What to do with a client who doesn't pay?
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
With a consumer you may only charge collection costs after a free reminder with a fourteen-day term; the scale starts at 15 per cent over the first 2,500 euros, with a 40 euro minimum.
- Up to 25,000 euros you can go to the sub-district court without a lawyer.
- Between businesses, the default payment term is 30 days, with a maximum of 60 days.
- If payment definitively fails, you reclaim the VAT after a year and write the amount off as a cost.
- With a due, unpaid invoice you may suspend your work, provided you announce it in writing.
Sooner or later it happens to almost every entrepreneur: a client who doesn't pay your invoice. That's frustrating and puts pressure on your cash flow. Fortunately you can take steps to still get your money. This article gives a practical step-by-step plan.
Start with a reminder
The first step is a friendly payment reminder. Often an unpaid invoice is simply forgotten. Send a polite reminder with the invoice details and a new payment term. In many cases payment then still follows.
Send a formal reminder
If the reminder doesn't help, you send a formal reminder, a more formal letter demanding payment within a certain term. In it you can indicate that you'll take further steps if payment doesn't come. Keep the tone businesslike but clear. What you may charge in statutory commercial interest and collection costs is covered in payment terms and collection costs.
Engage a collection agency
If payment still doesn't come, you can engage a collection agency that collects the claim on your behalf. There are costs involved, but for larger amounts it can be worthwhile. A final step is legal proceedings, but those are often costly and time-consuming.
How do you prevent non-payers?
Prevention is better than collection. Invoice right after the work, use clear payment agreements, and for large or new jobs possibly ask for a deposit. Good receivables management reduces the chance that you have to chase your money.
From reminder to court: the escalation ladder
Escalate step by step and record every step in writing. Not just for courtesy: at collection or in court, your file is the evidence.
| Step | What and when |
|---|---|
| 1. Reminder | Friendly, shortly after the due date |
| 2. Call | Ask what is going on; often something else is at play |
| 3. Demand | In writing, a new term; for consumers the mandatory 14-day letter |
| 4. Final notice | Last chance, announcing interest and collection costs |
| 5. Collection or court | A collection agency, or up to € 25,000 yourself at the sub-district court |
Is the assignment still running? Consider pausing the work
If you are still working for the same client while old invoices sit unpaid, you need not keep delivering as if nothing is wrong. Announce in writing that you are pausing the work until the outstanding invoices are settled, and refer to your terms and conditions if they contain a clause on this. Do it neatly and announced: stopping cold mid-critical-phase can earn you a damages claim instead.
Often the announcement alone is enough. A client who needs your work to move forward suddenly finds the money after all.
If your client goes bankrupt
If your client goes bankrupt, the game changes: reminders and collection are pointless. You file your claim with the administrator and join the back of the creditor queue, usually with little prospect of payment. Focus on what you can arrange: reclaiming the VAT on the uncollectable invoice and booking the loss as a cost. What else you can do is covered in client bankrupt, now what.
Frequently asked questions
When may I charge collection costs?
With business clients right after the due date, if your terms arrange it. With consumers only after the mandatory free demand with a fourteen-day term.
How much may I charge in collection costs?
Per the statutory scale: 15 per cent over the first € 2,500 with a € 40 minimum, tapering above. Agreeing more is allowed with business clients through your terms.
Is a collection agency or going to court yourself better?
Up to € 25,000 you can go to the sub-district court without a lawyer; for an undisputed claim that is often effective. An agency is less work but takes a share. Weigh the amount against the effort.
May I halt my work until payment arrives?
With a due, unpaid invoice you may in principle suspend your obligations. Announce it in writing and stay reasonable; stopping abruptly mid-critical phase can backfire.
The client disputes the invoice. Now what?
Then it is not a collection case but a substantive dispute. Respond to the objections in writing, seek a solution and record the outcome. Collection on a disputed claim usually stalls.
What if the client goes bankrupt?
File your claim with the administrator; as an ordinary creditor you usually receive little. At least reclaim the VAT through the irrecoverability scheme and write the claim off as a cost.
Sources
- Level of collection costsRijksoverheid · rijksoverheid.nl
- Payment terms, collection costs and statutory interestOndernemersplein · ondernemersplein.overheid.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
