Outstanding Receivables and Effective Dunning with KLEVERBILL

Why outstanding receivables harm your business

Outstanding receivables put a strain on a company’s liquidity, lead to interest losses, and incur additional costs. Even worse, there is always the risk of a complete write-off. That’s why it is critical for any business to realise outstanding receivables as quickly and efficiently as possible. The key: an effective dunning process that also preserves customer relationships. With KLEVERBILL, you can automate your dunning workflow and secure your receivables across Europe.

The out-of-court dunning process

Before initiating legal measures, companies usually start with an out-of-court dunning process. According to German law (§ 271 BGB), payments are due immediately after the service is rendered, unless otherwise agreed. In B2B contracts, payment terms of up to 60 days are customary; longer terms are only allowed if explicitly agreed and reasonable.

When a debtor misses a payment, the creditor sends a reminder – an unambiguous request to pay the overdue amount. This reminder should reference the invoice number, date, and amount to avoid misunderstandings.

Recommended reminder sequence

First Reminder: Friendly Payment Reminder

A polite note reminding the debtor of the overdue invoice, often with a copy attached for convenience.

Second Reminder: Formal Reminder

If no payment is received within 10–14 days, a more formal reminder follows, setting a clear deadline and mentioning potential late fees or interest.

Third Reminder: Final Warning

As a last step before legal action, a final reminder can include a warning of court proceedings and additional costs if the payment is not made.

Legal dunning process and enforcement

If reminders are unsuccessful, the creditor can initiate a court dunning procedure or file a lawsuit to obtain a legally enforceable title. This title is necessary for enforcement actions, such as wage garnishment or property seizure.

Court dunning process:

• Faster and cheaper than a full lawsuit

• No examination of the claim’s validity by the court

• Results in a writ of execution, enabling enforcement

Advantages of KLEVERBILL in the dunning process

KLEVERBILL automates your entire dunning process – from the first reminder to obtaining a writ of execution. The system ensures:

• Timely reminders in line with legal requirements

• Customisable workflows that fit your business

• Professional and consistent communication with debtors

• Monitoring of all deadlines and status updates in real time

Avoid unnecessary costs and keep customers

Aggressive enforcement at the wrong time can create unnecessary costs and damage customer relationships. Many debtors regain liquidity over time and can settle their debts later. KLEVERBILL helps you build bridges, offering installment plans or deferred payments when appropriate – because where there’s a will, there’s a way.

Conclusion: Secure your receivables with KLEVERBILL

An effective, customer-focused dunning process is crucial for maintaining liquidity and avoiding losses. KLEVERBILL automates and optimises your receivables management, enabling you to act professionally and flexibly while keeping control of costs and relationships.

📞 Telefon: +49 (0) 711/22863-0

📧 E-Mail: info@kleverbill.de

🌐 Website: KLEVERBILL

Get in touch today and find out how KLEVERBILL can help you recover outstanding receivables efficiently and sustainably!