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Drafting a demand letter involves setting out the outstanding amount, the invoice number, a specific payment term, and the consequences of non-payment in a single clear letter. For a business debtor, the tone may be immediately businesslike; for a consumer, the letter must comply with the statutory fourteen-day notice requirement under the Collection Costs Act (WIK), otherwise your right to collection costs lapses. Below is a detailed breakdown of the required elements, the wording to avoid, and how to correctly announce collection costs and interest.
The short answer
- Details: your company, the debtor, date and the invoice number.
- Outstanding amount: principal, original maturity date, any interest.
- Concrete term: a date or number of days within which payment must be made.
- Consequences: announced collection costs and statutory interest in the event of non-payment.
- Consumer: fourteen-day letter stating the deadline from receipt and the exact collection amount.
- Payment details: account number and payment reference to facilitate payment.
This is how you structure a demand letter
A good reminder is short, factual, and leaves no room for misunderstanding. The core: state which invoice is outstanding, what still needs to be paid, within what timeframe, and what will happen if payment is not received. Avoid accusations and lengthy explanations — that weakens the letter and yields no results in legal proceedings.
In any case, include: the date, your name and address details (NAW and Chamber of Commerce registration number), the debtor's details, the invoice number and the original due date, the outstanding amount, the new installment, the announced consequences, and the payment details.
The mandatory components for a consumer
If the debtor is a consumer, the demand letter immediately serves as the statutory fourteen-day notice. This must comply exactly with the WIK (Article 6:96 of the Dutch Civil Code), otherwise the court will later reject the collection costs. Include:
- A payment term of at least 14 days, calculated from the day after receipt of the letter.
- The wording “within 14 days after this letter has been delivered to you” — not “after the date of issue”.
- The exact amount of collection costs resulting from non-payment within that period.
- In the case of non-refundable VAT: a statement that VAT is charged on the collection costs.
Correctly announce collection costs and interest
Announce the consequences concretely so that the debtor knows what non-payment costs. For consumers, the statutory scale applies:
- 15% on the first €2,500, with a minimum of €40.
- 10% on the next €2,500.
- Subsequently, decreasing percentages up to a legal maximum.
If you charge interest, state whether it concerns statutory interest (consumer) or statutory commercial interest (business). For business debtors, you are often allowed to charge a fixed amount of at least €40 in collection costs, unless the contract stipulates otherwise.
Show: demand, summons or notice of default
The tone of your letter depends on the phase:
- Demand letter: commercially neutral, with a clear deadline and announced consequences.
- Demand letter: more strictly worded, final deadline, explicit warning that legal action will follow otherwise.
- Notice of default: formal-legal; you put the debtor in default to trigger default (Art. 6:82 BW). Necessary if you later wish to claim damages or dissolve the contract and no fixed deadline applied.
In practice, a carefully drafted reminder or fourteen-day letter often already contains the elements of a notice of default, so that you can proceed immediately in the event of non-payment.
Common mistakes
- “Within 14 days of the date” for a consumer — the time limit must run from receipt.
- the collection amount is not stated in the fourteen-day letter, your right to those costs lapses.
- Unclear amount or missing invoice number — gives the debtor an excuse.
- Accusatory tone instead of factual finding.
- No proof of shipment — keep a copy and, if applicable, a shipment receipt.
Practical example
An installation company has an outstanding balance of €3,400 with a business client. The formal notice lists the invoice number, the due date, the principal amount, a term of 7 days, and a notification of €40 in collection costs plus statutory commercial interest. The client pays within the deadline — the businesslike, factual tone and the concrete amount made the urgency clear without the need for further action.
Honest recommendation
You can usually draft a demand letter to a business client perfectly well yourself — keep it short, factual, and concrete. You can also send a fourteen-day notice to a consumer yourself, but precision is crucial here: one incorrect phrasing regarding the deadline or a missing collection amount will cost you money later. You do not need a lawyer for a routine demand letter using a correct template. However, do seek help for a disputed or large claim, when a debtor announces counterclaims, or when you want to be certain that your fourteen-day notice is legally sound.
Get started immediately: reminder notice, background on what a reminder notice is and outsourcing via having a reminder notice drafted.
Frequently Asked Questions
Your company details, the debtor's details, the date, the invoice number, the original due date, the outstanding amount, a specific new payment term, the announced consequences (collection costs and interest), and the payment details. For consumers, additionally the statutory fourteen-day notice elements.
Use “within 14 days after this letter has been delivered to you”, not “after the date of issue”. The statutory period of at least 14 days does not start running until the day after receipt. A period that is too short or incorrectly calculated renders the letter invalid as a basis for collection costs.
For consumers: yes. The fourteen-day notice must state the exact amount of collection costs that will follow if payment is not made within 14 days. If this is missing, the judge may reject the collection costs. For companies, this is not mandatory, but it is advisable.
For consumers, the statutory interest rate; for businesses, the (higher) statutory commercial interest rate. State which interest rate you charge and from which date. The interest accrues from the date of default, usually after the original due date or after the given term.
Businesslike and factual. A formal notice is neutral but clear; a formal demand may be stricter, with an explicit warning of legal action. Avoid accusations and emotion — a factual finding with a concrete deadline works better and holds up in legal proceedings.
Yes. Keep a copy of the letter and preferably proof of postage. In legal proceedings, you must demonstrate that the debtor was formally notified and what timeframe was given. For consumers, the date of receipt counts towards the fourteen-day period.
Yes, provided the template complies with the WIK requirements for consumers. A good template contains all mandatory components and the correct wording of the time limit. For large or disputed claims, it is advisable to check with a lawyer whether the letter is legally sound.
