Payment Terms & Collection Costs: Get Paid Faster
Not legal advice — consult a legal or tax professional for your specific situation.
You've completed the job, sent the invoice, and then: silence. No payment, no response. For freelancers and SME owners, an overdue invoice is more than an annoyance; it hits your cashflow directly. Dutch law provides tools to claim your money. Below you'll find which payment terms apply, when you can charge collection costs, and how to keep the whole process under control.
Legal Payment Terms: What Does the Law Say?
Under Dutch law, the default statutory payment term for consumers (B2C) is 30 days from the invoice date. If you want a shorter term, for example 8 or 14 days, state this in your general terms and conditions.
For business transactions (B2B), many entrepreneurs work with a 14-day term from the invoice date. Once that deadline passes, you are entitled to charge statutory commercial interest and collection costs under the Late Payment in Commercial Transactions Act.
Example: You're a freelance web developer delivering a project to a marketing agency. You send the invoice on Monday with a 14-day payment term. On day 15 you still haven't received anything. From that moment, the law provides that you may take action.
| Situation | Default Term | Shorter Term Possible? |
|---|---|---|
| B2C (consumer) | 30 days from invoice date | Yes, via general terms |
| B2B (business) | 14 days from invoice date | Yes, by mutual agreement |
| Government as client | 30 days (max. 60 days) | No, legally capped |
Charging Collection Costs: How It Works
Before you can charge collection costs, you must first send a written demand notice. This gives the debtor a final payment opportunity of at least 14 days, starting the day after receipt of the letter. In that notice you must explicitly state the amount of collection costs that will become due if payment is not made. This is anchored in Article 6:96(6) of the Dutch Civil Code.
The statutory collection costs are calculated using a degressive percentage of the outstanding amount:
- Minimum amount: €40
- Maximum amount: €6,775
The higher the outstanding amount, the lower the applicable percentage. More information is available at ondernemersplein.overheid.nl.
Make sure your payment terms, interest agreements, and collection costs are all recorded in your general terms and conditions. Without that documentation, your legal position is weaker.
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Practical Debtor Management: Prevent It Getting This Far
The most efficient collection procedure is the one you never need. A few smart habits will help your clients pay sooner:
1. Invoice immediately after delivery The longer you wait to invoice, the longer it takes for the money to reach your account. Link your time tracking directly to your invoicing system so you can raise an invoice the moment a project or sprint closes. Read how to log hours and link them to projects.
2. Send an automatic reminder A friendly payment reminder on day 7 can already recover a lot. Set it up in advance so you don't have to think about it again.
3. Make paying easy Always include your bank account number, invoice number, and the exact amount due. The less the client has to figure out, the sooner they pay.
4. Put agreements in writing Always confirm verbal agreements by email. That way you have a clear paper trail in the event of a dispute. Combine this with solid CRM and quote administration so all client communication is in one place.
5. Check your time records When invoicing on an hourly basis, make sure your leave and hour registration is accurate so you never over- or under-invoice.
Step-by-Step: From Outstanding Invoice to Payment
If an invoice still doesn't arrive on time, follow this plan:
- Days 1-14: Payment term is running.
- Day 15: Send a friendly reminder by email.
- Days 21-25: No response? Call the client.
- Days 28-30: Send the formal demand notice with the 14-day deadline and announcement of collection costs.
- Day 45+: Engage a debt collection agency or start legal proceedings.
Document every step (date, channel, content) and you'll have a file you can use immediately if legal action becomes necessary.
Conclusion
Payment terms and collection costs are not a legal grey area; the legislation is clear. Consumers get 30 days, business clients typically 14 days. You may only charge collection costs after a correct demand notice, with a minimum of €40. Your strongest weapon remains prevention: invoice promptly, send timely reminders, and record everything in your general terms and conditions. An integrated platform combining time tracking, project management, and invoicing saves you time and reduces the risk of payment delays.
Frequently Asked Questions
Can I use a payment term shorter than 30 days for consumers? Yes. You can include a shorter term, such as 8 or 14 days, in your general terms and conditions. Just make sure the client received those terms before or at the time the contract was concluded; otherwise they do not apply.
Does a demand notice have to be sent by post, or can I use email? The law requires a 'written' notice. In practice, courts increasingly treat email as equivalent, provided you can demonstrate it was received. To be safe, send the notice both by email and by recorded post.
What if my client disputes the collection costs? As long as you followed the correct procedure (written demand, at least 14-day payment window, amount explicitly stated) the collection costs are legally due under the Decree on Extrajudicial Collection Costs. Keep all correspondence as evidence.
Can I also charge statutory interest? Yes. Once the payment term has expired, the debtor is automatically in default and you are entitled to charge statutory (commercial) interest. For B2B transactions, the commercial rate applies, which is generally higher than the ordinary consumer rate.
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