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I receive an invoice that is a few years old... What should I do?

Your obligations and rights explained when you are faced with an invoice prescription.

An invoice. What is it exactly?

Before we get into the question of your obligations and rights when you receive a late invoice, let's agree on what must be included in it in order for it to be considered a proper invoice.

The VAT Act lists the items that must appear on a valid invoice. There are 5 key points to consider :

• The identities of the provider and the client must be clearly indicated. The company identification number is used for this purpose.
• The addresses of the parties involved are also used to identify stakeholders. This can be the address of the company's registered office and the customer's home.
• The purpose of the supply (a good or service) is properly detailed. The quantity if they are goods or the nature of the services provided.
• Obviously, the pricing must be on the invoice. An amount excluding tax and an amount including all taxes indicate the amount to be paid. VAT rules apply.
• Finally, the deadlines and the date of settlement must be clearly specified.

OK but it's a 6 year old invoice...

Wondering if you should pay for it? Let us assume that it is justified. The good has been delivered, the service has been delivered.

The limitation period for the payment of invoices is governed by the Code of Obligations. For an invoice that is 6 years old, the nature of the good or service must be analyzed.

As a general rule, a limitation period of 10 years applies. You are therefore required to pay your bill. However, there are cases where this period is shortened to 5 years.

Here they are :

• Rents
• Support
• Food supplies
• The actions of the craftsmen
• The services of doctors, lawyers, law agents and notaries

If the services or goods covered by the invoice received late come from this list, you are entitled not to pay for it because the limitation period has expired. You can inform the creditor in this regard by referring to the Code of Obligations.

Please note the principle of abuse of rights.

Imagine invoking a cash flow problem preventing you from paying the bill by promising that your financial situation will improve and allow you to pay the debt, eventually.

In this case, the creditor may not have asserted what is due within the legal period. In this case, you cannot invoke the limitation period to avoid payment. This would be considered an abuse of rights.

Heard. The invoice is valid and the statute of limitations has not expired. Can they charge me late payment interest?

The Act does not provide for interest on late payments, but creditors are free to apply them.

This interest, often referred to as a reminder fee, is generally in the range of 5%.

They can only be applied after the payment period has expired. As explained, the payment deadlines and date must be included on the invoice in question.

• OK, but in this case, the reminder fee is more than 5%. Is it legal ?

A company cannot arbitrarily decide on the amount of recall fees without detailing the calculation in their terms and conditions.
The principle of proportionality also applies.

As long as the general terms and conditions include an explanation of the possible costs and this is not disproportionate, the amount can legally exceed 5%.

Of course, you can dispute the amount in question. The creditor will then have to justify the damage suffered.

OK but the amount of the invoice is wrong. Worse, the bill is not justified !

Let's review some of the cases where you can dispute an invoice :

You receive an invoice for CHF 1,000 but the initial estimate shows an estimated amount of CHF 500.

You have the right to refuse to pay. Although a margin of increase is acceptable following a quote, this increase should not exceed 10%.

This is why your garage will contact you following potential additional costs. You must provide your prior consent.

• I receive an invoice for goods not ordered.

If you have not ordered anything, you have the right to refuse the goods received and not to pay the associated invoice. So don't be fooled into feeling obligated to honor an invoice after receiving unordered goods.

• I have an invoice for premium rate services that are not included in my subscription.

If these services are not included in your contract with the provider or operator, you have the right to object to them. Of course, honor the fees associated with your subscription, your contract, but dispute the additional costs not provided for in the agreement.

And the repayment of my loan... Can I dispute an invoice if I can't pay ?

The Consumer Credit Act contains all the rules relating to your personal loan.

If the invoices received are clearly detailed, refer to the loan agreement signed with the lending bank, include the correct amounts and are received before the statute of limitations, you are obliged to honour them.

Of course, your personal situation must be considered, but it is your responsibility to inform your creditor promptly of any difficulties encountered in order to try to find a new repayment format. Don't hang around.

Milenia

Milenia is the leading financing platform in Switzerland. Together with its banking and credit partners, offering credit, insurance and data cleaning solutions is the best if you want to finance your personal projects or protect yourself.

Sound advice, professional follow-up of your application file, qualitative analysis of your supporting documents, proposal of the best rates on the market and transparent and benevolent communication... This is the minimum you can expect from your credit partner, Milenia in this case.

That's why we constantly inform our clients about their obligations and their rights.

Browse our blog to learn and stay up to date on the latest trends in the world of credit and finance. 

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Years go by, but the topic of interest rates remains topical. What about in 2024?

We take a look at the issue of rates for consumer credit and your mortgage.

