How to Collect Overdue Payments
A step-by-step guide to recovering unpaid invoices professionally. From prevention to escalation - learn what works and stay compliant with EU/NL regulations.
Why Timely Collection Matters
Unpaid invoices are more than an inconvenience - they threaten your business health. Studies show that the longer an invoice remains unpaid, the less likely you are to collect it.
The Real Impact
- •Cash flow disruption: Can't pay your own bills, suppliers, or employees
- •Lost time: Hours spent chasing payments instead of earning
- •Business relationships: Tension with otherwise good customers
- •Mental stress: The worry of unpaid work weighing on you
Payment Collection Timeline
Follow this proven timeline to maximize your collection rate while maintaining professional relationships.
Prevention
Set yourself up for success
The best way to collect overdue payments is to prevent them in the first place. Clear terms and professional invoicing go a long way.
Clear Payment Terms
State payment terms upfront in contracts and on invoices. "Net 14" or "Due within 30 days" - be specific.
Professional Invoices
Include all required details: invoice number, date, due date, payment methods, and your business details.
Multiple Payment Options
Accept cards, iDEAL, SEPA, and other methods. The easier to pay, the faster you get paid.
Deposits for Large Projects
For big jobs, ask for 25-50% upfront. This commits the customer and reduces your risk.
Payment Terms Template
Payment is due within [14/30] days of invoice date. Late payments may incur a [X]% monthly interest charge and statutory collection costs as per Dutch/EU law.
Friendly Reminders
Most overdue payments aren't intentional
Before due date and shortly after, send polite reminders. Most late payments are simply forgotten or overlooked.
Timing Your Reminders
Friendly Reminder Email Template
Subject: Friendly reminder - Invoice #[NUMBER] is due
Hi [Name],
I hope you're doing well! This is a friendly reminder that invoice #[NUMBER] for [AMOUNT] was due on [DATE]. If you've already sent payment, please disregard this message. If not, I'd appreciate if you could process this at your earliest convenience. Click here to pay now: [PAYMENT_LINK] Let me know if you have any questions!
Best regards, [Your Name]
Pro Tip: Automate Your Reminders
PayRequest can automatically send payment reminders before and after due dates - saving you time and awkward conversations.
Escalation
Increasing urgency professionally
If friendly reminders don't work, it's time to escalate. Add more communication channels and increase the urgency.
SMS Reminders
Text messages have 98% open rates. Send a brief, professional reminder with a payment link.
Phone Call
A personal call shows you're serious. Be professional, ask if there's an issue, and agree on a payment date.
Email with Read Receipt
Formal email requesting confirmation. This creates a paper trail for potential legal action.
Escalation Email Template
Subject: Important - Invoice #[NUMBER] is [X] days overdue
Dear [Name],
Despite previous reminders, invoice #[NUMBER] for [AMOUNT] remains unpaid. This invoice was due on [DATE] and is now [X] days overdue. Please arrange payment within 7 days to avoid further action. If there's an issue preventing payment, please contact me immediately so we can discuss a solution. Pay now: [PAYMENT_LINK]
Kind regards, [Your Name] [Your Business]
Keep Records
Document all communication attempts: dates, times, what was said. This is crucial if you need to escalate to legal action.
Formal Notice
The WIK-brief and demand letters
In the Netherlands, you must send a formal "WIK-brief" (Wet Incassokosten) before charging collection costs. This is a legal requirement.
What is a WIK-brief?
The WIK-brief (from Wet Incassokosten) is a formal final notice required by Dutch law. It gives the debtor 14 days to pay before you can add statutory collection costs.
- Must be in writing (email with read receipt is acceptable)
- Must state the exact amount owed
- Must give 14 days to pay from receipt
- Must warn about collection costs if not paid
- Must include how collection costs are calculated
WIK-brief Template (Netherlands)
Subject: FINAL NOTICE - Invoice #[NUMBER] - 14 days to pay
Dear [Name],
Despite multiple reminders, invoice #[NUMBER] for [AMOUNT] remains unpaid (due date: [DATE]).
