppliers.

Stricter rules protect workers by preventing job losses linked to business insolvencies.

Large companies would lose access to free financing gained by delaying payments.

Confartigianato Imprese supports strict 30-day EU payment limit

Confartigianato Imprese, 7 Nov 2023

The group supports a mandatory 30-day deadline without loopholes for large firms. They suggest excluding persistent late payers from public contracts and offsetting tax debts.

Fixed payment terms would secure cash flow and reduce bankruptcy risks for small businesses.

Large companies lose the unfair advantage of using delayed payments as interest-free credit.

Confartigianato Imprese Urges Tougher EU Late Payment Rules

Confartigianato Imprese, 3 Feb 2023

The group proposes mandatory deadlines for public bodies and offsetting unpaid claims against tax debts. They also suggest a European platform for reputational feedback on debtors.

SMEs would avoid financial strain and gain protection from dominant business partners.

Large companies and public entities lose the benefit of using delays as free liquidity.

European Builders Confederation backs new EU late payment rules

European Builders Confederation, 9 Nov 2023

EBC supports replacing the directive with a regulation and implementing a mandatory 30-day payment cap. They request stronger enforcement and independent authorities to oversee public procurement contracts.

Construction small businesses would see improved cash flow and fairer bargaining power.

Large contractors and public authorities lose the ability to delay payments through unfair contracts.

France Assureurs warns against rigid 30-day payment limits

Fédération Française de l'Assurance, 7 Nov 2023

France Assureurs opposes the mandatory 30-day cap, calling it a violation of entrepreneurial freedom. They suggest focusing on stronger penalties and improved legal remedies instead.

Preserving flexible payment windows reduces the risk of widespread business insolvencies.

Buying companies face liquidity shortages and may shift trade outside the EU.

European Builders Confederation Demands Strict 30-Day Payment Limit

European Builders Confederation, 17 Mar 2023

EBC requests a strict 30-day payment limit and the removal of vague exceptions. They also demand mandatory interest charges and stronger enforcement against late payers.

Construction SMEs would significantly improve their liquidity and reduce bankruptcies.

Large firms lose the ability to use delayed payments as interest-free credit.

German construction industry urges deletion of subcontractor payment proof

Hauptverband der Deutschen Bauindustrie, 23 Oct 2023

The association demands the deletion of requirements to prove subcontractor payments before being paid by public authorities. They also oppose the creation of new national enforcement bodies. The group calls for simple, clear, and effective rules for all market participants.

Removing these requirements avoids administrative delays and preserves the liquidity of construction firms.

Subcontractors lose a new mechanism designed to ensure payments are passed down the chain.

German agricultural cooperatives reject rigid 30-day payment deadline

Deutscher Raiffeisenverband e.V., 9 Nov 2023

The association opposes rigid 30-day payment deadlines, warning they could trigger faster insolvencies. They advocate for flexible rules that respect seasonal agricultural production cycles and traditional payment arrangements.

Preserving flexible payment terms helps agricultural businesses avoid liquidity crises during seasonal cycles.

Small farmers and cooperatives face higher bankruptcy risks due to inflexible payment schedules.

Italian SME group CNA supports 30-day late payment limit

Confederazione Nazionale dell'Artigianato e della Piccola e Media Impresa, 7 Nov 2023

The group supports a 30-day maximum payment period and uniform rules for all business transactions. They also propose creating a public register of bad payers to help small firms check customer creditworthiness.

This would prevent liquidity crises and reduce the financial burden on small businesses.

Large companies lose the ability to exploit their bargaining power to delay payments.

Consultation response

Bundesarbeitskammer Österreich, 20 Feb 2023

Die BAK begrüßt diese Zielsetzung der geplanten Aktualisierung der Zahlungsverzugsrichtlinie: Die unverzügliche Begleichung ausständiger Zahlungen verhindert, dass unnötige Liquiditätsschwierigkeiten insbesondere bei kleineren und mittelständischen Unternehmen auftreten, die schlimmstenfalls in der…

European Family Businesses back review of EU late payment rules

European Family Businesses, 14 Mar 2023

The organization supports the review to ensure companies respect payment rules and avoid delays. They state timely payments are crucial for businesses to survive economic turbulence.

Reducing payment delays would decrease bankruptcy rates and boost family firm competitiveness.

Companies that currently improve their own liquidity by delaying payments to their providers.

