1. When is a contractor late in paying?
For the contractor (debtor) to be late in paying, the other contracting party (creditor) must have fulfilled all obligations under the contract, i.e. to deliver the goods or provide the service in the agreed quality and time. It is assumed that the contractor has accepted the performance of the creditor (cooperation was provided for the debtor to be able to accept the goods/service). The creditor should be able to prove these facts for the purposes of a possible dispute, all documentation should be kept (documents relating to the delivery, or photographs of the goods upon delivery) and communication with the contractual partner.
2. What to do when a contractor does not pay?
Send an invoice to your contractor immediately after the deadline for the delivery of the goods or service. The best way is to deliver the invoice together with the delivery of goods or performance of a service.
After the expiry of the period for payment, send the contractor a request for payment, in which you may include an interest on late payment and a fixed sum of EUR 40 to cover recovery costs.
If your request for payment is ineffective, apply for a payment order at the competent court and get an enforcement order. In the application for a payment order, identify and provide proof of your claim (documentary – a contract (if made in writing), invoice, delivery note, request for payment) and pay the court fee.
When you obtain the enforcement order, contact any court executor to initiate the enforcement procedure.
3. What is the deadline for applying for a payment order?
If you do not apply for a payment order at the court within 4 years from expiry of the deadline for payment, your position in the court proceedings will be weak due to the objection that the legal claims are time-barred.
4. What is late payment interest?
Late payment interest is a sanction for debtors being late in fulfilling their pecuniary obligations, and meaning that creditors do not have their funds available to them, while debtors use them unjustifiably for their benefit, without the creditor’s approval. Therefore, interest on late payment is often referred to as a ‘flat-rate compensation for damages’. Interest on late payment is to be paid in addition to the amount due (principal sum) and it is determined as a percentage of the outstanding part of the debt. In civil matters, the late payment interest rate is not to exceed the statutory interest rate. In commercial matters, the entrepreneurs usually come to a mutual agreement about the rate (the rate must not be contrary to the principles of fair trade practices), otherwise the statutory interest rate for late payment applies.
5. What is the statutory interest rate for late payment?
In civil matters, the statutory interest rate for late payment is the base interest rate plus 5 percentage points.
In commercial matters, the statutory interest rate for late payment is the base interest rate plus 8 percentage points.
Historical data on the statutory interest rate for late payment is available in Slovak on the website of the Ministry of Justice of the Slovak Republic, or you can find out the rate by using the calculator.
6. Who to contact, if needed?