You are using an outdated browser. There may be optical and technical problems.
OK, CLOSE
If customers don’t pay, it’s not only tedious: in the worst case scenario, there’s also the risk of liquidity bottlenecks or even bankruptcy. Here you’ll find everything you need to know about payment reminders and demands for payment, including a sample text and Word template. To help you get your well-earned money quickly.
If the gap in the company’s coffers gets bigger and bigger because there are too many outstanding receivables, then action must be taken. Companies in Switzerland typically proceed in three steps: after a friendly payment reminder, they issue demands for payment once or twice before initiating debt enforcement.
From a purely legal point of view, it’s not always necessary to send a payment reminder, but it always makes sense. We’ll show you how it works and what you need to bear in mind. For good customer relationships and maximum protection against liquidity bottlenecks.
It’s important to remember that there is no official regulation on dunning in Switzerland. Accordingly, the terms “payment reminder” and “demand for payment” are not clearly defined either and are used synonymously. In practice, the difference is usually only in the tone of voice: with every additional payment reminder or demand for payment, the wording becomes more direct and urgent.
With our sample text and a handy Word template, you can quickly and easily create your own payment reminder and hopefully receive your money soon.
The payment deadline stated on the invoice has expired. What can I do?
If possible, wait another five to seven days to give your customer a little more time. If you already have a particularly good customer relationship, you can also ask informally via email or phone whether the invoice is already being processed.
It depends on a number of factors whether you want to wait a bit or whether you want to send a payment reminder directly as a gesture of goodwill:
Our tip: think about your liquidity when you issue your invoices.
For example, choose a shorter payment period. Although 30 days are often considered the standard, it is not mandatory. Smaller companies and the self-employed in particular like to work with due dates of 10 to 14 days.
In the event of a major vacation or the holiday season, it is particularly advisable to issue the invoice early so that you have enough time to send a payment reminder.
Please note: be sure to include a specific due date on your invoices, e.g. “Payable by April 30, 2025.” A statement such as “Payable within 14 days” is not sufficient for customers to be in arrears after the deadline has expired. However, this is a prerequisite for initiating debt enforcement in the worst case scenario.
If you don’t receive your money within the specified deadline or a few days later, send your customer a more formal payment reminder. Again, enter the specific date by which the invoice must be paid.
This way, you can be sure that your customer will be in arrears if you didn’t already give a specific date on the original invoice. In addition, a specific due date is a clearer call to action, increasing the likelihood that the invoice will be settled quickly.
You can only charge a reminder fee if you have explicitly stated this in your General Terms and Conditions (GTC). A vague statement is not enough, so the exact amount of the fees must be listed, for example: “We will charge CHF 10 for a demand for payment letter.”
On the other hand, you may charge default interest of 5% p.a. for a payment reminder/demand for payment, even if this is not explicitly mentioned in the GTC.
How to calculate default interest: 5% of the invoice amount divided by 365 multiplied by the number of days in arrears.
Sample calculation:
The original invoice amount is CHF 500; the person in question has already been in arrears for 30 days.
500 x 0.05 = CHF 25
25 : 365 = CHF 0.068 per day
0.068 x 30 days = CHF 2.05
This is rounded down to CHF 2 in interest arrears, which you may add to the invoice amount.
But remember that the number of days in arrears are not calculated from the original due date, but from the date of the first payment reminder.
Has the outstanding invoice not been paid after the first friendly payment reminder? Then you should take the next steps. If you don’t have the time and/or wish to handle it yourself, you can also pass on this tedious task, such as with the debt collection legal protection supplementary cover of AXA-ARAG's legal protection insurance for companies.
If the deadline for the first payment reminder also passes, it is advisable to send another payment reminder in which the tone is sharper.
You are free to decide whether you would like to send further payment reminders before considering debt enforcement. For many Swiss companies, the standard is three payment reminders – also known as “demands for payment,” as mentioned earlier – before debt enforcement is considered. After all, you don’t want to spoil or even destroy your customer relationship unnecessarily by taking legal action too quickly.
Please note: for each payment reminder, state the specific (new) due date by which the payment must be made. In the last payment reminder, you should also threaten debt enforcement, such as:
“Please pay the outstanding amount immediately, but at the latest by [last possible due date]. Otherwise, we will be forced to initiate debt collection proceedings.”
If the customer still hasn’t paid after the last demand for payment, you can institute debt enforcement proceedings – or have them instituted by a third party – to recover the outstanding amount through legal action. To do so, you must have given the customer a prior notice of default, i.e. you must have stated a specific due date either on the original invoice or in a payment reminder that has since lapsed.
Debt enforcement is the official legal route for collecting outstanding debts – in other words, the last step you can take if your customer fails to pay. Unlike dunning, debt enforcement is a legally regulated process (German).
If the customer still hasn’t paid after the last demand for payment, you can institute debt enforcement proceedings – or have them instituted by a third party – to recover the outstanding amount through legal action. To do so, you must have given the customer a prior notice of default, i.e. you must have stated a specific due date either on the original invoice or in a payment reminder that has since lapsed.
Consider whether debt enforcement is worthwhile financially, i.e. in relation to the outstanding amount. This is because you have to pay the costs of the debt enforcement in advance and will only be reimbursed by the debtor if these costs can be successfully recovered.
If you conclude that it is not worth the effort and risk, forgo the amount and write off the outstanding receivable in your bookkeeping as a loss. Otherwise, the next step is to initiate debt enforcement proceedings.
In the event of legal disputes involving delinquent customers, legal protection insurance offers you support and security through the following services, including:
Payment reminders can be sent in different ways:
There are no legal requirements about which form of delivery you should choose.
Your payment reminder should include:
Subject: Payment reminder (Invoice no. [number])
[Dear Ms. / Dear Mr. [customer name]]
Thank you again for your order.
We have noticed that the corresponding invoice number [number] in the amount of [amount and currency] has not yet been paid.
We understand that in the hustle and bustle of everyday life, a bill can quickly be forgotten. We would therefore like to remind you of the outstanding payment and kindly ask you to settle the invoice by [new due date].
If you have already done so, please ignore this email/letter.
Many thanks in advance.
Yours sincerely
[Your name and, if applicable, signature/footer]
Simona Audia is a Content Manager at AXA and researches interesting content for you on the subjects of insurance and pensions.
