Late Payment Penalties France: What the Law Says

French late payment rules are governed by Article L441-10 of the Code de commerce. Key points: • Payment terms cannot exceed 60 days from invoice date (or 45 days end-of-month) • Interest penalties apply automatically from day 1 of late payment • A fixed recovery indemnity of €40 is owed per invoice • These terms must appear on your invoices

The minimum interest rate is 3× the BCE (Banque Centrale Européenne) rate, which gives approximately 12.06% per year in 2026.

Formula: (Invoice amount × rate × days late) / 365

Example: €5,000 invoice, 30 days late = (5,000 × 0.1206 × 30) / 365 = €49.56 in interest + €40 fixed recovery fee = €89.56 total penalties

Your invoices MUST mention: 1. The applicable late payment interest rate 2. The €40 fixed recovery indemnity 3. Payment terms (date or period)

Failing to mention these can result in a €75,000 fine for companies (€15,000 for individuals).