Regulation on Combating Late Payment in Commercial Transactions

Summary: Late payments are a major problem for businesses in the EU, especially SMEs. They are caused by a number of factors, including the imbalance of power between large buyers and small suppliers. The current EU legal framework is not effective enough at preventing late payments or helping businesses to recover compensation. The European Commission is working on a revision of the Late Payment Directive, which aims to improve the payment discipline of all businesses and protect companies from the negative effects of late payments.