What is the statutory interest and what is the percentage
The statutory interest is an interest rate that is set by law and applies to various situations, such as overdue payments and compensation. It is a fee payable if someone pays late.
The interest rate of the statutory interest is determined annually by the government . The Ministry of Justice and Security annually determines the percentage of the statutory interest. This is regulated in Section 6:119a of the Dutch Civil Code .
Statutory commercial interest non-commercial transactions
In the Netherlands there is a statutory interest rate for non-commercial transactions. From July 1, 2023, the statutory interest rate for non-trade transactions is set at 6%. This is the so-called “statutory interest for consumers”. This interest rate applies to, for example, compensation, damage due to delay, or if there is interest on overdue payments from private individuals.
Statutory interest for commercial transactions
A different interest rate applies to commercial transactions, namely the statutory commercial interest. From 1 July 2023, the percentage of the statutory commercial interest has been set at 12%. This percentage applies to commercial transactions between companies, or between companies and government institutions.
Please note: the statutory commercial interest is a different percentage than the statutory interest for consumers. It is important to know that these percentages can change annually and that there can also be differences per country or region.
Percentage of statutory interest on non-commercial transactions in the past 10 years
Below is an overview of the statutory interest rates for non-commercial transactions over the past 10 years:
- statutory interest 2023: 6% (from 1 July)
- statutory interest 2022: 2%
- statutory interest 2021: 2%
- statutory interest 2020: 2%
- statutory interest 2019: 2%
- 2018: 2%
- 2018: 2%
- 2016: 2,25%
- 2015: 2%
- 2014: 2%
The statutory interest rate for non-commercial transactions is set each year by the government and can be adjusted according to developments in the money and capital markets.
Percentages of legal interest for commercial transactions over the past 10 years:
- statutory commercial interest 2023 : 12,00% (from 1 July)
- statutory commercial interest 2022: 7,50%
- statutory commercial interest 2021: 8,05%
- statutory commercial interest 2020: 8,05%
- statutory commercial interest 2019: 8,05%
- 2018: 8,25%
- 2018: 8%
- 2016: 8,05%
- 2015: 8,05%
- 2014: 8,15%
Statutory interest diagram from 2014 to 2023
Here is the bar chart showing the legal interest rate in the Netherlands from 2014 to 2023. The green bars show the legal interest rate for non-commercial transactions and the red bars show the legal interest rate for commercial transactions.
What is the purpose of statutory commercial interest
The purpose of statutory commercial interest is to provide statutory compensation for the use of capital in business-to-business commercial transactions, or between businesses and government agencies.
It is intended to encourage parties to pay on time and to compensate for the financial consequences of a late payment, such as, for example, missing income, having to pay extra interest to third parties or taking out extra financing to cover liquidity needs. cover.
Statutory commercial interest provides companies with a legal instrument to enforce payment and ensures that the payment risk is shared more fairly between the trading parties. It can also help improve business cash flow and avoid bankruptcies due to late payments.
By setting a statutory interest rate, parties are encouraged to meet their payment obligations , creating more certainty and stability in trade relations between companies and between companies and governments.
How do you calculate the statutory commercial interest
The statutory commercial interest is an interest rate that is calculated on the outstanding amount of a commercial transaction where the payment term has expired. The statutory commercial interest is calculated as follows:
- Determine the period over which the interest is calculated: This is the period between the due date of the payment term and the date when the payment is finally received.
- Determine the amount on which the interest is calculated: This is the amount of the outstanding claim, including any collection costs and other costs.
- Determine the interest rate: For non-trade transactions, the interest rate for 2023 (2nd half year, from 1 July ) is 6%. For commercial transactions, the interest rate for 2023 (2nd half year, from 1 July ) is 12.00%.
- Calculate the statutory commercial interest: Multiply the amount on which the interest is calculated by the interest rate, and divide by 100. This is the amount of statutory commercial interest that must be paid over the period.
Example statutory interest: If the outstanding amount of a commercial transaction is €10,000 and the payment term has expired, the following interest must be calculated at an interest rate of 12.00% over the period in which the payment was overdue:
(€10,000 x 12.00%) / 100 = 1200
In this example, the statutory commercial interest is therefore €1200. This amount is in addition to the outstanding amount of € 10,000 that still has to be paid.
What is compound or simple interest?
If the interest is simple, it means that the interest is calculated on the original amount due, without the interest itself being included in the calculation of the interest for the subsequent period.
With compound interest, the interest is added to the outstanding amount, so that interest is calculated on interest and the total amount increases faster and faster. This is not the case with simple interest and interest is only calculated on the original amount due.
Is statutory commercial interest required?
Yes, the statutory commercial interest is mandatory for commercial transactions between companies, or between companies and government institutions.
The legal interest ensures that the parties receive a legally determined remuneration for the use of capital in commercial transactions. As a result, the payment obligations between trading parties are distributed more fairly and it can help to prevent bankruptcies due to late payments.
Failure to comply with the payment obligation can lead to legal proceedings, in which the court will in most cases rule that the statutory commercial interest must be paid as compensation for the delayed payment.
It is therefore wise for companies to comply with the payment terms and to pay on time to avoid extra costs.
Experienced specialists
Would you like to know more about the statutory interest or are you curious about how we can use it in your situation? Naturally, as a debt collection agency , we like to think along with you about both the amicable and any legal proceedings for collection. In this way we ensure that you receive payment for your outstanding claim or outstanding invoice .
What customers say
“Our company is in fashion and we want to keep our focus on the core business. That’s why it’s very nice to have Credifin as a safety net! They unburden us and thanks to them we almost always receive all payments.” State of Brands
“The Orthocenter, with more than 45 branches, believes that debt collection agency Credifin is a good partner and provides excellent services in the field of No Cure No Pay collection. There is appreciation for the human way of collecting money.” Orthocenter
“Very positive, good communication, system is user-friendly so you can quickly view the status of a file.” Me Physio