Need a personal loan in 2024? What's changing?

The Ordinance on the Federal Act on Consumer Credit aims to set a course for the interest rates charged by banks and credit brokers.

What for?

Simply to protect the interests of the consumer.

As it is a quick and easy financing solution that also represents a greater risk for lenders, the interest rates charged are generally higher.

In order to avoid cases of over-indebtedness and to limit the emergence of unscrupulous players in the sector, a maximum interest rate is applied, a "cap".

Funding platforms are required to meet this milestone.

The mechanisms used to set the maximum rate are often linked to upward or downward trends in interest rates as well as the policy rate determined by the country's financial and political authorities.

It is for this reason that an increase in the maximum rate was decided and implemented from 1 January 2024. It will now be a maximum of 12%.

Is my credit impacted?

The potential application of this maximum rate is only relevant for contracts concluded after 1 January 2024. A contract signed before is therefore not impacted.

Need a mortgage? Are rates falling?

This is the question asked by many homeowners or future homeowners. Especially after the recent rise in mortgage rates after a period of historically low rates.

Inflation over the past two years has had a significant impact on interest rates. Depending on the duration of the contract, rates have been close to 4-5%, generating widespread concern about the ability of homeowners to repay if this were to last or even worsen in the long term.

The key interest rates decided by central banks in the United States and Europe were the triggers for this increase. These decisions were taken to counter a risk to the world economy caused by uncontrolled price increases.

Fortunately, the latest trends and figures show that inflation is stabilising or even falling. The consequence is a relative calm in the markets and a return to lower levels of applied interest rates.

And what about the Saron?

The Saron, the successor to Libor, bases its interest rate on the actual daily transactions on the Swiss money market.

This implies a certain degree of volatility that can work to the disadvantage of buyers opting to incorporate the Saron into their mortgage structure.

More advantageous than a fixed rate in 2023, the Saron rate has gradually caught up with the heights reached by these fixed rates.

It is more imperative than ever to get good advice on the advisability or risk of including a share of Saron in your loan.

What are the forecasts for 2024?

The current trend is rather downward and most financial institutions agree that rates will stabilize in 2024.

However, no one is able to guarantee this. What for?

First, inflation, although currently under control, is not fully stabilized.

Central banks will avoid cutting policy rates too hastily unless recessions are on the horizon.

This is the main indicator influencing borrowing interest rates in the countries concerned.

Unfortunately, the geopolitical reality remains extremely volatile.

The economic conflict between the United States and China continues to rage. The world's two major players are constantly fighting over access to cutting-edge technologies. The effects are devastating for Europe's growth recovery.

This has an impact on the climate of confidence in the financial sector.

To make matters worse, the recent elections in Taiwan have generated even more protests and provocations from the Chinese authorities. As Taiwan is a technological and industrial powerhouse in Asia, any impairment of its ability to produce and export would have significant consequences for global trade.

The conflict in the Middle East, the end of which does not seem to be in sight, as well as the risk of spreading to other territories in the region, do nothing to stabilize the markets. Added to this is the risk posed to maritime transport near Yemen; This prevents the passage of goods and could impact the entire supply chain.

Of course, the ongoing war in Ukraine continues to cause terrible loss of life but also economic damage throughout the region. As Russia is an important economic player but also a considerable military force, its collaboration with neighbouring countries such as China and even North Korea is a vector of uncertainty and fears about a potential way out of the crisis.

So yes, geopolitical events have an immediate influence on your mortgage rate and how it will evolve in the months and years to come.

Another alternative?

Despite this geopolitical reality, life must go on. Your projects don't wait and to make them a reality, funding is often necessary.

The route of a mortgage loan for a real estate project remains the first option.

Taking into account the current context, the choice of the contract term, the proposed rates and the formula with or without Saron, must be made judiciously.

However, if it is a project that requires little financing due to a large down payment or if we are talking about renovation or a reduced purchase amount, credit can be an alternative solution.

Of course, the rate is higher, but it is very likely that you will not reach the maximum rate imposed as described above. In addition, the rate granted remains fixed.

Other significant advantages are the absence of the obligation to justify the use of the loaned funds, less administrative management, the absence of a notarial deed and the simplicity and speed of execution of the payment of your money.

In addition, you have the right to change your loan formula or intermediary at any time, as well as free application and advice.

As always, a wise choice requires a good deal of thought and any decision must be made with respect to your budget reality and your ability to repay. Whether it's a mortgage or a personal loan, surround yourself with good advisors.

At Milenia, we will be able to guide you in the realization of your project. Free of charge and without obligation. Contact us to find out more!

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A first in Switzerland: your 100% digital loan!

