Legal interest rate considerably higher than the market interest rate

Upon delay of payment, the debtor shall pay default interest in the amount of 9 per cent above the base interest rate but the creditor has the right to explicitly reserve the right to claim further damages.

Starting from the due dates the debtor will receive a calculation of the legal default interest which is very high compared to the actual low market interest rate.

Therefore we need the due dates and the reminders for each invoice.

Especially in case where the collection takes place at the end of the limitation periods the occured costs are relatively high compared to the main claim and debtor are appalled about this what they consider to be a penalty.

Increased interest for late payment in commercial transactions

In 2014 the German Law on combating late payment in commercial transactions entered into force. Debtors have to pay default interest at 9 percentage points above base rate and a default lump sum fee of additionally 40 EUR.

The Act aims to improve the payment discipline in business and thus especially the liquidity, profitability and competitiveness of small and medium enterprises.