In B2B commercial debt collection, interest on late payment is not just permissible — it's a statutory right in most jurisdictions. Understanding these rights can significantly increase recovery amounts.
The EU Late Payment Directive (2011/7/EU) grants creditors automatic entitlement to interest at the ECB reference rate + 8 percentage points on all B2B transactions. No contractual provision required. Additionally, creditors receive EUR 40 fixed compensation per invoice for recovery costs.
Germany: ECB + 9% (BGB § 288) — among Europe's highest. UK: Bank of England base rate + 8%. France: ECB + 10% for first 30 days of delay, then ECB + 12%. Spain: follows EU directive minimum (ECB + 8%).
Where the contract specifies a higher interest rate, that rate applies (subject to national usury limits). Professional agencies calculate and claim contractual interest as part of the recovery.
In addition to interest, creditors can typically recover reasonable collection costs from the debtor. In Germany, statutory Inkassokosten are specifically recoverable. Across the EU, the EUR 40 fixed compensation is a minimum — higher costs can be claimed if documented.
Interest and cost recovery can make professional collection cost-neutral or even profitable for the creditor. The EUR 40 per-invoice compensation alone can cover agency commission on smaller claims.
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