Payment and late payment interest

Typical wording

Invoices fall due thirty (30) days after the invoice date. Late payment interest accrues under the Norwegian Late Payment Interest Act.

What it means

You have 30 days to pay. Pay later and interest is added, and in many agreements the supplier may suspend the service.

Common practice

14-30 day payment terms are common between businesses. The interest rate normally follows the statutory rate; a higher agreed rate occurs but is more onerous than the norm.

What to look for

• Is the due date shorter than your own payment routine?
• Can the supplier suspend the service after a single late invoice?
• Are fees agreed on top of the statutory interest?
• Can disputed amounts be withheld without triggering suspension?

Source