Business, finance and payments
default interest
In short and in plain language
Default interest is what you pay when you pay a bill too late.
The law says when a payment counts as late. It also sets how high the interest is.
So it matters when a bill arrives and when it is due.
Definition
Default interest is interest a debtor pays when in default on a payment claim. The German Civil Code governs when default occurs and how far the rate lies above the base rate. For invoices, the date of receipt and the due date therefore matter.