The European Parliament on the 20th October approved new rules to crack down on late paying businesses and public sector organisations. The Europe-wide directive is aimed at reducing the estimated 25bn Euros that companies spend each year chasing late payers, but has received a mixed response.
Under the directive, which will be phased in over two years, companies and public institutions will be required to pay bills within 30 days and may be charged an eight per cent interest charge on overdue invoices. Small firms will also be handed the power to charge 40 Euros to cover expenses for late bills.
