Statute of Limitations – An Underestimated Risk

Recent years have posed major challenges for many companies. Supply chain disruptions, pandemic-related downtime, and economic uncertainty resulted in many invoices remaining unpaid. At the same time, creditors now face the statute of limitations on their receivables—and with it, the loss of enforceable claims.

With KLEVERBILL you always keep outstanding receivables and their deadlines in view, preventing even a single claim from being lost.

When Do Receivables Become Time-Barred?

As a general rule, Section 195 of the German Civil Code (BGB) provides a statute of limitations period of three years for contractual and statutory claims. This applies to both private individuals and businesses. Once this period expires, the claim can no longer be enforced in court. However, there are exceptions:

• Claims for defects in construction works: 5 years

• Claims for surrender arising from rights in rem: 30 years

• Enforceable titles from court proceedings or deeds: 30 years

How to Calculate the Limitation Period Correctly

The three-year limitation period always begins at the end of the calendar year in which the claim arose and the debtor was aware of the claim or should have been aware of it (Section 199 BGB).

Example: Service performed in March 2020 → Start of period: 31/12/2020 → Limitation: 31/12/2023.

How Can the Statute of Limitations Be Prevented?

With a few measures, you can defer or prevent the limitation of receivables:

✅ Partial payments: Each payment made by the debtor restarts the limitation period.

✅ Negotiations: Active negotiations extend the limitation period. Make sure this is confirmed in writing.

✅ Judicial dunning procedure: A dunning procedure initiated in good time suspends the limitation period. An enforcement title results in a new 30-year period.

✅ Filing a lawsuit: A lawsuit also stops the limitation period.

5 Practical Tips to Avoid Limitation Issues

💡 Issue invoices immediately and ensure clear payment deadlines.

💡 Send reminders early to identify delinquent debtors in time.

💡 Offer partial payments in the event of default.

💡 Assign receivables to a collection agency in due time.

💡 Use KLEVERBILL to automatically monitor deadlines and automate dunning processes.

Why KLEVERBILL?

With KLEVERBILL, you stay in control of deadlines, negotiations, and dunning processes:

• Automatic monitoring of all deadlines

• Timely reminders and escalation in case of default

• Transparent workflows and clear responsibilities

• Improved liquidity through fewer bad-debt losses

Avoid Limitation Issues with KLEVERBILL

Time-barred receivables weaken your balance sheet. With KLEVERBILL, you ensure that no claim is lost—while simultaneously protecting your customer relationships.