Invoice recovery

Invoice recovery is the action a creditor takes when an invoice is not paid on time. The goal is to recover all or part of the outstanding amount - either through your own efforts(self-collection) or via an external partner such as a debt collection company or lawyer (third-party collection). The process must always follow good debt collection practices and applicable legislation.

When does invoice collection start?

Collection typically starts after the agreed payment deadline. Many start with a reminder process and then proceed to debt collection if payment is not received. You are generally left to handle the process yourself, but many choose a professional partner to ensure correct and efficient processing.

Reminders, fees and deadlines

If the customer does not pay, you can send a written reminder. If you add a fee to the reminder to a consumer, you must allow at least 10 days for payment per reminder and you can charge a maximum of DKK 100 per reminder and a maximum of three fee-based reminders per invoice. The first reminder may be sent no earlier than the day after the payment deadline. For business customers, terms on fees can be agreed in the terms of business; if nothing is agreed, many choose to follow the consumer rules as a guideline. For business customers, you can also charge a compensation fee of DKK 310 once per claim.

Collection notice (demand letter)

Before you can impose collection costs on the debtor, you must send a debt collection notice with a payment deadline of at least 10 days. The notice must clearly state the claim, the deadline and that further action(debt collection) will be taken if payment is not received. Many people let the final reminder act as a debt collection notice by writing, for example: "If the invoice is not paid within 10 days from the date, the case will be referred to debt collection, which will result in additional costs."

Important: If the claim is disputed, you cannot continue as a debt collector. Instead, the case must be treated as a regular court case.

Interest rates

As a general rule, you can charge interest on late payments. In relation to consumers, the ceiling is the Nationalbank's lending rate + 8 percentage points. The interest rate can be agreed between traders; if nothing is agreed, the same starting point applies as in consumer relationships.

Self-collection or third-party collection?

With self-collection, you manage reminders, interest, debt collection notices and the dialog with the customer - often with the opportunity to agree a realistic repayment plan and maintain the relationship. With third-party debt collection, a debt collection company or lawyer handles the process, including demand letters, collection letters and - if necessary - the next step in the legal system. The cost of out-of-court debt collection depends on the amount of the principal and whether you are pursuing self- or third-party debt collection.

The bailiff court and payment orders

If payment remains unpaid, in many cases you can file a demand for payment with the enforcement court for undisputed claims up to DKK 100,000 (excluding interest and costs). If objections are raised, the payment claim process stops and you will need to consider a civil lawsuit. A judgment or court settlement makes it possible to appear in the bailiff court for attachment.

Documentation and proof

As a creditor, you have the burden of proof that invoices and reminders have reached the debtor. If in doubt, send important letters by registered mail or with a documented delivery track. Make sure the invoice meets basic requirements(invoice date, sequential number, seller and buyer details, delivery date, services/goods, VAT basis/VAT amount, price, due date, etc.), as well as relevant industry requirements.

Statute of limitations

Ordinary claims are generally time-barred after 3 years. If you get a judgment (or a court settlement), the statute of limitations then runs for 10 years. That's why it's important to act quickly when payment is not received.

Get help with invoice recovery

At Collectia, we help companies get money back - professionally and respectfully. Our platform combines experience with modern technology to handle reminders, demands and installment agreements efficiently and in accordance with the law.

If you want sparring on a specific claim or your entire reminder and debt collection process, we are happy to talk to you without obligation.