For the first time, live the experience of a fully digitized online loan, from the submission of your application to the signing of the contract and the payment of your money.

Your contract, 100% online.

Milenia, focused on simplicity and quality, innovates with a fully online loan. Sign remotely with E-ID and E-Sign, providing a secure and transparent process. No more paperwork, no more travel. Your approach, your pace, our responsibility.

Milenia's values (simplicity, responsibility, clarity and quality) are centred on improving your life; This is our main mission.

This encourages us to constantly evolve and present you with solutions and services that will have a positive impact on your procedures, especially administrative ones.

This is why we offer you, as a first step, to take out your loan in a 100% digital way.

In partnership with Cembra Money Bank, you can take full advantage of your online credit without worrying about paperwork.

Even your credit agreement can now be signed remotely.

This may seem like a no-brainer in a world filled with new technologies, but until now, no one in the personal loan business offered this service.

Those days are now over and we're proud to share it with you!

After all, until recently, all your contract documents were signed manually and sent to partner banks.

That is now history. So forget all postal exchanges, purchases of stamps, envelopes, paper; All you need is an internet connection... That's better, isn't it?

This process required the implementation of new technological tools:

E-ID, which allows you to be authenticated remotely.

It is a digitized proof of identity that allows you to be recognized and to have your financial and administrative transactions carried out electronically.

You will receive a link that you can click on and a caller will ask you to show your ID. That's it!

Then, the E-Sign which gives you the opportunity to sign your documents digitally.

Simplicity and security are guaranteed.

Isn't it more complex than it used to be?

It is legitimate to have this kind of intuition, we present you a totally digital method.

After all, we're moving away from the traditional methods we're used to and moving towards a new solution.

It's called change and it can be scary.

Simplicity above all!

However, with our new online credit offer, all this simplifies your credit application.

No need to move around, everything is accessible on a computer with internet access.

You no longer need to go to our offices, nor do you need to go to the post office.

If you don't need to go to the post office anymore, you don't have to bother with paperwork.

In short, don't waste precious time and move to the digital speed.

As you can see, you can now approach your procedures with much more ease.

Even if you remain skeptical about this transformation, which is perfectly understandable, digital progress allows for better cooperation, more transparency and more service for you, our dear customers.

Everything remains clear. Our advice above all.

You will always have access to an advisor if needed.

The digitization process simply allows you to benefit from a tailor-made approach that meets your financing needs.

While you can rest assured that you can file paper documents manually, don't worry about keeping your documents digital.

This is also safer knowing that your digital documents cannot burn, get lost, wear out... Everything is carefully preserved in a secure space.

This is in accordance with the new data protection law.

When in doubt, our fundamentally human approach remains tangible.

All you have to do is call us or make an appointment at our offices if it seems useful and reassuring. In all other cases, in a few clicks, in a few days, your application is completed, analyzed, submitted, accepted and signed. Your financing follows in the aftermath.

Responsibility is still there!

A responsible approach remains at the heart of our digital initiative.

Authentication process, confidential procedure, access to an advisor... Every step, every need is designed to meet your needs.

No identity theft is possible, no action can be validated without your consent. You are only liable if you wish to do so.

For the electronic signature of your documents, the task is going to be complicated, practice signing on a screen now, it doesn't change anything on paper but you never know. We're joking, of course...

On a more serious note, the electronic signature will concern your credit agreement. No, you won't have to sign on your screen, but you will have an electronic signature that only you will know how to activate.

You have the same rights and protections as before. A two-week right of withdrawal after signing the contract, the possibility of adapting your credit formula, the right to an in-depth analysis of your file to avoid the risk of over-indebtedness, etc.

The digital management of your file from A to Z has no impact on the safeguarding of your rights and the seriousness with which we assume our responsibilities of advice and facilitation is only tenfold.

In a word: Quality.

The cost of this service that leads to less time and hassle? There is none.

Since our creation, our role as a financial platform is simple, clear and responsible financing platform has generated no expense for you.

You won't have to cover any supposed administrative costs or so-called file creations.

Our remuneration is established with our banking partners, not our customers.

Is my access to human advice, delivered by a physical personal advisor, still assured? Yes, of course.

Whether in person, via WhatsApp or by email, your advisor, based in Switzerland, will always be at your disposal.

What do I need to do to activate this digital application process?

Just go to our website. Everything is explained, in all simplicity. Promised!

Can I always count on a highly individualized approach that takes into account my reality and my personal financial situation? That goes without saying!

It's our job, our passion.

Regardless of my signature method, do I still have attractive rates? The best on the market!

As Switzerland's leading financing platform, we offer you the most suitable and favourable solutions and conditions.

