How do I claim late payment penalties on an unpaid invoice?

When can late payment penalties be claimed?

Late payment penalties are not applied arbitrarily. Their application depends on precise rules laid down by the Commercial Code.

From the day after maturity

Late payment penalties are payable from the day following the due date shown on the invoice . No prior reminder is necessary: simply noting the delay is sufficient.

This principle applies to business-to-business (B2B) transactions, provided that the payment deadline is clearly indicated on the billing document.

Should penalties be specified on the invoice or contract?

Yes, to be able to claim late penalties, it is essential that they have been previously planned.

These must be set out in a contractual document: general sales conditions (GSC), accepted quotation or signed contract.

In accordance with article L441-10 of the French Commercial Code, each invoice must include :

• the interest rate applicable to late payments,

• and the amount of the fixed indemnity of €40 for collection costs.

Without this information, even if the invoice is unpaid, you risk a legitimate refusal to pay in the event of a dispute. The customer may contest the application of penalties, in the absence of proof that these conditions were part of the initial agreement.

This formalization is not required for private customers, but is recommended to As a preventive measure .

Is it necessary to send a specific reminder to claim these penalties?

Even if penalties are due automatically, there are certain steps you can take to strengthen your position, especially in the event of a dispute. Here's what you need to know about reminder forms and deadlines.

Letter, e-mail or automatic clause: what does the law say?

The law does not require a specific letter to be sent to claim late penalties. They are due by operation of law on the day following the due date, provided they have been mentioned in the contractual documents.

However, sending an e-mail or a reminder letter is still a good idea. a recommended practice to maintain customer relations and formalize payment reminders.

How many days should I allow before invoicing them?

There is no no legal deadline to be respected before charging late penalties. They can be from the first day of delay.

In practice, however, it is common practice to allow a certain period of time to give the customer a final opportunity to regularize the situation without incurring additional costs.

How do I request a late payment penalty?

To avoid any ambiguity, you need to formulate your penalty request clearly. Whether in an e-mail, a letter or an automated reminder, the message must be precise, professional and legally sound.

Examples of sentences to include in a reminder

Here are three effective formulations to include in your reminders:

• "In accordance with our general terms and conditions of sale, late payment penalties are due from [date] for an amount of [calculated amount]."

• "We remind you that late payment penalties, calculated in accordance with the legal provisions in force, have applied since [due date]."

• "To date, invoice no. [XXX] remains unpaid. Interest for late payment and a fixed indemnity of €40 are therefore payable."

Sample letter for invoicing penalties

Here's a sample letter you can use to charge late fees:

Subject: Application of late payment penalties - Invoice no. [XXX].

"Madam, Sir,

Except in the case of error or omission on our part, invoice no. [XXX], amounting to [amount] inclusive of tax, which fell due on [date], remains unpaid to this day. In accordance with article L441-10 of the French Commercial Code and our general terms and conditions of sale, we will apply late payment penalties calculated as follows:

Amount incl. VAT x annual rate x (number of days overdue / 365).

To this must be added the statutory fixed indemnity of €40 for collection costs.

We thank you for regularizing your situation as soon as possible.

Sincerely, [Name / Signature]".

Should I add the €40 lump-sum indemnity?

The lump-sum collection indemnity is a fixed sum that the creditor can claim, in addition to late payment penalties, in business-to-business relations. It is intended to compensate for the costs incurred in collecting the debt.

When is it mandatory?

The flat-rate indemnity of €40 is automatically due as soon as a late payment is noted in a commercial relationship between professionals (B2B), in accordance with Article D441-5 of the French Commercial Code .

It applies to without the need for a reminder or formal notice.

This indemnity is intended to cover collection costs incurred by the creditor. It does not concern neither private individuals nor public bodies (government agencies, local authorities), which come under a different regime.

In practice, this indemnity must appear in the general terms and conditions of sale and on the invoice to avoid any disputes.

Can it be demanded with late payment penalties?

Yes, the flat-rate indemnity of €40 is automatically added to late penalties. It must be mentioned in the General Terms and Conditions and on the invoice to be payable without discussion.

In the event of a more costly recovery, you can also claim additional compensation but this is rare and subject to assessment.

What if the customer refuses to pay the penalties?

Some customers dispute or ignore late payment penalties, even when they are legal and duly stated. Here's how to deal with this situation, without straying from the legal framework.

Legal and amicable pressure tactics

Start with follow up with the customer in a cordial manner, reminding you of payment terms and penalties. Enclose a detailed penalty statement (amount, rate, days in arrears).

At the same time, you can suspend future deliveries or services if provided for in the contract. The aim is to get the debtor to regularize his situation without resorting to litigation.

Filing for an injunction to pay

If the dialogue remains unsuccessful, you can submit a request for payment order to the appropriate court. This fast and inexpensive procedure allows you to obtain a writ of execution without a hearing .

You will need to supply a copy of the contract, invoices, reminders and penalty calculations . Once the order has been obtained, a commissioner of justice (formerly a bailiff) may proceed with the following tasks forced collection.

Save time with Hero, without waiting for delays

Claiming late payment penalties takes time and resources, and does not guarantee immediate payment. Avoid tensions and preserve your cash flow, Hero offers a simple solution: cash advance on your invoices.

You get paid quickly, even if your customer pays later. What's more, our platform helps you to manage reminders and meet deadlines effortlessly.

Claiming late fees is a right, as long as you respect the legal framework. From the very first reminder, you can point out the penalties due and clearly formalize them. In the event of refusal, there are amicable or legal solutions. Hero is your best ally for securing your collections without delay.