Invoicing10 July 20264 min read

Payment terms and reminders: what is allowed and what works

Sending an invoice is one thing, getting paid on time is another. Many entrepreneurs are unsure exactly what payment term applies by law, or how much interest and costs they may charge for late payment. This article sets out the rules and walks through a proper, step-by-step reminder routine.

A hand circles a date on a desk calendar with an orange marker, beside an invoice and a phone showing a notification.

What payment term applies between businesses?

For business-to-business (b2b) transactions in the Netherlands, a statutory standard term of 30 days applies, unless you agree otherwise. This term generally starts from the invoice date or from the moment the client receives the invoice.

You may agree a longer term with larger businesses, up to a maximum of 60 days, provided this is not unreasonably disadvantageous to you as the supplier. When the client is a government body, a fixed, shorter term of 30 days usually applies.

Always record the agreed payment term clearly, both in your quote or contract and on the invoice itself. Without a clear agreement, the statutory term of 30 days automatically applies.

How much interest and collection costs may you charge?

For late payment, you may charge statutory commercial interest. This interest rate is set periodically by the government and is usually a number of percentage points above the base rate of the European Central Bank. Check the current rate with the Belastingdienst or the Kamer van Koophandel (KvK, the Dutch Chamber of Commerce).

In addition to interest, you may also charge collection costs for a late payment. There is a statutory scale for the amount of these costs, known as the WIK scale (from the Wet Incassokosten, the Collection Costs Act), which applies a percentage of the outstanding amount with a minimum and maximum amount.

For smaller amounts, a fixed minimum amount for collection costs often applies, even if the calculated percentage would work out lower. Only mention these costs once the payment term has actually expired, not before.

How do you build a proper reminder routine in three steps?

Step one is a friendly payment reminder, usually a few days to a week after the payment term has passed. Assume a misunderstanding or forgetfulness rather than bad intent, and keep the tone businesslike but approachable.

Step two is a more formal notice, roughly two to three weeks after the first reminder, in which you state a concrete new final payment date and explain what consequences (interest, collection costs) will follow if payment is not made.

Step three is the final notice or formal notice of default, in which you make clear that you will engage a collection agency or consider legal steps if payment is still not made. This step is also needed to formally be able to charge interest and collection costs.

How do you prevent it from getting this far?

An invoice that is clear and complete from the start, with an unambiguous payment term and payment details, already prevents a share of late payments. Unclear invoices lead to delay more often than actual unwillingness to pay.

For new or larger clients, consider asking for a deposit, especially for one-off, large assignments. This reduces your risk if the final payment ends up delayed anyway.

Automate the sending of reminders so you never forget to follow up, but keep the option to manually postpone a reminder for a client with whom you have just agreed a payment plan. TelMaar automatically tracks due dates and sends reminders on a schedule you set, so you do not have to keep this in your head.

What do you do if a client keeps refusing to pay?

After a formal notice of default that produces no result, it is common to engage a collection agency or, for larger amounts, start legal proceedings. Weigh the cost of collection against the outstanding amount.

Keep all correspondence carefully: the original invoice, the reminders, the formal notices, and any responses from the client. This file becomes important if the matter escalates further.

Also consider that a good relationship sometimes matters more than a small amount. If in doubt, a personal conversation, rather than written reminders alone, can be surprisingly effective in getting a payment released after all.

Frequently asked questions

What is the standard payment term between businesses in the Netherlands?

The statutory standard term is 30 days, unless the parties agree a different term together, with a statutory maximum of 60 days for larger businesses.

Can I charge collection costs as soon as the payment term has expired?

No, you may only charge collection costs after you have formally sent the client a notice and given a reasonable additional payment term. Check the current scale and amounts with the Belastingdienst or the Kamer van Koophandel.

How many reminders do I have to send at minimum before engaging a collection agency?

There is no fixed statutory number, but the usual pattern is a friendly reminder, a formal notice, and a final notice of default before escalating further.

This article is general information, not tax or legal advice. When in doubt, consult an adviser; rules can change.