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Here's everything you need to know about sending reminders to your bad payers and debtors. For example, did you know that reminders are not a requirement to start a debt collection process?

What is a reminder?

A reminder is legally called a reminder letter. The purpose of a reminder is to remind you of one or more missing payments - typically for an unpaid invoice or other financial balance that has not been paid.

The reminder alerts the debtor or debtor that the creditor is missing payment, which can be beneficial if the non-payment is due to a simple oversight by the debtor/debtor.

The reminder can legally be sent via most platforms and media, but in practice it is usually sent by physical letter or email. The reminder can only be sent once the payment deadline has passed. We recommend that you use the medium you have communicated on - or sent the invoice on - which is typically email.

A reminder fee may be added to a reminder, but the reminder fee is an option you have as a creditor - not a requirement.

Contrary to popular belief, a reminder is not a legal requirement - for example, before debt collection or bailiffs. The only requirement is that a debt collection notice has been sent.

How do you create a reminder?

We often get the question: "What should a reminder contain?" - Fortunately, creating a reminder is relatively simple.

The reminder should include a clear explanation of what the debtor owes - and what they owe for. Often a reference to the original invoice will be a good idea.

En rykker kan formes, designes og udarbejdes, som du ønsker – formålet er dog altid at fungere som en påmindelse om, at skyldner har et tilgodehavende til din virksomhed i form af en ubetalt faktura.

The reminder may include a reminder fee. If you choose to add a reminder fee, it's important that your reminder contains a payment deadline of at least 10 days.

In everyday life, however, many people equate a reminder and a reminder fee, but legally speaking, this is not entirely correct. A reminder fee is a fee of DKK 100 that can be imposed on a reminder sent out.

There are many ways to create a reminder - we recommend that you use our free reminder template. By using the free reminder template, you ensure that all formalities surrounding the reminder are followed.

Free reminder template

We have prepared a reminder template for those who want to send out reminders themselves (we can also do it for you). By downloading our template, you can be sure that your reminders comply with all requirements and rules.

Download template

When can I send reminders for non-payment?

We often get the question: "When can you send a reminder?" - and the answer is simple; when the payment deadline has passed.

Remember that if the debtor pays the invoice on the due date, the payment may not be registered with you on the same day. It depends, for example, on whether the debtor has the same bank as the creditor.

If the debtor has paid on or before the payment due date, the invoice is legally paid on time, even if the creditor has not yet received the money.

We therefore always recommend that you send the reminder after a few days. This way you can be sure whether the payment has arrived or not. Some banks can take between 1-3 banking days (business days) before the amount is visible to the creditor. For foreign transactions, this period can be even longer.

Remember your option for a DKK 100 reminder fee

The Danish Act on Interest and Other Matters relating to Late Payment, commonly known as the Interest Act, allows you as a creditor, or the creditor's debt collection company/collection lawyer, to send up to three reminders with an additional 100 DKK each.

This is an option that the Interest Act gives you as a company - not a requirement. You also decide whether you want to send one, two or three reminders with a fee if the debtor does not pay.

While you can send friendly reminders to your debtors as many times as you like, the Interest Act sets out a number of regulations if you as a creditor want to add the DKK 100 reminder fee:

You can send a maximum of 3 reminders, which are subject to a penalty of 100 kroner.
You may not send one reminder for 300 kroner at once.
The €100 is a maximum, so in principle you can charge less.
The 100 kroner must be sent at least 10 days apart - otherwise the reminder fee is not valid.
The €100 is not subject to VAT.
The €100 in reminders is an option, not a requirement.

Should I send reminders before collection?

No, there is no requirement to send reminders before submitting your case to a debt collection agency or a debt collection lawyer.

Reminders are an opportunity for you as a business to collect your money and remind your debtors that you have a financial outstanding balance, typically in the form of an unpaid invoice.

Many people mistakenly believe that you need to send reminders prior to a debt collection case, but this is not true. Simply send a debt collection notice or let your debt collection company or lawyer do this for you.

Our recommendation for sending reminders

Our clear recommendation to you as a business owner, accountant or responsible for sending out reminders for your company is that you create a reminder policy/credit policy internally for how you reminder your customers who choose not to pay your outstanding debts.

There is no right or wrong practice when it comes to sending out reminders. However, our clear recommendation is that you are consistent and adhere to the policy you set in this area.

Example of a reminder policy

5 dage efter forfaldsdatoen: Udsendelse af betalingspåmindelse. Det kunne eksempelvis være i form af en “venlig reminder”, der melder debitor om jeres økonomiske mellemværende.
10 days after the due date: sending the first reminder, which is subject to a charge of 100 kroner.
20 days after the due date: sending a second reminder with a charge of 100 kroner.
30 days after the due date: sending a third reminder with a charge of 100 kroner.
If there is still no reaction from the debtor, a debt collection notice should be sent to the debtor.

The above is just an example. However, sending all 3 reminders 10 days apart can be hard on a company's cash flow. Fortunately, it is possible to shorten the process with just one or two reminders.

You and your company are in control of the policy. However, we recommend the following:

Never drop a claim no matter the size, debt collection can pay off.
Be consistent in your reminder policy, whatever you decide.
Be consistent with all your bad payers.
Post regularly and frequently so you know what you have outstanding
Introduce fixed routines for sending reminders, perhaps on fixed days
Anyone can forget to pay an invoice, so reminders are necessary

At Collectia, our products have a built-in reminder service

If you don't want to send reminders yourself, let us do it! Sending reminders is often always included in our products.

The first contact to your debtor from Collectia will often be a reminder, which is charged 100 kroner and a debt collection notice, which is sent by physical letter post.

If this request is not paid, the case will continue automatically without you having to take any further action. All you need to do is send us the unpaid invoices and we will send out reminders and debt collection notices - it's completely free to get started.