According to Dutch law (Wet Incassokosten), this letter serves as a formal 14-day notice. If payment is not received within 14 days of this notice, you will owe additional statutory collection costs calculated as follows:
Collection costs calculation:
| First EUR 2,500 | 15% | min. EUR 40 |
| EUR 2,500 - 5,000 | 10% | |
| EUR 5,000 - 10,000 | 5% | |
| Above EUR 10,000 | 1% | max. EUR 6,775 |
Please pay [AMOUNT] within 14 days to: [BANK_DETAILS] Reference: Invoice #[NUMBER]
This is a final notice before further legal action. Kind regards, [Your Name] [Your Business] [KvK number]
Important Legal Note
Collection cost rules apply only to consumer debts (B2C). For business debts (B2B), you can agree on different terms in your contract.
Late Fees & Interest
What you can legally charge
You're entitled to charge interest on late payments. The rates differ for consumer (B2C) and business (B2B) invoices.
Statutory Interest Rates (2025)
Rates updated January 2025
Collection Costs (B2C)
After sending a WIK-brief and waiting 14 days, you can add these costs:
| Amount | Cost | Rate |
|---|---|---|
| Up to EUR 2,500 | EUR 40 (minimum) | 15% |
| EUR 2,500 - 5,000 | EUR 375 + 10% over excess | 10% |
| EUR 5,000 - 10,000 | EUR 625 + 5% over excess | 5% |
| Over EUR 10,000 | EUR 875 + 1% over excess | 1% |
Maximum: EUR 6,775
Include in Terms
Always mention late payment interest and collection costs in your payment terms. This makes them enforceable and sets expectations.
Final Steps
When to escalate further
If all else fails, you have options. Consider the debt amount, relationship value, and your time investment.
Collection Agency
They take 10-25% of collected amounts but handle everything. Good for larger debts where you want to preserve the relationship.
- Professional handling
- Higher success rate
- No upfront cost
- 10-25% commission
- Slower process
- May damage relationship
Small Claims Court
For debts under EUR 25,000, the Dutch "kantonrechter" offers a simplified procedure. You can do this yourself.
- Lower costs
- Legally binding
- Court orders are powerful
- Takes time
- Requires paperwork
- Court fees apply
Write Off
Sometimes the cost of collection exceeds the debt value. Know when to cut your losses.
- End the stress
- Focus on paying clients
- Tax deductible
- You don't get paid
- Sets precedent
- Frustrating
Decision Guide
How PayRequest Helps
PayRequest automates the awkward parts of payment collection so you can focus on your work.
Automatic Payment Reminders
Set up reminders before and after due dates. Customers get friendly nudges without you lifting a finger.
Learn about InvoicingSmart Payment Links
One-click payment links in every reminder. iDEAL, cards, SEPA - make it easy to pay.
Learn about Smart LinksDunning Management
Automated follow-up sequences for failed subscription payments. Recover revenue on autopilot.
Learn about DunningCustomer Portal
Let customers view and pay all open invoices in one place. Self-service reduces support burden.
Learn about Customer PortalFrequently Asked Questions
How long should I wait before sending a reminder?
Send a friendly reminder 7 days before the due date, on the due date, and 3 days after. If no response, escalate at 7 and 14 days overdue.
Can I charge interest on overdue invoices?
Yes! In the Netherlands, the statutory interest rate is 6% for consumers (B2C) and 10.5% for businesses (B2B). Make sure your payment terms mention this.
What is a WIK-brief and when do I need one?
A WIK-brief (Wet Incassokosten) is a formal 14-day notice required by Dutch law before you can charge collection costs to consumers. It must state the amount, give 14 days to pay, and explain the costs if not paid.
Should I use a collection agency or go to court?
Collection agencies are good for debts over EUR 500 when you want to preserve the relationship. Court is better when you have strong documentation and the debtor is uncooperative. For debts under EUR 100, it may not be worth the effort.
How can I prevent late payments in the first place?
Clear payment terms, professional invoices, multiple payment options, and deposits for large projects all help. Automated reminders from tools like PayRequest catch issues before they become problems.
What if the customer disputes the invoice?
Address disputes immediately. Document everything: contracts, emails, work delivered. If you can't resolve it, consider mediation before court. A disputed invoice is harder to collect through agencies.
Related Resources
Automate Your Payment Collection
PayRequest handles reminders, payment links, and follow-ups automatically. Spend less time chasing payments and more time on your work.