Reimbursement is a system for financing projects from EU funds, in which the recipient first covers expenditure from their own resources and subsequently requests its reimbursement through a payment request. After an administrative check of the eligibility of expenditure, the provider transfers the approved amount to the recipient's account. Reimbursement is the standard system particularly for business entities, which, unlike the public sector, do not have an automatic entitlement to pre-financing. The main disadvantage is the burden on cash flow – the recipient must have sufficient working capital or a bridging loan available for the period between paying invoices and receiving payment, which can last several months. The advantage is lower administrative risk, since expenditure that has already been incurred and documented is reimbursed. The frequency of submitting reimbursement requests is determined by the non-repayable financial contribution agreement.
See also: Payment claim.
