GlossaryEN1 min readUpdated: Jun 13, 2026

Default interest clause

When a customer fails to pay on time, default interest automatically accrues on the outstanding invoice.

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Last updated: 13 June 2026Published: 27 January 2026

Source: https://www.gesetze-im-internet.de/bgb/__288.html

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Definition & Explanation

When a customer fails to pay on time, default interest automatically accrues on the outstanding invoice. This clause specifies the default interest rate—either based on the statutory base rate plus a margin (typically 5–10 percentage points) or a higher rate negotiated in the contract. Default interest serves as both a deterrent and a revenue mechanism in commercial logistics, particularly in B2B transactions where payment defaults are frequent. Different jurisdictions (EU, US, others) define default interest differently; the contract should clarify which law applies.

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Default interest clause

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Related Terms

Penalty clause for payment deadline

Late payment clause

import tax interest

Interest on import duties

Customs interest

default in damage payment

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