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Spanish

On July 7 th not only was San Fermin’s day, but also entered into force the Law 15/2010 of Measures to Combat Late Payments in Commercial Operations. This rule amends Act 24/2004 –which had poor results-, and tries to be the start point or “Chupinazo” to stop the increasing number of defaults and delays in the payment of overdue bills that is affecting both the liquidity of small and medium enterprises. Thus, the aim is that we will find more effective to apply this law when collecting bills, than to disguise ourselves as San Fermin’s boys and pursue the defaulter through narrow streets with a red neckerchief and a newspaper in hand. Here are the law’s highlights:

 a)       The Law is applicable to payments arising from commercial transactions between businesses, between businesses and government, and also between the main contractor and its suppliers and subcontractors. But this law does not apply if you sell to final consumers, whom you will have to keep hounding through the courts or through the Collector of Frac ©.

 b)       Any day is good to pay, because the payment terms are counted in calendar days, even though they are holidays. Moreover, whether we agree with customers or suppliers that the holiday periods will not be counted to pay, that covenant is void!

 c)       The deadline to pay the bills is 60 days for almost everybody and that period can not be extended by agreement between parties. So: payments to 90 and 120 days are over, although lower terms can be maintained, because the rule does not allow us to agree to increase terms for longer that 60 days but we are allowed to reduce them. For the Administration, the deadline for payment is reduced to 30 days.

None of the two deadlines shall be effective until January 1st, 2013, during which time periods will be reduced gradually, according to a schedule that is different for the administration and for private comanies. For now, keep in mind that at present  the maximum payment period for companies is 85 days until 31^st Dec. 2011, and for the administration is 55 days until 31^st Dec. 2010.

 d)       The deadline to send the invoice to customers is 30 days after providing the service or receiving the goods. What happens if we send it later? Does that justify the refusal to pay? … Well, as the law says nothing about it, we have no option but fight if the defaulter uses this as an excuse. Then, Judges are those who settle the conflict (what a useful measure, instead of avoiding courts, we are calling them to intervene!).

 e)       When the debtor is in arrears in payment, we can require the recovery costs to a maximum of 15% of the debt or, if it does not exceed € 30,000, the limit of the costs we can claim is the amount of own debt.

 f)         Unfair terms which are detrimental to the creditor are void and it is understood that are abusive, those that would help the debtor to finance himself at the expense of the creditor, and also any change of terms or legal interests without objective reasons.

 g)       Changes in the financial statements: from the year 2010 the payment terms to suppliers must be mentioned explicitly in the report.

It will not be an easy shut up, but trust that with law we will be able to run to pen the raging hordes of bad debtors that lately assail and gore us, as if they were a runaway herd of bulls and oxen

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