For Milenia, technology is synonymous with process improvement.

True to our mission, we work to put this technology at your service, in a fundamentally human way.

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How much does your loan cost?

Repayment of the loan, payment of interest... We explain your payment plan to see the total cost.

A personal loan. What's that?

This is an interest-bearing loan with a warranty.

You have the option to use the money you don't have as you see fit, whether it's bill payments or personal projects.

The repayment of the money paid and the calculated interest, including all fees, is generally done between 12 and 120 months, which directly influences the total cost of your loan.

Of course, an analysis of your preliminary file is carried out in order to confirm your solvency and avoid a case of over-indebtedness.

It is also important to note that consumer credit is regulated by law.

Duration!

We were referring to the repayment period.

This duration obviously influences the amount of your monthly payments, which decreases.

However, the total cost of credit increases with the term.

So you'll pay less, in total, if you pay back in 12 months instead of 36 months.

What is a monthly payment?

This is the monthly amount you will pay to the lender in order to pay off your credit within the allotted term.

If you take out a loan that will have to be repaid in two years, you will have to pay 24 monthly payments.

These 24 monthly instalments will be shown on 24 lines in your amortization table.

What is depreciation?

Imagine that you are loaned CHF 12,000 interest-free and you have to pay that amount back within a year.

This means that you will have 12 monthly instalments of CHF 1,000.

The amortization, i.e. the monthly accounting of each payment made, will be CHF 1,000 per month.

You will therefore amortize the entire loan after twelve months to pay it off.

What about the depreciation table?

It is a simple document that allows you to view, month by month, the portion of amortization and the portion of interest used to pay off your loan as you go along.

An outstanding balance usually accompanies an updated depreciation schedule. This way, you will know how much remains to be repaid to the lender at all times.

The interest?

Of course, a loan is not free; An interest rate is applied.

Depending on the term, the amount borrowed and the contractual terms defined with the lender, interest will be calculated.

This interest covers all the costs related to your loan. It is also a form of remuneration and risk hedging relating to the lending of money over a fixed period. This also covers management costs.

In order to simplify the repayment process, your monthly payments are fixed.

You will therefore pay the same monthly instalment, each month, which includes both the amortization portion of the amount borrowed and the interest.

If you add up all your monthly payments and subtract the amount of the loan, you will know the real cost of your loan.

So I'm paying the same amount of interest every month?

No.

You will pay the same monthly instalment, but the interest and amortization costs vary from month to month.

At the beginning of your repayment period, you'll pay more interest and amortize less.

As payments are made, the interest portion will decrease and the depreciation portion will increase.

This, without the amount of your monthly payments varying and until the total repayment, including interest, of your loan.

What if I can't pay my monthly instalments?

It's common to deal with unforeseen financial events. In this case, it is important to discuss this with your credit partner as soon as possible. Together, you can explore solutions that are right for you. By being transparent and responsive, you will increase your chances of finding a balanced solution. This will prevent you from having problems with the ZEK.

Don't forget that there are rights and obligations that govern the contract signed with the lending bank.

What if, on the other hand, I am able to anticipate the full repayment?

The Consumer Credit Act states that you have the right to pay off your credit at any time.

A refund to your advantage can also be made in the event of an overpayment of interest proportions. Be careful, however, because, even if relatively low, cancellation fees may be charged by the lender. In some cases, there is none.

The best rate. The best service.

As you can see, calculating the cost of your loan and managing your amortization schedule is not complicated in itself.

The important thing is to assess your repayment capacity, control your budget and choose the right partner to build your credit request.

What for?

Taking out a loan is contractually binding. A risk of over-indebtedness must be avoided at all costs.

As soon as your situation is healthy, move forward with peace of mind to carry out your project.

The next step is to build your credit application. To maximize your chances of acceptance, surround yourself with good advisors, experts who are familiar with administrative requirements and know how to prepare and submit your file to lenders.

Finally, opt for a financing platform that has a wide range of banking partners; one that is well-established and adheres to an ethical charter for the benefit of its customers' interests.

A little revision.

1. An amortization is the monthly repayment of your loan.

True or False?

2. Your monthly payments are fixed.

True or False?

3. If you add up all your monthly payments and deduct the amount of your loan, you get the real cost of your loan.

True or False?

4. The portion of the interest paid each month is fixed.

True or False?

5. You'll pay less for your loan if you spread your repayment over a longer period.

True or False?

6. You have the right to repay early.

True or False?

7. Bonus question not provided for in the curriculum. You have to pay a fee to build your credit report.

True or False?

