Outstanding Receivables Cost Money – and Nerves

Every unpaid invoice is a liquidity risk. Whether €100 or €10,000, outstanding receivables can quickly add up to a serious cash flow issue. This can be particularly critical for small and medium-sized enterprises (SMEs). Studies show: Around 20% of all corporate insolvencies in Germany are caused by missing customer payments.

Companies that collect outstanding receivables systematically not only secure their liquidity, but also optimize internal processes and improve planning reliability. In this article, you will learn how to track outstanding receivables efficiently, which legal aspects you need to consider—and how to use KLEVERBILL to automate your entire dunning and collections process.

1. What are outstanding receivables?

Outstanding receivables (OP) are all customer invoices that have not yet been paid. They arise when a company has provided a service and issued an invoice, but payment has not yet been made—even though the due date has already passed.

Outstanding receivables management includes:

• Overview of all outstanding claims

• Monitoring payment deadlines

• Automated dunning

• Initiation of legal action in case of late payment

Typical causes of outstanding receivables:

• Forgotten or incorrect invoices

• Missing dunning routines

• Unclear payment terms

• Poor customer creditworthiness

2. Why consistent receivables management is so important

According to a survey by Creditreform, more than 60% of surveyed SMEs state that unpaid invoices make financial planning more difficult. Active outstanding receivables management can play a decisive role in minimizing risks and making income more predictable.

Your benefits from systematically collecting outstanding receivables:

• Improved liquidity planning

• Faster incoming payments

• Reduced workload through automation

• Stronger customer relationships through transparent processes

• Early identification of high-risk customers

3. How collecting outstanding receivables works – step by step

Professional receivables management is divided into several phases:

1. Invoicing

• Complete, accurate, and with a clear payment deadline

• Digital where possible and GoBD-compliant

2. Monitor incoming payments

• Match incoming payments with open invoices

• Automatic OP list with due-date overview

3. Payment reminder (friendly)

• Shortly after due date, via email or letter

• Friendly, solution-oriented tone

4. 1st and 2nd dunning notice

• Increase urgency

• If applicable, include reminder fees or default interest

5. Final notice / Collections

• Announce legal action or debt collection proceedings

• Optional handover to a debt collection service provider or attorney

4. Legal fundamentals for collecting outstanding claims

To ensure legally compliant collection, the following points must be observed:

• Default occurs automatically when a payment deadline has expired—or after 30 days if no date is specified (§ 286 German Civil Code)

• Dunning notice is not mandatory, but advisable to secure evidence

• Default interest may be charged (e.g., 9% above the base rate for B2B transactions)

• Reminder fees must be reasonable (generally €2.50 to €5.00)

Important: All communication should be documented and traceable —especially if the case may later require legal enforcement.

5. Automatically collect outstanding receivables with KLEVERBILL

KLEVERBILL automates the entire process from invoicing to final dunning notice—so no claim slips through:

✔ Automatic monitoring of all outstanding receivables

✔ Intelligent dunning logic with freely configurable deadlines & text modules

✔ Multilingual sending of dunning notices (DE/EN/FR)

✔ Transfer to collections or attorney with just one click

✔ Legally compliant documentation of all activities

✔ Integrated interfaces for accounting and payment reconciliation

Especially practical: At any time, you can see which customer has which invoice outstanding—including due date, dunning status, and contact history.

6. Collect outstanding receivables—structured and digital

Many companies hesitate to consistently collect outstanding claims—out of concern about upsetting customers. However, a professional and transparent approach actually strengthens trust. With KLEVERBILL, you automate your dunning processes, maintain full visibility of all outstanding receivables, and ensure steady cash flow—without putting pressure on your team.

🎯 Our recommendation: Don’t leave any invoice unattended for too long. Collect outstanding receivables with a system— digital, legally compliant, and efficient with KLEVERBILL.