EU Proposes Stricter Late Payment Directive

## Background The European Commission has proposed a major revision to the Late Payment Directive, eliminating the ability to contract for longer payment terms. ## Proposed Changes - Maximum 30-day payment terms for all B2B transactions - Automatic 8% + ECB rate interest from day 31 - No contractual waivers permitted - Enhanced enforcement mechanisms ## Current Status The proposal is under review by the European Parliament with final vote expected Q2 2025. ## Industry Response Business groups have expressed concerns about reduced flexibility, particularly for industries with longer cash cycles.