Recovery of interest in commercial transactions

The law firm Duraj & Reck and Partners specializes in the recovery of interest for late payments in commercial transactions. Commercial transactions are agreements which provide goods or services for payment. It is crucial that the parties enter into agreement in connection with their business or professional activity.

Who is affected by payment terms in commercial transactions?

●      Businesses (including foreign businesses and their branches),

●      freelancers,

●      entities performing agricultural activities,

●      entities subject to the Public Procurement Law.

However, they do not apply to:

●      debts covered by proceedings conducted under the Bankruptcy Law and the Restructuring Law,

●      contracts under which banking activities are performed,

●      contracts to which only entities of the public finance sector are parties.

Prior to January 1, 2016 only two types of interest were identified:

•       statutory interest determined by the Council of Ministers by decree, 

•       “treasury interest”, determined pursuant to Article 56 of the Tax Ordinance, the rate of which is equal to 200% of the NBP Lombard rate plus 2%, but not less than 8%.

Only statutory and treasury interest applies to transactions entered into before January 1, 2016, while all types of interest listed belowunderneath apply to transactions entered into after January 1, 2016.

As of January 1, 2016, Polish law distinguishes between the following types of interest:

•       Interest to which the creditor is entitled under Article 359 of the Civil Code – it is due when it results from: 

a.       a legal act

b.       a law or 

c.       a court decision or 

d.       a decision of another authority. 

If the rate of interest is not otherwise specified in the contract, it is due at the statutory rate. The sStatutory rate is equal to the NBP reference rate + 3.5%. At most the contract can stipulate interest at twice the statutory interest rate. If the amount of interest for delay in the contract is higher, the maximum interest is due.

•       Interest for delay to which the creditor is entitled under Article 481 of the Civil Code – for exceeding the deadline for payment by the debtor. If the rate of such interest is not specified in the contract, it is equal to the NBP reference rate + 5.5%. The maximum interest rate that can be stipulated in a contract is twice the statutory interest rate. If the amount of interest for delay in the contract is higher, the maximum interest is due.

•       Statutory interest for delay in commercial transactions – due tofor the debtor’s delay in payments arising from commercial transactions. They are due under the provisions of the Law on Prevention of Excessive Delay in Commercial Transactions. The amount of this interest, unless the parties have stipulated higher interest in the contract, is determined as followsequal:

a.        when the debtor is a public healthcare entity – NBP reference rate + 8%;

b.       when the debtor is another entity – NBP reference rate + 10%.

•       The so-called “treasury interest,” i.e. interest on arrears under Article 56 of the Tax Ordinance. The rate of this interest is equal to 200% of the NBP’s Lombard rate + 2%, but not less than 8%. 

The Law Firm Duraj & Reck and Partners offers you comprehensive legal services in the field of judicial enforcement of claims with interest accrued in accordance towith the contract with the debtor, the Civil Code or the Law on the Prevention of Excessive Delays in Commercial Transactions, as well as recovery of the amounts awarded. We are flexible when it comes to shaping our remuneration; we are happy to agree to a success fee.