Payment terms and collection costs: what the law already arranged for you
Written by Ilias Aarrass6 min read · Last reviewed on 
Written by Ilias Aarrass6 min read · Last reviewed on Many freelancers feel powerless against slow-paying clients, but the law has arranged surprisingly much for you. There are statutory payment terms, an automatic interest claim on late payment and a fixed scale for collection costs. You only need to use them. This article lays out the rules; the practical step-by-step for a defaulter is in client not paying: what to do.
The statutory payment terms between businesses
Absent agreement, a 30-day term after invoice receipt applies between businesses. Contractually you may agree longer up to 60 days; beyond that only exceptionally, and never grossly unfair to the creditor. For one situation the law is stricter: a large company buying from an SME supplier or freelancer must pay within 30 days, full stop. A corporate putting 60 or 90 days in its purchasing terms does so unlawfully towards you, and such a clause is void: 30 days applies automatically.
Past the due date: interest without a reminder
From the day after the due date, statutory commercial interest accrues automatically on the invoice amount; no reminder or notice of default is required. The commercial rate is set every six months and has hovered around 10 percent annually in recent years, well above the ordinary consumer rate. On a € 5,000 invoice paid three months late, that is already over € 120. You need not claim the interest, but you may, and merely mentioning it in your reminder noticeably speeds up payments.
Collection costs: the statutory scale
Extrajudicial collection costs follow a fixed statutory scale over the principal, with a € 40 minimum. Business clients may be charged immediately after the due date; consumers first receive the mandatory free reminder with a fourteen-day window.
| Over the principal | Percentage |
|---|---|
| First € 2,500 | 15% (minimum € 40) |
| Next € 2,500 | 10% |
| Next € 5,000 | 5% |
| Next € 190,000 | 1% |
| Above that | 0.5% (capped at € 6,775 total) |
Worked example: unpaid invoice of € 4,000
- 15% over the first € 2,500
- € 375
- 10% over the remaining € 1,500
- € 150
- Total collection costs
- € 525
- Plus commercial interest from the due date
- accrues automatically
Result: You may claim € 525 in collection costs on top of principal and interest; exactly the figure to name in your final demand before starting formal collection
Anchor it in your terms and on your invoice
The law works without agreements, but clear agreements work faster. Put your term in your quotation and terms and conditions, repeat it on the invoice with a concrete due date, and state that past due, statutory commercial interest and scale-based collection costs apply. Choose 14 or 21 days yourself instead of 30: customary, and it keeps your debtor management tight. And if payment still never comes, remember to reclaim the VAT on the bad debt.
Frequently asked questions
May I charge collection costs without a collection agency?
Yes. The scale compensates the collecting effort itself, whether done by you or an agency. Calculate per the scale and claim it with the principal; hiring an agency is a choice, not a condition.
Does the fourteen-day letter also apply to business clients?
No, that mandatory free reminder applies to consumers only. With businesses you may announce costs and interest right after the due date. A courteous reminder first remains wise for the relationship, but is not legally required.
Can I still claim interest and costs afterwards?
Yes, the claim arises by law and only lapses after five years. In practice including them in your demands is stronger; claiming afterwards from a client who has since paid is rarely worth it commercially.
My large client uses 60 days as standard. Now what?
If that client is a large company and you an SME or freelancer, the clause is void and 30 days applies by law. Point it out businesslike, preferably at signing. If they structurally pay late, commercial interest simply accrues, even if you raise it later.
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.
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