It happens in every company that invoices remain unpaid even after sending a payment reminder and final notice. In these situations, it is important to maintain strict credit management and take immediate action after the payment term has expired. Although it is possible to hand over unpaid invoices from companies directly for collection, it is more customer-friendly to first write an invoice letter and send a reminder. For example, follow our step-by-step plan for unpaid invoices. When reminding consumers, there are legal requirements for a final notice.
Legal requirements for final notice to consumers
If consumers let the payment term expire, it is mandatory to act according to the rules of the Debt Collection Costs Act (WIK). This means that you must send at least one reminder to the consumer. In the reminder, you give the customer fourteen days to settle the bill without incurring collection costs. Due to the time period, this letter is also known as the fourteen-day letter. If the customer still does not pay, it is possible to hand over the claim for collection after fourteen days.
Mentioning collection costs in the final notice
It is important to include in the fourteen-day letter what the collection costs will be if the customer does not pay the invoice within fourteen days. The final notice is not valid if the mention of collection costs is omitted. Moreover, the term only starts running from the moment the consumer receives the letter. Therefore, it is important to include a correct provision in the final notice. State that collection costs are due if the invoice is not paid within fourteen days from the day this notice is received.
Stating the amount of collection costs
It is mandatory to state the amount of the collection costs, such as the principal sum and statutory interest, in the final notice. When delivering the fourteen-day letter, it is considered received on the second day after dispatch. Days when no post is delivered, such as Sunday, Monday, and public holidays, do not count. To prevent a consumer from claiming not to have received a letter, it is advisable to also send the final notice by email and request confirmation of receipt.
- Indicate that collection costs are due if payment is not made
- State the amount of collection costs (principal sum and statutory interest)
- Include the correct provision in the final notice
There are also some standard requirements:
- Invoice number
- Customer number or order number (if applicable)
- Invoice date
- Outstanding amount
- Payment term
Final notice for companies
There are also companies that ignore invoices and do not pay. Since there is no legal obligation to send a reminder or final notice to companies, it is possible to hand over the claim directly. However, this is not a customer-friendly method and can obviously have a negative impact on the business relationship. Therefore, it is advisable to send a reminder first. For example, there may be a misunderstanding or another issue as to why the debtor is not paying.
Improve payment behaviour with Payt
It is important that debtors pay quickly to keep the cash flow optimal. Payt has a customer-friendly system available for properly executing the debtor process with a fully automated process. By maintaining a fixed workflow, there is an improvement in the payment amount;
- Invoice dispatch: as soon as possible
- 2 days after due date: first reminder
- 18 days after due date: second reminder
- 34 days after due date: final notice/WIK
- 50 days after due date: start collection procedure
Payt also offers the possibility to arrange a payment plan. The reason that defaulters do not pay invoices is in most cases not unwillingness. A payment plan is then a pleasant alternative to a collection process. Therefore, choose Payt. In addition to automated follow-ups and payment plans, it is also possible to link Payt to various integrations. Do you have questions about Payt? Feel free to contact us.
What is the difference between a payment reminder and a final notice?
A payment reminder is a notification to a debtor to remind them in a friendly manner to pay the invoice. It is important to keep the terms as short as possible and send a first reminder two days after the invoice’s due date. A second reminder is also a friendly method to remind the customer of the bill. If payment is still not made, a final notice follows 34 days after the due date. A final notice is stricter in tone than a payment reminder and gives the debtor a last chance to pay the invoice. In that respect, the final notice can also be seen as a summons. You indicate that if payment is not made, the claim will be handed over for collection or submitted to the court.
What to do if payment is not made after the final notice?
Unfortunately, there are consumers and companies that do not pay even after a final notice or summons letter. In that case, there are several options to get the invoice, collection costs, and statutory interest paid. For example, it is possible to immediately engage a bailiff to start legal proceedings. Another option is to hire a collection lawyer who can draft a summons. A third option is to engage a collection agency, but such an agency has no means to enforce payment.
