When do you send a reminder?
You send a formal notice after the payment deadline has passed and a friendly payment reminder has yielded no results. The formal notice is the formal step in which you give the customer a final deadline
to pay — clearly stating the consequences if payment is not received.
For business clients, a formal demand for payment is not legally required, but it is advisable. Without a formal demand, in many cases you cannot claim statutory interest and collection costs. For consumers, a
proper formal demand is legally required before you may charge collection costs.
What must be included in a demand letter?
A legally correct formal notice contains at least:
– a clear reference to the outstanding invoice with invoice number and amount
– the date on which the payment term has expired
– a firm payment deadline — usually 5 to 14 days for business customers, at least 14 days for consumers
– a notification of the consequences: statutory (commercial) interest, collection costs, and further legal action
Preferably send the reminder both by email and by registered mail. This way, you can later prove that the customer received the reminder.
Reminder to a consumer: the 14-day period
If you have a private customer who fails to pay, you are legally obliged to send a so-called 14-day letter. In this letter, you give the consumer 14 days to pay free of charge. Only
after this period has expired may you charge collection costs.
If the demand for payment does not meet the legal requirements, the judge may reject the collection costs — even if the principal amount is awarded.
Reminder to a business customer
For business customers, the rules are less strict, but the formal demand letter is the pivotal point of the collection process here as well. A well-formulated formal demand letter places the customer in legal default, opens the way to statutory commercial interest (in 2026: 12.50%), and lays the foundation for further legal action.
Please note: do not explicitly state in the reminder which reminder it concerns ('first reminder', 'second reminder'). The customer then knows that more will follow and has less reason to pay quickly.
When is a reminder not enough?
If the customer disputes the content of the invoice, a standard reminder is not the right step. A legal assessment is required first: is your claim strong enough? Is the customer in default? What is the best tone and strategy? We will draft the reminder for you or assess whether a notice of default or a formal demand would be more sensible.
