What if a customer doesn't pay your invoice?
In this video, I will take you through what you need
to know and arrange to get your money.
Let's start with step one: Remind your customer of the invoice.
Call your customer.
In most situations, personal contact with your customer works best.
Ask whether the product or service was satisfactory
and whether the invoice was correct.
The personal approach will allow you to ask
why your customer has not paid.
Always take notes of these telephone conversations.
You can also send a letter or an email.
Send a payment reminder.
The payment reminder is the first formal step
if you have not been paid within the agreed period.
You should send this reminder a few days after the payment deadline has passed.
Tell them that you will charge the statutory interest if they do not pay.
You can find the statutory interest rate on rijksoverheid.nl.
Do you have a digital invoicing system?
Then you can automatically send payment reminders
when the payment term expires.
Now we go to step two: take the right follow-up steps.
Send a free reminder.
Is your customer a consumer?
Then you are obliged to first send a free reminder.
This is a formal letter, also known as a demand letter.
In it, you mentioned the delivery, invoice and payment reminder.
You must give the customer at least 14 days to pay.
And you must also mention the collection costs and legal action.
If payment is not made.
Send the free reminder both by registered mail,
with confirmation of receipt and by regular mail and keep copies.
Email is also an option.
Is your customer a business?
Then you are not obliged to send a reminder.
You can then follow your own collection procedure.
If you have described this in your general terms and conditions.
Charge collection costs and statutory interest.
Does your customer pay your invoice late or not at all?
Then you may charge collection costs and statutory interest.
Collection costs are the costs you make as a creditor to get your money.
Arrange a payment plan.
First discuss whether the customer can pay
your invoice with, for example, a week's delay.
Is this not possible for your customer?
Then agree on a payment arrangement.
Put this arrangement in writing and state that the arrangement will expire,
if your customer does not pay at the agreed time.
Has the invoice still not been paid?
Then consider hiring a debt collection agency, a bailiff or lawyer.
They will arrange payment for you.
Is your customer abroad?
Well, then you can also hire a debt collecting agency.
Did you try that and it didn't work?
And is your customer staying in another EU country?
Then you can start a European payment order procedure.
Use other legal means.
There are three more ways to try and get your money.
By retention of title.
Do your general terms and conditions include a retention of title clause?
Then you remain the owner of a delivered product until the customer has paid.
You can reclaim your delivered goods as long as your customer does not pay.
By right of reclamation.
This is a legal provision that allows you to reclaim
delivered goods if your customer does not pay.
This is also possible in the event of suspension of payment
or bankruptcy of your customer.
By offsetting.
Does your business also buy products or services from your customer?
Perhaps you yourself still have an outstanding amount.
In that case, you can offset your own debt
against the money to which you are still entitled.
This is also possible in the event of bankruptcy.
You can only do this if your customers general terms
and conditions do not forbid offsetting.
Please note that invoices have a limitation period.
This means that when the payment term expires,
your customer no longer has to pay the invoice.
If you remind your customer of the invoice before the end of the limitation period,
the limitation period starts over again.
This is called interruption.
On to step three: Limit your damage.
Reclaim VAT.
When you send an invoice to your customer.
You must declare and pay the VAT on it.
But what happens if your customer does not pay
the invoice or only pays it partially?
Then you will not be paid the VAT,
even though you have paid it to the Netherlands Tax Administration.
You can claim this VAT back.
File for your customers bankruptcy.
Did your customer not pay your invoice in the end?
Then you can file for your customer's bankruptcy.
Has your customer already been declared bankrupt?
Submit your payment claim to the curator as quickly as possible.
This is called submitting for verification.
It is best to consult a specialised advisor for this.
We move on to step four: Ensure security.
Prevent the risk of non-payment.
There are several ways to prevent financial damage
if customers do not pay.
For example, by taking out credit insurance, by checking
the financial situation of your business customers.
Use the KVK Business Register for this, for example.
Or by including in your general terms
and conditions that you will stop delivering in the event of late payment.
By following these steps, you will know exactly what you can do to get your money.
Want to know more?
Then go to Business.gov.nl.