Abstract:

Every business activity is based on contracts. Unfortunately, it happens that the parties do not perform the contract. Entrepreneurs are particularly often unable to meet their financial obligations on time. These delays in Poland amount to over 40 days.  Late payment affects the financial result of enterprises and their financial liquidity. The problem of late payments affects the whole of Europe and the world. However, business practice and legislation have developed instruments that can significantly reduce the negative effects of late payment or fully compensate for them. The article discusses an important problem related to the possibilities of dealing with the effects of late payment. The publication analyses the problem of late payments on the European Union market and in Poland and describes solutions to reduce the negative effects of delays, such as compensation and interest for debt recovery, tax reliefs for bad debts, ways of securing oneself in court proceedings, debtor restructuring and others relationship with counterparties. However, despite the best ones, there are situations when payment will not be made. In such a case, it is necessary to use the instruments described in the article, which allow to reduce the incurred losses or eliminate them.