 Answers:

1. V
2. V
3. V
4. F
5. F
6. V
7. F (Opt for a financing platform that has a 0-fee policy, like Milenia!)

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Telecommuting: flop or not?

Since the Covid pandemic, companies have multiplied remote working methods. The most widely used is telecommuting. Two years later, has this method been successful?

Let's take a step back

During the lockdown, the world of work experienced a real shift.

Companies had to adapt and various means were put in place to ensure the continuity of services, sales, and the very functioning of the organization.

Do you remember?

The famous cardboard box filled with a computer, a mouse and a screen that the employees took home...

We somehow settled down somewhere in our apartment or our house.

The less fortunate had to sit on an old table at the back of their bedroom.

Children screamed in the background and parents had to juggle their work responsibilities with those of being a mother or father.

Ah... What wonderful memories!

In addition, the schedules became confused. There was no beginning and no end. We were already connected before, but now the workplace had invited itself into our home, into the family, into our home.

However, not everything had to be thrown away.

The doctor's appointment, the receipt of the Zalando package, the visit of the plumber... What required us to take time off or organize ourselves differently simply fit into his work schedule, on site.

Above all, no more time wasted on the road or on the train. We earned two hours of our living every day. That's no small feat...

We weren't the only ones. Hundreds of millions of people around the world, by obligation or freely, switched to this new way of working.

It was necessary to put in place state-of-the-art technological and IT infrastructures to enable more secure virtual exchanges of information via videoconferencing or e-mail.

It was necessary to set up a teleworking policy to give directives on working hours, the availability of employees and managers so as not to be too intrusive in private life.

Finally, regular reviews were required to assess the effectiveness of telework policies and gather feedback from employees.

The big winners? Zoom, Teams, Skype, Webex... It was a good time and the number of users exploded

Video conferencing platforms

In order to establish clear and effective communication channels, it is necessary to have instant messaging and video conferencing tools to maintain smooth communication between team members. This transition is being made by different players who bring specificities specific to each sector.

You may have seen that.

Some companies will use the Zoom platform, which allows simple video conferences with a discussion thread, which is easy to use and not very connected to other services.

Others will use Microsoft Teams or Webex, which offer more integrated and secure business solutions.

Skype and Google Meet round out the market leaders, at least in Europe.

And what about employers?

The main fear of some employers during this pandemic?

Decreased productivity.

The prevailing thought was that employees, less supervised than before, would work less given this new organizational freedom.

The endless breaks, the last-minute shopping, the Netflix binging...

We're not going to lie, the majority of teleworkers have taken advantage of this to better combine professional and personal needs.

There have been many productivity studies, too many to mention here.

In the end, productivity dropped slightly on average, but this varied enormously depending on the functions and responsibilities.

Profiles whose tasks were recurrent completed their work more quickly and, not needing to do more, to take advantage of the time available to go about their personal business.

Others worked even harder, especially early in the morning, late at night, or on weekends.

Where some managers suffered from a lack of supervision (monitoring?) of their teams; Some employees did not take well to the distance, the lack of clarity on the establishment of rules... All of them missed interpersonal relationships and this may have impacted the corporate culture and sense of well-being.

In conclusion, there is neither one statistic valid for everyone nor a representative feeling of all employers and employees. However, there is no doubt that the world of work has changed and the effects continue today.

Exactly. And today?

Companies are adapting to the demands of employees, especially young people entering the workforce.

They demand flexibility, adapted schedules and, yes, telecommuting.

In Switzerland, the job market is in favour of job applicants. Companies must therefore remain attractive and take these demands into account.

Companies are implementing hybrid work modes that allow the employee more time to work from home but require them to be present for a certain number of days in the office. Again, there is no single rule.

Some organizations simply refuse the principle of remote work.

Others impose a fixed day of attendance.

Some leave the choice to their teams.

One thing is for sure, remote work is here to stay, in one form or another.

More than controlling productivity, more than managing teams and workloads, the real challenge is to keep the links between employees, to ensure proximity between managers and their teams.

Finding a balance between the attractiveness of the employer brand, individual well-being and the needs of the company; This is where the effort must be directed for the future.

At work and at home, Milenia is always available

Accessing credit through our financing platform has never been easier.

Everything is within your reach, with customization according to your projects, we accompany you from start to finish so that your projects can see the light of day.

For your personal loan, we offer the best market conditions with 0 application fees. Everything is designed to make your life easier.

Your loan application can be done entirely remotely, with support from your personal advisor or both at the same time.

The flexibility, adaptability, personalization of your offer... All of this is embedded in our approach and services.

As the leading credit player in Switzerland, place your trust in us so that your personal dreams and projects come true.

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