Your contractor doesn't pay on time? Check if you're entitled to compensation for debt recovery costs!

Tired of late payments? The law is on your side.

Many entrepreneurs, especially those in the SME sector, struggle daily with late payments from contractors. Unfortunately, late payment of invoices is not only problems with financial liquidity, but also additional costs and stress.

Good news? You are entitled to compensation for debt recovery costs – even if you have not incurred any costs, you do not use a debt collection agency or take the case to court.

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What is compensation for debt recovery costs?

Pursuant to the Act of 8 March 2013 on Counteracting Excessive Delays in Commercial Transactions, in the event of a delay in payment, the creditor has the right to demand lump sum compensation already from on the first day after the payment deadlineAnd without any summons.

Compensation is not related to the costs actually incurred, but is due automatically if the contractor fails to meet the payment deadline.

How much can you get?

The compensation amounts (as of May 21, 2025) are as follows:

• 40 euros – for invoices up to PLN 5,000
• 70 euros – for invoices from PLN 5,000 to PLN 50,000
• 100 euros – for invoices over PLN 50,000

They are converted into Polish zloty using the average euro exchange rate announced by the National Bank of Poland on the last business day of the month preceding the month in which the payment became due. For example, if the debtor was to pay on May 21, 2025, the conversion rate must be based on the last business day in April, which in our case is April 30, 2025. Archived rates are available on the National Bank of Poland website. https://nbp.pl/statystyka-i-sprawozdawczosc/kursy/tabela-a/

When can you claim compensation?

You have the right to request compensation, When:

• You run a business,
• Your contractor is also an entrepreneur,
• The invoice was not paid on time,
• The transaction was of a commercial nature (i.e. it involved the sale of goods or services between companies).

What is important – you do not have to prove that you incurred any debt collection costsCompensation is a lump sum and is payable by operation of law.

What if you incurred higher costs, can you claim higher amounts?

Although lump sum compensation (40, 70, 100 euros) is the most common and easy to use, in some situations you can claim reimbursement from your contractor for the actual debt recovery costs – even if they are higher.

Pursuant to the Act of 8 March 2013 on Counteracting Excessive Delays in Commercial Transactions "the creditor is also entitled to reimbursement, in a reasonable amount, of the costs incurred in recovering the debt exceeding the lump sum amounts of 40, 70 and 100 euros"

This means that if:

• you incurred the costs of hiring a debt collection company,
• you used the services of a law firm,
• you corresponded with the debtor, incurring real expenses,

you have the right to demand that the debtor cover these costs in full, as long as they are justified and properly documented.

What does this mean in practice?
For example, if you hired a lawyer or a debt collection company that charged you PLN 500 and the compensation due was EUR 40 (approx. PLN 180), you can claim difference of PLN 320 from the contractor – provided that these expenses were purposeful and related to the recovery of a specific debt.

Why is it worth remembering?

Many entrepreneurs do not know that Compensation is not a ceiling, but a minimum, which you are entitled to by law. If you actually incurred higher costs – you have every right to demand their return.

This is also an important signal to dishonest contractors – that not only do you not tolerate delays, but you consistently enforce your rights.

How to claim compensation?

1. Send a payment request – inform the debtor that in addition to the principal amount, you are also claiming compensation.
2. Add the compensation amount to the accounting note – you can issue a debit note and send it along with a payment reminder.
3. Involve a legal advisor in your case – the compensation amount may cover your actual costs related to reminders, emails, letters, etc.
4. If it doesn't work, move on - you can claim payment through the courts, and the court usually also awards an amount of compensation.

Is it worth pursuing compensation? Absolutely!

Many entrepreneurs don't exercise their rights because they "don't want to damage the relationship with the customer." But remember – it's your money and your time, and the unreliable contractor has already violated the principles of cooperation.

In addition, claiming compensation:

• shows that you treat your company professionally,
• increases the chances of faster payment,
• protects you against the accumulation of bad debts.

Summary

If the contractor is late with payment – don't wait idly by. Under the law, you can claim lump sum compensation for debt recovery costs, regardless of whether you actually use a debt collection agency.

You don't have to be a tough debt collector to effectively enforce your rights. You just need to know them—and start exercising them.

In the following parts:

1. What is bad debt relief? When and how can I use it?
2. How to quickly and cheaply set up a limited liability company in s24?