When do you engage a debt collection agency? The decision point explained

You engage a debt collection agency as soon as your second written reminder is ignored and the time limit of your demand letter has expired. In practice: approximately 30 to 45 days after the original due date, after at least one reminder and — for consumers — a 14-day letter. Rushing things too early halves your chances of payment if you act too late. Below are the warning signs, the legal steps you must take first, and the right moment to take decisive action.

Piet the plasterer once waited four months before calling someone in. By then, the debtor had moved twice, one email had been altered, and it turned out the company was in silent liquidation. A previously engaged collection agency had likely collected the money. Waiting is throwing money away — literally.

The short answer: 5 signals to switch on

1. The due date of your invoice has passed by more than 30 days.
2. You have sent at least one reminder that has not been responded to.
3. For consumers: your 14-day letter has expired.
4. The debtor does not respond or only promises “soon” without paying.
5. The amount is high enough to be worth the effort (for the break-even calculation, see from what amount to engage a collection agency).

Tick ​​off at least three out of five? Then taking decisive action is usually the smartest choice.

What do you need to do yourself first?

The steps before the collection agency, in order:

• Sending a correct invoice. Sounds elementary, and it is — but errors on the invoice (incorrect address, missing VAT, no due date) give the debtor reason to wait. See rules regarding the due date on an invoice.
• A first reminder. Friendly, with a new deadline. No collection fees, no drama.
• A formal demand letter. For consumers, the 14-day letter is mandatory; for business debtors it is not, but it is good practice.
• Perhaps make a few phone calls. Sometimes a phone call solves what a letter doesn't.

Only when these steps yield no results is it time for a collection agency. Do not skip any “tricks” to be faster — those letters provide legal evidence if proceedings become necessary later.

The 14-day letter for consumers

For consumers, a formal notice is not without obligation. Article 6:96 paragraph 6 of the Dutch Civil Code stipulates that you must send a letter with a minimum payment period of 14 days and mention the collection costs the consumer owes if they do not pay within that period. Without this letter, you may not pass on collection costs later — a common mistake that backfires afterwards. More detail in charging collection costs.

How long is waiting too long?

For most claims, the rule is: the older they are, the harder they are to collect. Concrete rules of thumb:

• 30 days after the due date: send a reminder. Many debtors are not yet “lost,” just late.
• 45 days after the due date: send a reminder (14-day letter for consumers).
• 60 days after the due date: engage a collection agency.
• After 90 days: statistically, the chance of full collection is halved. The older, the lower the chance.

The reasons are practical: debtors move, companies go bankrupt, and money flows first to those who ask the hardest. Early action receives more attention than late action.

When exactly not to switch it on?

Three situations where taking a short break is wise:

• For a regular client experiencing a temporary setback. A payment arrangement — sometimes arranged independently, sometimes through a lawyer — preserves the relationship. Also read about payment arrangements that do not go according to plan.
• In the case of a disputed invoice. Is the customer complaining that they did not receive something or that it is defective? Then the out-of-court process is the wrong instrument. Settle the dispute first, then potentially collect. See disputed invoice collection.
• In the case of an unreachable debtor, first investigate: are they still alive, do they still live at that address, are they bankrupt? A collection agency can help, but if the party is truly unreachable, an earlier recovery investigation is more targeted.

The right moment: a short checklist

Before you call or email a debt collection agency, go through these questions:

• Is the invoice correct (amount, VAT, due date, address)?
• Has the debtor been given a fair chance — at least one reminder and (for consumers) a 14-day letter?
• Are my General Terms and Conditions applicable correctly (crucial for passing on interest and collection costs)?
• Is the amount large enough to justify the effort and any potential commission?
• Do I have all the supporting documents (invoice, order confirmation, correspondence) together?

Four times yes? Then you are ready for the next step. For the exact procedure: hiring a collection agency in 5 steps.

Honest recommendation

Do your preliminary work, but don't wait too long. A good rule of thumb: a maximum of 60 days after the due date; otherwise, your chances of payment drop rapidly. If you have doubts about whether your steps are in order—especially regarding the WIK demand for payment to consumers—request a brief legal check before handing it over. An hour with a lawyer prevents you from entering a process that proves to be formally and legally untenable.

Ready to take decisive action? Check out starting debt collection at MKB Juristen or start with the comprehensive guide to hiring a debt collection agency.

Frequently Asked Questions