Statutory payment term

The statutory payment term is the maximum period within which an invoice must be paid. This is an important part of financial and legal agreements between companies, consumers, and government agencies. In this knowledge article, we explain what the statutory payment term is, which rules apply, and what you can do if the term is exceeded. Additionally, we answer frequently asked questions and provide several practical examples.

What does the statutory payment term mean?

The statutory payment term is an established period within which an invoice must be paid. This term is intended to ensure financial clarity and stability. After all, it would be unworkable if you, as an entrepreneur, had to wait years for your money. The payment term depends on the relationship between the parties. For example, different rules apply to B2B, B2C, and invoicing relationships with government agencies.

Rules regarding statutory payment terms

There are specific rules for the statutory payment term in the Netherlands.

Between businesses (B2B)

• The maximum statutory payment term in the Netherlands is 60 days.
• Other agreements can sometimes be made in a contract.
• Other agreements have also been made for payments from large companies to SME entrepreneurs. For instance, a large company must pay an SME within 30 days.
• A payment term of more than 60 days is only allowed if it can be demonstrated that this is not detrimental to the buyer or seller.
• If no payment term has been agreed upon? Then a payment term of 30 days applies.

Businesses and consumers (B2C)

• There is no statutory payment term for private customers.
• As an entrepreneur, you must apply a "reasonable" payment term.
• The payment term must be stated in a contract or your general terms and conditions.
• Always take into account the statutory WIK-term for private individuals before starting a collection trajectory.

Government agencies

• Government agencies must pay invoices within 30 days.
• There are exceptions in which the payment term may be extended to 60 days.

Why is the statutory payment term important?

The statutory payment term is essential for:

• Cash flow management: Companies can plan and manage their liquidity better if they know when they can expect to receive their money.
• Protection against non-payment: It provides legal support in cases of late payments. After the payment term has expired, companies may proceed to (extra)judicial collection of invoices.
• Fair trade practices: It prevents larger companies from imposing unreasonably long payment terms on smaller suppliers. Large companies could otherwise keep small companies, which might be more dependent on a specific cash flow, under their control.

What to do when the payment term is exceeded?

If an invoice is not paid within the payment term, you, as an entrepreneur, can take the following steps:

1. Send a reminder: Send a (friendly) payment reminder a few days after the term has expired. Also, try to determine why the customer has not yet paid.
2. Send a formal payment reminder (aanmaning): State clearly that extra costs or interest will be charged if payment is not received.
3. Engage a collection agency: If the customer still does not pay after sending one or more payment reminders, it is advisable to engage a collection agency. The collection agency is specialized in collecting unpaid invoices.
4. Legal steps: If the customer has not paid even after an amicable collection trajectory, you can proceed to a legal procedure. At incasso.nl, we always give you sound advice in advance regarding the feasibility of a judicial collection trajectory. This way, you avoid negative surprises and have a realistic picture of what to expect.