5 tips to get customers to pay faster

Customers pay faster if you invoice on time and without errors, apply a short payment term of 14 to 30 days, include clear sanctions in your general terms and conditions, send consistent reminders, and reward timely payers. A healthy cash flow stands or falls with this combination of prevention and follow-up. Below, you will find five concrete tips to tighten your accounts receivable management and get your invoices paid faster.

A significant proportion of invoices in the SME sector are paid late. This puts your liquidity under pressure: with outstanding receivables, you cannot purchase inventory, pay wages, or make investments. The good news is that you have much more influence on your payment terms than you think. With a structured approach, you prevent most payment problems before they even arise.

Tip 1: Invoice immediately and error-free

Many entrepreneurs stick to the monthly "hourly billing" model: on the last working day of the month, all invoices are sent out at once. Convenient for the administration, but disastrous for your cash flow. If you wait four weeks to invoice and then offer a payment term of thirty days, you will soon be facing an outstanding balance for sixty days—and that is only if the customer pays on time.

Therefore, invoice as soon as possible after delivery, ideally weekly or even per order. The sooner the invoice is sent out, the sooner the money will be in your account.

Furthermore, ensure that your invoice is correct. A missing order number, an incorrect VAT amount, or an incorrect address gives the customer a legitimate reason to withhold payment. In any case, check before shipment:

• the correct name and address details of your customer;
• a unique, sequential invoice number and the invoice date;
• the correct VAT amount and your VAT identification number;
• a clear description of the service provided or the order number;
• the payment term and your bank details.

Tip 2: Keep the payment term short

The payment term on your invoice largely determines how quickly you receive your money. If no agreement is made, a statutory payment term of 30 days generally applies in a B2B relationship. Parties may agree on a longer term together, but for commercial transactions, a term of more than 60 days is generally not permitted.

Moreover, since July 1, 2022, an important rule applies: large enterprises must pay invoices from SMEs and self-employed professionals within 30 days. They are not permitted to enforce a longer term. If a large customer pays late, they are generally liable for interest on the excess amount by operation of law.

In practice, many entrepreneurs consciously choose a shorter term. A payment term of 14 to 30 days is common; many freelancers use 14 days. The shorter the term, the faster your invoice will be paid, provided you adhere to that term.

Adjust the term to payment behavior

Take historical payment behavior into account. You do not automatically have to grant a generous standard term to customers who previously paid late. By applying a shorter term or prepayment to notorious late payers, you limit your risk and can take action more quickly.

Tip 3: Stipulate sanctions in your general terms and conditions

Customers who do not pay on time must realize that this has consequences. Therefore, ensure that your invoice terms monitor the payment period. Consider a penalty clause (compensation for collection costs) and charging interest for late payment. In commercial transactions, statutory commercial interest may be payable under certain conditions, which is substantially higher than the standard statutory interest.

Dare to actually charge that interest and costs. Freelancers, in particular, find this difficult, but you are your customer's supplier, not their lender. A brief, businesslike explanation (you must also meet your own obligations) usually suffices.

Please note: sanctions are only enforceable if your general terms and conditions are legally sound and demonstrably applicable to the agreement. For example, the terms must have been provided in a timely manner; otherwise, your customer may invalidate them. Have your general terms and conditions drafted or reviewed by a lawyer so that your penalty clauses and interest stipulations hold up in the event of a dispute.

Tip 4: Implement an active accounts receivable policy

A healthy cash flow requires follow-up. Establish a fixed step-by-step plan in advance outlining the moments when you take action, so that follow-up does not depend on chance or a lack of time. A good accounts receivable policy begins even before delivery, with a creditworthiness check for larger or new orders.

A workable debt collection process often looks like this:

1. Friendly reminder by email shortly after the deadline has expired.
2. Contact by telephone if the reminder yields no response; personal contact resolves many situations immediately.
3. Formal demand (notice of default) with a final reasonable payment term.
4. Collection measures if payment is still not received.

Personal contact works: a short, friendly round of phone calls often generates more movement than yet another automated email. Only after a proper demand letter with a final reasonable deadline can you generally claim interest and collection costs and potentially take further steps. If you are unable to do it yourself, have MKB Juristen draft a demand letter or engage our collectionspecialists.

Tip 5: Reward customers who pay on time

Accounts receivable management does not have to be solely about sanctions and rigid terms. You can also reward prompt payers, for example with a modest payment discount for those who settle within a few days. A discount of a few percent often does not outweigh the administrative burden and cash flow risk associated with late payers.

Additionally, make payment as easy as possible. Send your invoice digitally and include an iDEAL payment link or a payment QR code so that the customer can pay immediately. The lower the barrier, the faster the payment.

A payment discount has implications for your VAT and turnover administration. Coordinate its implementation with your bookkeeper in advance.

Frequently asked questions about getting paid faster

What is the statutory payment term for an invoice?

If no agreement is made, a payment term of 30 days generally applies in a business (B2B) relationship. A longer term may be agreed upon by mutual consent, but in commercial transactions, more than 60 days is generally not permitted. Large enterprises must pay invoices from SMEs and self-employed professionals within 30 days.

Am I allowed to charge interest and collection costs for late payment?

Yes. If the payment term has expired, you can generally charge interest and extrajudicial collection costs. For business customers, statutory commercial interest may be due. For private individuals, additional rules apply, and you must first send a formal notice with a final payment term (the so-called “fourteen-day letter”). Seek advice regarding the exact amounts and conditions.

When am I allowed to take collection measures?

As a rule, only after you have put the customer in default with a formal demand and a final reasonable payment term. If payment is still not made, you may take further collection steps. A proper formal demand is therefore a prerequisite for claiming interest and costs.

How do I reduce the risk of default in advance?

For new or large orders, conduct a creditworthiness check, use clear general terms and conditions, work with (partial) prepayment where possible, and invoice immediately after delivery. Prevention is always cheaper than collecting after the fact.

What needs to be on my invoice to prevent payment problems?

In any case, include the correct name and address details, a unique invoice number, the invoice date, a clear description of the service, the correct VAT amount, your VAT identification number, and the payment term. A correct invoice removes any reason for the customer to withhold payment.

Need help getting paid faster?

Do you want to make your accounts receivable management legally watertight? MKB Juristen drafts or reviews your general terms and conditions , handles reminders , and assists you with debt collection if a customer fails to pay. Do you have another legal issue? Then take a look at our legal assistance for entrepreneurs.

Would you prefer to discuss your outstanding invoices directly with a lawyer? Schedule a no-obligation intake and discover how to get paid faster.