Payment claim

What it means

A payment claim is the formal document by which the recipient of EU funds or another grant asks the provider to release money. It is usually submitted electronically through the monitoring system and lists the eligible expenditure declared, with supporting documents: invoices, contracts, bank statements and proof of delivery.

There are several types of claim. With reimbursement, the recipient first pays the costs from its own resources and then asks to be reimbursed. With an advance payment, it receives part of the money up front and settles it later. With pre-financing, the provider pays suppliers' unpaid invoices. The final payment claim closes the financial implementation of the project.

The provider checks the claim administratively and often on the spot. It verifies that the costs belong to the project, comply with the contract and budget, were procured under the rules and are correctly recorded. Only after approval is the money released. Checks can take weeks or months, and the provider may request additional information.

How it works in practice

When planning a project, it is essential to allow for grant money arriving with a considerable delay. The company must have enough cash or a loan to pre-finance all costs, including VAT. Splitting the project into several smaller payment claims can improve cash flow, as money arrives in stages.

The quality of documentation decides how fast reimbursement comes. Invoices must carry the project code and match budget lines, payments must go from the account named in the contract, and procurement must be documented. Project costs are kept separately in the accounts so they can be clearly evidenced. Errors lead to requests for more information and delays.

After approval, the provider pays the grant and the company records it under the grant accounting rules. If the provider rejects some costs, the company bears them itself and its co-financing rises. After the final payment, the project durability period begins.

What to watch out for

The most common reasons for cuts are breaches of procurement rules, costs outside the eligible period, missing proof of delivery or discrepancies between invoice and contract. Procurement errors attract financial corrections calculated as a percentage of the contract value, which can be high.

Watch the deadlines. The contract sets when claims must be submitted, and costs claimed late may not be reimbursed. Requests for additional information must also be answered on time. We recommend keeping a project deadline calendar and appointing a person responsible for communication with the provider.