Drafting a payment reminder: this is what belongs in it

You draft a payment reminder by stating in one clear message: which invoice is involved, the outstanding amount, the original due date, the new deadline by which you expect payment, and what will happen if payment is not received. For consumers, you must format this final step in the form of a fourteen-day notice (Art. 6:96, paragraphs 5 and 6 of the Dutch Civil Code); otherwise, you may not charge collection costs later. For business clients, a business demand letter with reference to commercial interest suffices.

The short answer

1. Invoice details: number, amount and original due date.
2. New installment: a specific date by which you expect payment at the latest.
3. Payment instructions: account number and reference, so that payment is simple.
4. Consequences: notification of interest and collection costs in the event of non-payment.
5. Consumer check: for a consumer, the mandatory fourteen-day letter with notification of costs.

Drafting a payment reminder: the standard components

A good reminder is short, factual, and leaves no room for misunderstanding. In any case, include:

• Salutation and date: addressed to the correct party, with the date of the reminder.
• The outstanding invoice: invoice number, amount including VAT, and the due date that has passed.
• The new term: for example, payment within seven or fourteen days, with a specific end date.
• Payment details: IBAN and a clear payment reference or the invoice number.
• Consequences of non-payment: statutory interest and extrajudicial collection costs, and that you will otherwise hand over the claim to a debt collection agency.
• Signature: name and contact details, so that the customer can respond in the event of a dispute.

The legal anchors in your letter

The reason why those elements matter lies in default law. You can only recover interest and collection costs once the customer is in default. In the case of a fixed payment deadline, default occurs automatically as soon as that deadline expires (Art. 6:83 sub a BW). If there is no fixed deadline, you must first send a formal notice with a reasonable period (Art. 6:82 BW). Your reminder is therefore often precisely the document that initiates the default, provided you clearly state a final deadline and the consequences.

For business transactions, the statutory commercial interest (Art. 6:119a BW) applies to interest, and for consumers, the ordinary statutory interest (Art. 6:119 BW). Extrajudicial collection costs are calculated in accordance with the Decree on Compensation for Extrajudicial Collection Costs, which uses a sliding scale with a minimum of 40 euros.

Consumer versus business customer

The difference between a consumer and a business customer determines the structure of your letter. With a consumer, you may only recover collection costs if you have first sent a no-cost demand letter with a fourteen-day period, in which you announce the exact costs (Art. 6:96, paragraphs 5 and 6 of the Dutch Civil Code). The period only starts running from the day after receipt, so formulate the date with sufficient scope.

With a business client, you have more freedom. You may charge commercial interest after the due date and can announce collection costs without the strict fourteen-day format. However, it is advisable to specify a concrete timeframe and the consequences here as well, so that you can demonstrate that you have sent a formal demand for payment.

Tone and timing

The first reminder may be friendly. Many customers have simply forgotten the invoice, and a neutral tone maintains a good relationship. If payment remains overdue, switch to a formal demand letter: a strict deadline, reference to interest and costs, and the announcement that you are handing over the claim for collection. Structure the letters so that each subsequent step carries more weight than the previous one.

A practical example: an installation company provides maintenance to a hospitality business and invoices €1,500 with a payment term of thirty days. After the due date, the company first sends a short reminder with a new payment term of ten days. If payment is not received, a formal demand follows in which commercial interest from the due date and collection costs according to the sliding scale are announced. In this way, the claim is ready for collection without loose ends.

Common mistakes

• No concrete timeframe: without an end date, it is difficult to prove default.
• Charge costs immediately to consumers: without a proper fourteen-day notice, your right to collection costs lapses.
• Incorrect address: address the letter to the party listed on the invoice and in the agreement.
• Interest and costs mixed up: keep commercial interest, statutory interest, and collection costs separate and calculate them correctly.
• No file: keep the proof of dispatch and copies, so that you can substantiate later that you sent a reminder.

Honest recommendation

For a standard invoice, you can easily draft the reminder yourself. With a good template, a specific deadline, and, for consumers, a proper fourteen-day notice, you have everything you need. You do not need a lawyer for this, as long as the claim is not disputed and the amounts are clear.

Do seek assistance if the customer disputes the content of the invoice, if the payment terms are unclear, or if it involves a large amount where an error in the interest or cost calculation has immediate consequences. On those points, the precise wording determines whether you can actually collect later.

Also read about the legal implications of a reminder under what a payment reminder is and when outsourcing pays off when having a payment reminder drafted. You can find a ready-made document on the payment reminderpage.

Frequently Asked Questions