German construction industry urges flexibility in EU payment rules

Zentralverband Deutsches Baugewerbe, 26 Oct 2023

ZDB supports the basic 30-day payment limit for business and public contracts. They insist on maintaining existing national verification procedures for construction work contracts. The association rejects requirements for contractors to prove payments to their subcontractors.

This would prevent high administrative costs and avoid complex reporting for contractors.

Subcontractors lose the proposed protection ensuring payments are passed down the supply chain.

Consultation response

Association française des sociétés Financières, 8 Nov 2023

The ASF (Association française des sociétés financières) is the French professional association representing 251 French financial and credit institutions, specialized banks, investment firms, payment institutions and electronic money institutions. Their activities are all regulated and supervised…

French finance industry backs EU ban on payment restrictions

Association française des sociétés Financières, 15 Mar 2023

The association supports strict caps on payment terms and automatic interest penalties. They want a ban on contract clauses that stop businesses from selling their invoices. They also suggest heavy administrative fines for chronic late payers.

Banning restrictions on invoice transfers would significantly expand the European factoring market.

Large firms would lose the power to delay payments to smaller suppliers.

Czech Chamber of Commerce warns against EU payment term limits

Hospodářská komora České republiky, 9 Nov 2023

The organization opposes a strict 30-day cap, calling it an "excessive interference with contractual freedom." They prefer updating the existing Directive to allow national flexibility instead of a Regulation. They also request a transition period of "at least 2 years" for business planning.

Maintaining flexible terms provides companies with essential "access to interest-free financing" instead of bank loans.

EU suppliers risk losing customers to "non-European suppliers" who can offer more flexible payment terms.

German tax advisors support mandatory 30-day EU payment rules

Deutscher Steuerberaterverband e.V., 9 Nov 2023

The association supports a 30-day payment limit to provide planning security for cross-border businesses. They recommend banning contractual clauses that prevent companies from transferring unpaid invoices to others. Qualified tax advisors should be included as independent mediators for solving payment disputes efficiently.

Granting tax advisors a mediation role creates new professional opportunities for their members.

Dominant clients lose the ability to restrict their suppliers from using invoice factoring.

Consultation response

ŠKODA TRANSPORTATION, 9 Feb 2023

The comments relates to the part B of the Call for Evidence (Objectives and Policy Options): - a support to the setting of fairer payment terms in B2B transactions - though the first step shall be a soft law such as codes of practices or guidelines - thus an extension of the Directive to the B2B…

Consultation response

BFF Banking Group, 17 Mar 2023

BFF is closely following the European Commission's activities on Late Payment Directive and welcome the Commission's efforts to update its provisions. For this reason, BFF wishes to provide feedback for the revision of the Directive (2011/7/EU), here attached.

Consultation response

Cámara Oficial de Comercio, Industria, Servicios y Navegación de España, 17 Mar 2023

Estimado/a Sr./a.: La Cámara de Comercio de España, como representante del interés general del país y de las empresas españolas, considera oportuno actualizar la normativa europea relativa a la morosidad y los retrasos en los pagos. Estos dos fenómenos suponen un lastre para las empresas españolas,…

French Building Federation urges phased rollout of payment rules

Fédération Française du Bâtiment, 9 Nov 2023

The FFB proposes a phased implementation requiring major clients to pay faster before suppliers. They fear the regulation will otherwise cause severe cash flow problems for builders.

Shorter payment times would stop builders from subsidizing their clients' cash flows.

Upstream material suppliers would wait longer for payments during the phased transition.

Consultation response

International Credit Insurance & Surety Association, 7 Nov 2023

The International Credit Insurance and Surety Association (ICISA) is the global trade association for trade credit insurers, sureties and their reinsurers. Trade credit insurance is utilised by business of all sizes and across all sectors as a means to mitigate the significant risks they face from…

CEETTAR urges 30-day payment cap to protect rural contractors

Confédération Européenne des Entrepreneurs de Travaux Techniques Agricoles, Ruraux et Forestiers/ European Organisation of Agricultural, Rural and Forestry Contractors / Europäischer Zentralverband der Lohnunternehmer, 14 Mar 2023

The group proposes a 30-day payment cap for public procurement supply chains. They also want rules to target large companies with excessive bargaining power.

Contractors would avoid financing large corporations and better manage their own operating costs.

Large firms and local governments lose the benefit of holding onto subcontractor funds.