Payment Terms Legislation In Finland

The Act on Payment Terms for Commercial Contracts (as last amended in 2015 by Act 385/2015) enacts the EU Late Payment Directive (see European Union for details). Additionally Finish law sets a stricter maximum term of 30 days unless expressly agreed by both parties and not unfair. The Contracts Act 1929 further limits unfair contractual clauses.

The Food Market Act of 2018 (1121/2018) was amended in 2021 and again in 2023 to enact the EU UTP in the supply chain directive (see European Union for details). It excludes fish products. The maximum payment term for all agricultural goods, except grapes for winemaking, is 14 days. In addition, rather than five company size tiers the law applies where the buyer is larger than the supplier by turnover, the supplier has turnover of less than €350 million and the buyer has turnover of more than €2 million.

The Board of Trading Practices in the Food Supply Chain promotes fair business practices in the sector. In addition, companies may request that the board issue a statement against a company which has shown unfair conduct.

See European Union for the Directive on Unfair Trading Practices in the Food Supply Chain which was adopted on 30 April 2019.

The Interest Act (633/1982), section 4a, sets a minimum penalty interest rate at the European Central Bank refinancing rate, published every six months by the Bank of Finland, plus 8%.