How does contractual interest work under Dutch law?

Dutch term: Contractuele rente | Legal basis: Freedom of contract + 6:119 BW

Parties to a Dutch commercial contract are free to agree on a contractual interest rate for late payment that differs from the statutory rates. A contractual interest clause takes precedence over the statutory rate, provided it is not unconscionable under article 6:248 of the Dutch Civil Code.

If the contract contains no interest clause, the statutory rate applies automatically: ordinary statutory interest (article 6:119 BW, currently 4%) for non-commercial claims, or statutory commercial interest (article 6:119a BW, currently over 10%) for B2B transactions. The statutory commercial rate cannot be reduced to the creditor's detriment.

Why it matters for international businesses

For international supply contracts, specifying a contractual interest rate provides certainty and avoids disputes about which statutory rate applies.