Guyader Avocat · Debt recovery in France
A French business customer has not paid on time? Calculate the late-payment interest and fixed compensation that French law lets you claim.
- ECB rates half-year by half-year since 2013
- Based on Article L. 441-10 of the French Commercial Code
- Statutory floor for contractual rates checked
Amount to claim on top of the invoice
Simple interest on a 365-day basis, using the rate in force on 1 January for the first half-year and on 1 July for the second. Where actual recovery costs exceed EUR 40, additional compensation may be claimed on proof.
Breakdown by half-year
The rate changes every six months: each period is computed at its own rate.
| Period | Days | Rate | Interest |
|---|
Applicable rates since 2013
| Half-year | ECB reference rate | Late-payment rate |
|---|
Rate of the European Central Bank’s main refinancing operations in force on 1 January or 1 July, plus 10 percentage points.
A French customer is not paying?
We send the formal notice, file for a payment order or interim payment and recover the debt, in France and abroad. Reply within 24 working hours. Or write directly to guyader@guyader-avocat.fr.
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How the calculation works
The rate. Unless the terms and conditions provide otherwise, the late-payment rate is the rate applied by the European Central Bank to its most recent refinancing operation, plus 10 percentage points (French Commercial Code, Art. L. 441-10). The rate in force on 1 January applies to the first half of the year, the rate in force on 1 July to the second.
Contractual rates. The parties may agree another rate, but it cannot be lower than three times the French legal interest rate. If the rate entered is lower, the calculator applies that floor and flags it.
The period. Interest is payable without any reminder. It runs from the day after the due date until the payment date, as simple interest on a 365-day basis, half-year by half-year.
Fixed compensation. A business that pays late also owes fixed compensation of EUR 40 for recovery costs, (Arts L. 441-10 and D. 441-5). The Court of Justice of the European Union has held that this amount is due for each commercial transaction evidenced by an invoice, even where several invoices are claimed together (CJEU, 20 October 2022, C-585/20, BFF Finance Iberia). Additional compensation may be claimed, on proof, where the costs incurred are higher.
Insolvency proceedings. The creditor cannot claim this compensation where the opening of safeguard, receivership or liquidation proceedings prohibits payment of the debt when due.
Frequently asked questions
Is a formal notice needed for interest to start running?
No. Between businesses, late-payment interest is due automatically from the day after the due date, without any reminder. A formal notice remains useful to document the claim and prepare proceedings.
Is interest due if the invoice does not mention it?
Yes. Payment terms and the late-payment rate must appear on the invoice and in the terms and conditions, but omitting them does not prevent the creditor from claiming interest at the statutory rate.
What payment terms apply between businesses in France?
Absent agreement, payment is due thirty days after receipt of the goods or performance of the service. Agreed terms cannot exceed sixty days from the invoice date or, if the parties so provide, forty-five days end of month, subject to special rules in some sectors.
Can more than EUR 40 in recovery costs be claimed?
Yes, where the costs actually incurred exceed that amount, on proof. The EUR 40 is a fixed minimum, due for each invoice paid late.
Does the calculation apply to consumers or public bodies?
No. It covers transactions between businesses. Late payment by consumers follows other rules, and public purchasers are subject to a specific regime under the French Public Procurement Code.
Sources: French Commercial Code, Arts L. 441-10 and D. 441-5; Directive 2011/7/EU of 16 February 2011 on combating late payment in commercial transactions; CJEU, 20 October 2022, C-585/20; European Central Bank, key interest rates; French orders setting the legal interest rate. Independent estimate by Guyader Avocat. General information, not legal advice for your situation.