Reminder policy

A reminder policy is the company's internal guidelines for how unpaid invoices are handled - from the first reminder to a possible handover to debt collection. A clear policy ensures that all customers are treated equally, that legislation is complied with and that the company gets paid as quickly as possible.

Why is a reminder policy important?

Unpaid invoices can quickly become a burden on liquidity. With a fixed reminder policy, the company avoids random or inconsistent procedures. It sends a professional signal to customers when payment follow-up always follows a clear structure. At the same time, it strengthens the company's opportunities to collect the debt – both out of court and through debt collection, if necessary.

Legislation and regulations

As a creditor, you are in principle allowed to reminder a customer as often as you want. But if you choose to impose fees, there are clear rules in the Interest Act:

• You can send a maximum of 3 reminders with fees per claim.
• The fee may not exceed DKK 100 per reminder.
• There must be at least 10 days between each fee-based reminder.
• For business customers, you can also apply a compensation fee of 310 kr per claim.

Before a case can be sent to debt collection, the customer must receive a debt collection notice with a payment deadline of at least 10 days. The notice must contain clear information about the claim, the deadline and the consequences of non-payment.

Example of a reminder policy

A simple and consistent reminder policy might look like this:

• Day 3-5 after due date: Friendly payment reminder with no fee.
• Day 10-12: First reminder with a fee of DKK 100 and a deadline of 10 days.
• Day 20-22: Second reminder with a fee of DKK 100 and a debt collection notice.
• Day 30+: Non-payment leads to transfer to debt collection.

A company can choose to send up to three reminders, but experience shows that the longer it takes, the lower the likelihood of payment. A short and consistent process increases the chance of getting paid on time.

Tone and documentation

A reminder policy is not only about deadlines and fees, but also about communication. The first reminder should be friendly, as many cases are due to oversights. Later reminders can be more formal. It's important that all reminders are documented - typically via email or letter - so you can prove that they were sent correctly.

Consistency with accounts receivable management

The reminder policy is part of the company's overall accounts receivable management. When the accounts receivable register and bookkeeping are updated, it is easier to identify overdue invoices and ensure that reminders are sent out on time. This makes the policy a tool for both financial overview and better liquidity.

The role of Collectia

At Collectia, we help companies create and implement reminder policies in practice. With our reminder service, the entire process can be automated - from the first friendly reminder to the statutory debt collection notice. We make sure that all letters are legally compliant and that the process can be documented if the case ends up in debt collection or court.