Unpaid bills, we all know this stress! Whether it's an oversight, a setback or a customer who is late in paying, managing an unpaid bill can become a real headache. Don't worry, this guide is there to support you every step of the way. With practical tips, legal advice, and simple solutions, you can get your money back without too much hassle and while maintaining a good relationship with your customers. Let's go, let's go, let's tackle this bill!
What to do in case of non-payment?
Here is a summary of your rights in case of non-payment, with the associated deadlines:
- Amicable reminders : You can send reminders starting the day following the due date of the unpaid bill. In general, you start with a friendly reminder and then you can send several reminders one to two weeks apart.
- Formal notice : If the reminders have not been successful, you can send a Formal notice After a months late (this is the current deadline, but it may be shorter depending on your contract). This letter should be sent by registered mail with acknowledgement of receipt. The payment term granted in the formal notice is generally 8 to 15 days.
- Late penalties : You can apply late payment penalties from the first day of delay if they are mentioned in the contract or the conditions of sale. The legal interest rate applicable is generally that of European Central Bank increased by 10 percentage points, but a specific rate may be agreed between the parties. Penalties must be specified on the invoice.
- Injunction to pay : If the invoice remains unpaid after the formal notice and the claim is not contested, you can request a writ in court. This procedure is swift, but the court decision may take 1 to 2 months after the request, depending on the complexity of the case and the workload of the court.
- Seizure of assets : If the order for payment is favorable and the debtor still does not pay the debt, you can ask for a keying (on salary, bank account, etc.) in court or by a bailiff. This may take a few more weeks after the judgment.
- Recourse to a professional : If you decide to use a debt collection company or a bailiff, processing time will depend on the professional chosen. Collection costs can be added to the debt and vary depending on the company or bailiff.
Important : Always respect the legal deadlines for each stage, in order to maximize your chances of recovery while maintaining your rights and staying within a legal framework.
Complete guide to managing an unpaid bill
1. Check the bill details
Before acting, make sure that the invoice is correct and that the terms of payment have been met. Verify:
- Exact amount billed.
- Due dates.
- The agreed terms of payment (terms, deadlines, etc.).
- The services or products delivered or performed.
tip : If the invoice is linked to a contract, read it again to make sure that the terms of payment are well defined.
2. Give an amicable first reminder
Sometimes the delay can be due to a simple oversight or an administrative problem. Send a first courteous and friendly reminder, a few days after the due date, specifying the invoice concerned and recalling the terms of payment.
Sample message:
Hi [Customer name],
We remind you that invoice no. [number] in the amount of [amount] issued on [date] remains unpaid to date, with a due date passed on [date]. We would be grateful if you could proceed with its payment as soon as possible.
We remain at your disposal for any questions and thank you for your responsiveness.
3. Offer easy payment options
To make it easier to pay the bill, you can offer payment options, such as Bill Up, an application that allows your customers to pay quickly via traditional banking applications. You can also suggest paying in installments if the amount is large.
This can encourage the customer to pay without too much pressure.
4. Send a formal notice (if required)
If, after several friendly reminders, the bill remains unpaid, it is time to send a formal notice of default. This document tells the customer that they have a specific period of time to pay the bill before legal action is taken.
The formal notice must be sent by registered mail with acknowledgement of receipt. Clearly state the amount due, the due date, and the new payment deadline.
Example of a formal notice:
We hereby give you notice to pay invoice no. [number] in the amount of [amount] within [x days], i.e. before [date]. If payment is not made within this period, we will be forced to take legal action, which may result in additional costs and legal consequences.
We kindly ask you to take the necessary measures as soon as possible.
5. Start a debt collection procedure
If, despite the formal notice, the bill remains unpaid, you can consider recovery actions:
- Injunction to pay : This is a quick legal procedure where a court orders the debtor to pay the amount due. This remedy is effective if the claim is uncontested.
- Payroll or bank account entry : If a favorable judgment is rendered and the debtor still does not pay, you can request a seizure of his income or bank assets.
- Use of a debt collection professional : If you prefer to delegate this task, you can use a company that specializes in debt collection.
6. Keep a professional and calm tone
Throughout the process, it's essential to remain professional, even if the situation gets frustrating. Respect and courtesy promote a faster resolution and maintain your business relationships. If you have discussions with the customer, listen to them and offer reasonable solutions to reach an agreement.
7. Keep your documents and communications up to date
Keep copies of all your communications, from the original bill to emails, reminders, demands, and any documents related to the situation. These documents will be important if the situation evolves into legal action.
tip : Use receivables management software to easily track payments, reminders, and actions taken.
8. Plan a system to avoid future arrears
Once the situation is resolved, take steps to limit the risk of unpaid bills in the future:
- Request deposits : Requesting a deposit at the beginning of the service or delivery secures part of the payment.
- Clear payment terms : Establish strict payment terms and make sure your customers understand them.
- Automatic reminders : Set up an automatic reminder system to intervene quickly in case of late payment.
5 tips to reduce the risk of non-payment
- Offer quick payment via an application like Bill Up : By offering your customers the possibility to pay quickly and easily via an application like Bill Up, you're simplifying the settlement process. The application allows you to enter the beneficiary in a few seconds and make an immediate payment or schedule a payment, all using traditional banking applications. This reduces the chance of being late because customers can pay directly from their phone or computer.
- Establishing clear payment terms from the start : As soon as the contract is signed or the order is accepted, be transparent about your payment terms (deadline, method of payment, penalties in case of delay). This prevents misunderstandings and allows the customer to know exactly what to expect. If possible, ask for a deposit before the service or delivery to secure part of the payment.
- Use automatic reminders and alerts before the due date : Program automatic reminders via billing management tools before the due date of your invoices. A simple and courteous message a few days before payment can encourage the customer not to forget the payment, without the need for manual intervention.
- Offer early payment discounts : To encourage your customers to pay their bills sooner, you can offer them a discount if the payment is made by a certain date. This is an incentive to pay quickly while maintaining a positive relationship with your customers.
- Focus on clear contracts and regular reminders : A well-written contract, specifying the terms of payment and the consequences in case of delay, can protect you. At the same time, set up a regular follow-up process as soon as an invoice is due, starting with a friendly reminder and progressing to firmer actions if necessary. The sooner you act, the more likely it is that you will get your funds back before the situation gets complicated.
And if I don't pay my bill, what is the risk?
If you don't pay your bill on time, you're exposing yourself to several legal and financial risks. First, late penalties may be applied, increasing the amount you owe. If the payment is still not made, you may receive a formal notice, a formal warning giving you a final deadline to pay the amount. In the event of non-regulation, the creditor may initiate legal proceedings, such as an order for payment or a seizure of your assets, including your wages or bank accounts. In addition, a default can affect your financial reputation, making it more difficult to get credits in the future. You could also be registered with bad payers, which will have a negative impact on your business relationships and credibility. In short, not paying a bill on time can lead to additional costs, seizures, and even legal actions.
