Payment default
What happens if the seller does not pay
Once an amount is finalised, the issue is no longer whether the buyer is entitled. The issue is whether the seller pays on time, and the agreement treats delay seriously.
Payment due
A finalised reimbursement amount must be paid promptly
Once the reimbursement amount is agreed or otherwise finalised under the arrangement, the dispute about entitlement is over. From that point, the question becomes payment.
When the deadline starts
The payment clock begins once the amount is finalised under the contract process.
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When the deadline starts
The payment clock begins once the amount is finalised under the contract process.
- The seller pays the buyer directly.
- Payment is due within 4 Operating Days of finalisation.
- The amount due is the final recoverable amount after eligibility, percentage, and cap are accounted for.
What the seller cannot say at that point
Late resistance does not reopen the entitlement stage.
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What the seller cannot say at that point
Late resistance does not reopen the entitlement stage.
- The seller cannot treat payment as optional once the amount is finalised.
- The contract treats the funding commitment as central to the deal.
- Delay then has its own contractual consequences.
Consequences
Delay amounts, interest, and repudiatory breach
The agreement responds to non-payment with daily delay amounts, contractual interest, and eventually a repudiatory breach position if the seller still does not pay.
Go next
District Court recovery and the €120 credit after payment default.
Return to the transaction flow for a new sale.
Immediate financial consequences
Delay is not consequence-free even before court action is considered.
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Immediate financial consequences
Delay is not consequence-free even before court action is considered.
- €2 accrues for each full or partial day of delay.
- Late Payment Interest accrues on the outstanding amount.
- These sums are additional to the reimbursement amount itself.
Example calculation
If a €700 reimbursement is finalized and paid 30 days late, the seller owes the €700 + €60 (30 days × €2) + €10.50 in monthly interest (1.5% of €700), bringing the total to €770.50.
Longer default
Continued non-payment can become a more serious contractual breach.
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Longer default
Continued non-payment can become a more serious contractual breach.
- Extended non-payment can amount to repudiatory breach under the agreement.
- That strengthens the buyer's outside enforcement position.
- The issue then moves beyond internal review and into formal recovery options.