Deferred payment examples
Law 3/2004, of December 29, 2004, establishing measures to combat late payment in commercial transactions, transposed Directive 2000/35/EC of the European Parliament and of the Council, of June 29, 2000, establishing measures to combat late payment in commercial transactions.
With this objective, it is particularly important in the present Law to eliminate the possibility of “agreement between the parties”, which often allowed significantly lengthening the payment terms, being generally the SMEs the most damaged companies.
2. Suppliers must send the invoice or equivalent request for payment to their customers within thirty days from the date of actual receipt of the goods or services rendered.
3. The receipt of the invoice by electronic means will produce the effects of starting the computation of the payment term, provided that the identity and authenticity of the signatory, the integrity of the invoice, and the receipt by the interested party are guaranteed.
One could well think that it is the typical roll that someone else gives you who is not going to give you a penny. This comment that seems off-topic, may well not be, Sauriodi (and moderators), and be the conversation in fact in an ironic tone reflecting a perfect sarcasm. Keep that in mind just in case.
One might well think that it is the typical roll that someone else gives you who is not going to give you a penny. This comment that seems off-topic, could well not be, Sauriodi (and moderators), and be the conversation in fact in an ironic tone reflecting a perfect sarcasm. Keep that in mind just in case.
Form of payment in installments
Before we start talking about payments, it is good to know the different laws in force that regulate them. Law 15/2010, known as the late payment law, which amends Law 3/2004, the entrepreneur’s law, sets the parameters in relation to payments to suppliers.
The law obliges not to delay payments for more than thirty days for fresh or perishable products or sixty days for non-perishable products. It does not admit an agreement between the parties for a longer term. This in turn indicates that the days are calculated after delivery of the goods and not from the date of invoice.
From the financial point of view, it must be taken into account that, as a restaurant, we collect the sales in cash and in some cases in advance (when formalizing the reservation). Therefore, the payment term we establish with suppliers can be considered as financing. We could qualify it, in the cases of purchases that would be invented, remain unproductive for a long period, as can be the products of the cellar or those of long conservation.
Said Law indicates that the payment term that the debtor must comply with is 30 calendar days, after receiving the product or the rendering of the service, if no payment date or term has been established in the contract.
All this is in accordance with art. 4.1 of the Law on Combating Late Payment in Commercial Transactions (Law 3/2004), after its reform by Laws 15/2010 and Law 11/2013, which establishes that the maximum payment term is 60 days.
The case revolved around the nullity or not, of the payment term established in the contract for 180 days. The Supreme Court declared the contract null and void and ordered the payment of late payment interest, calculated from the 60 days.
It covers the items of suppliers and sundry creditors for debts with suppliers of goods or services. For practical purposes in the annual accounts it will be advisable to use the average between the referred balances at the beginning and end of the fiscal year.