Discount, to specific customers only
Settlement discount is
automatic to all customers with credit accounts
Credit accounts will receive 1.5%
settlement discount if paid within 21 days with a further 7 days
grace Late Settlement Combating Late Payment in Commercial
Transactions - European Communities (Late Payment in Commercial
Payment: Payment can be made by cheque or draft,
postal order or direct to Bank. Please do not send cash by post.
In Ireland we do not accept credit cards,
we will when our online store starts trading.
We do not take credit cards, All sales
are through international bank drafts payable to DBN or direct
to bank via international swift code. Ask for details on submitting
Credit Law: This law will be implemented in Ireland
by the European Communities (Late Payment in Commercial
Transactions) Regulations 2002 which provide that penalty interest
will become payable if payments for commercial transactions are not
met within 30 days, unless otherwise specified in a contract or
agreement. Any commercial contract made under the law of another
member state of the E.U. will have access to similar entitlements
resulting from this legislation.
Current Credit Position in Ireland. In
1994, a Task Force on Small Business recommended that legislation be
introduced to ensure Prompt Payment by the public sector. The Prompt
Payment of Accounts Act, 1997 was enacted following this
recommendation. Ireland was one of the first countries in the E.U.
to introduce such a law. This Act requires public sector organizsations
to pay their bills on time or else pay penalty
The effect of this Act has been to
substantially improve the payment times in the public
Payment periods and payment delays in
E.U. Member States There are significant differences between the
Member States of the E.U. as regards payment periods and payment
delays. Payment deadlines vary from as low as 27 days to a high of
The average is 53 and Ireland is just
below this at 51 (see table). Although these figures are some six
years old we do not have reason to believe they have changed
significantly. Given the wide disparity in current average payment
periods throughout Europe, it is hoped that this harmonising measure
will ease cross-border trading difficulties and help promote a
culture of prompt payment in Ireland.
Outline of the
The Regulations will apply to commercial
transactions in both the public and private sectors. However, there
are some exceptions.
These are: debts that are subject to
other laws e.g. insolvency proceedings claims for interest of less
than 5 euro transactions with consumers contracts that were agreed
before 8 August 2002 Payment Period The Regulations provide that
interest shall be payable in respect of a late payment. In addition,
it will be an implied term of every contract that interest is
payable if debts are not paid on time. A payment is regarded as late
when 30 days have elapsed unless an alternative payment period is
specified in an agreed contract In the case of an agreed contract
payment is regarded as late if the payment period exceeds the date
or end of the period for payment specified in the contract. Where
the contract does not specify a payment period a default payment
period of 30 days will apply. This 30 day payment period begins on:
the date of receipt by the purchaser of an invoice for payment or
the date of receipt of the goods or services where; the date of
receipt of the invoice is uncertain or the purchaser receives the
invoice before the delivery of the goods or services in question. In
cases where the parties have agreed a procedure for acceptance or
verification of the goods or services, the 30 day payment period
starts after this process has been completed.
The interest rate chargeable for late payment is
the European Central Bank (ECB) rate plus 7 percentage points.
Parties to a contract may agree an alternative interest rate. The
ECB rates in force apply for the following
six months in each year. Only one rate will apply to a late payment
which should be the rate in force on the payment date.
The annual interest rate applicable
applied to late payments on a daily basis.
Check the Department of Enterprise, Trade and Employment’s
website (see Associated Links) for the latest applicable late
payment interest rate. The up to date ECB rates can also be seen on
the ECB website.
Contracts and terms of trade (interest rate
chargeable and payment period) must be fair.
The use of terms that
are grossly unfair may be unenforceable. Criteria for testing
whether terms are grossly unfair are specified in the Regulations
and include the following:
Good commercial practice
The nature of the goods or services
The relative bargaining positions of the
If the supplier received any inducement to agree
to the term in dispute
Whether the purchaser has any objective reason
to 'deviate' from normal payment periods or interest rates.
Grossly unfair terms may be challenged in Court by
a supplier and compensation may be awarded.
Grossly unfair trading terms may also be
challenged by organisations representing small and medium sized
To challenge grossly unfair trading terms,
representative organisations must have a legitimate interest in and
be representative of SMEs. Representative organisations may take an
action, before a court on behalf of its members, seeking a ruling
that contractual terms drawn up for general use are grossly
Organisation: Department of
Address: Government Buildings, Upper Merrion
Street, Dublin 2, Ireland.