Document background
A Terms of Payment Letter is a crucial business document used to formally establish and communicate payment arrangements between commercial parties. This document is particularly important in the Belgian business context, where it must comply with specific legal requirements including the Belgian Civil Code, the Law of August 2, 2002 on Combating Late Payment in Commercial Transactions, and the Belgian Economic Law Code. The letter is typically issued at the start of a business relationship or when modifying existing payment terms, providing clear documentation of payment deadlines, methods, currencies, and consequences of late payment. It serves as a reference point for accounts payable and receivable processes, helping prevent payment disputes and ensuring compliance with Belgian commercial law requirements.
