If an invoice is not paid within the specified payment period, you should first send your customer a free payment reminder. This is effectively a first reminder.
If there is no reaction and the payment is still not received, you can send another, more official payment reminder. As a rule, you will charge a reminder fee.
If the customer still does not pay, you can send a third reminder. In this case, you threaten the defaulting customer with debt collection if the amount (plus interest on arrears and reminder fees) is not received within the specified period.
Payment reminders can be sent informally, for example by e-mail. For reminders, it is advisable to send them by registered mail with confirmation of receipt.
If payment is still not received, you can take legal action, i.e. pursue the debtor or commission a collection agency such as Coface to collect the outstanding debt.
Note: By law, you are not required to send payment reminders or dunning letters. You could also pursue the customer directly if payment is not received within the specified payment period. However, in the spirit of a good business relationship, it is advisable to first try by sending friendly requests before initiating a debt collection procedure.
Hire us to collect your unpaid debts:
- This way you will receive your money as soon as possible.
- You save time and nerves, which you can use for your actual business.
- You only pay us a commission if we successfully collect the money for you.
