What Is Statutory Commercial Interest?

A statutory commercial interest is a statutory fee charged for late payment. The interest rate is based on the law and can vary per country and region. The interest is higher than the legal consumer interest rate and only applies to commercial transactions between businesses or with government institutions. It provides companies with a legal instrument to enforce payment and ensures that the risk of late payments is shared more fairly between trading parties. This can help improve business cash flow and prevent bankruptcies caused by payment problems.More info :https://www.credifin-nederland.nl/wettelijke-rente/

In the Netherlands the statutory commercial interest is currently 8% plus the Bank of England base rate for business-to-business transactions. This is higher than the legally required consumer interest rate, which is 2%.

Decoding Statutory Commercial Interest: A Deep Dive into Legal Dynamics

You can only charge statutory interest if the contract, your Invoices, or other commercial documentation expressly reserves the right to do so. Otherwise, you are only entitled to charge contractual interest.

As a default rule, a payment is considered late after 30 days for public authorities and 60 days for business transactions (unless parties have agreed a longer term which is not grossly unfair to you). The period is counted from when the customer receives your invoice or you deliver the goods or provide the service.

You can also add debt recovery costs to your statutory commercial interest. This will increase the total amount payable on your claim. You can then add this to your principal sum and send a new invoice including these additional costs.