Your customer is not paying, disputes the invoice or keeps postponing a payment arrangement. A debt collection lawyer can assess how to substantiate your business claim and which next step makes sense. Arslan Advocaten helps businesses from Den Bosch and ‘s-Hertogenbosch from our offices in Tilburg and Eindhoven.
Debt collection is not only about being proved right. Evidence, defences, recoverability and costs also determine whether a demand, negotiation or proceedings is a sensible choice. On this page you can read how to prepare a file and which decisions deserve attention before you incur extra costs.
Have your business claim assessed. State the outstanding amount, the due date and the reason your customer gives for not paying.
Which debt collection issue is your business facing?
| Situation | First point of attention | Possible next step |
|---|---|---|
| No response to an invoice that is due | Agreement, performance, payment arrangements and the correct debtor. | A substantiated letter of demand and an assessment of recoverability. |
| Customer complains about quality or delivery | The complaint, proof of performance and remedy offered. | Respond on the merits and define the disputed points. |
| Customer acknowledges the debt but asks for more time | Capacity to pay and earlier promises. | A verifiable arrangement with clear instalments. |
| Risk that recoverable assets disappear | Concrete indications, urgency and proportionality. | Examine whether an interim measure is appropriate. |
An invoice is the start of your evidence
An invoice shows what amount you are charging, but does not in itself always prove that the other party ordered the service or that it was performed correctly. So collect the quotation, acceptance, order confirmation and relevant terms and conditions. Also think of messages in which the customer agrees to additional work or a changed price.
For performance, delivery notes, timesheets, reports, completion documents and correspondence can be important. Keep original files available and make clear which assignment they belong to. With several projects, an overview per invoice prevents payments or complaints from being linked to the wrong assignment.
Who is legally your contracting party?
A trade name, contact person and legal entity are not always the same. Check who gave the assignment, in whose name the agreement is and on whose behalf messages were sent. A claim against the wrong party can lead to unnecessary costs, even when there is little dispute about the work performed.
With a group of companies, a sole proprietorship or a collaboration between several parties, this deserves extra attention. The fact that one person always maintained contact does not automatically make that person personally liable. Directors’ liability also requires a separate legal basis.
Due date, notice of default and letter of demand
Before further steps are taken, we assess when payment was due and whether any conditions have been met. Enforceability and default are different concepts. A notice of default may be needed, but sometimes default follows from another ground. Which route applies depends on the agreements, the statutory rules and the specific facts.
A usable letter of demand names the agreement, the outstanding invoices, payments already received and what you now require. The letter must also match the costs and measures you may wish to claim. So do not automatically use a consumer letter for a business debtor, or vice versa.
In our step-by-step plan for business debt collection you will find further explanation about preparation and follow-up. Keep records of sending and receipt and log substantive responses. A telephone conversation can be useful, but then record specific arrangements clearly.
The customer disputes the invoice: respond on the merits
A dispute does not automatically make a claim unfounded. But it must be clear what the dispute is about: the assignment, the amount, the performance, damage or set-off. Simply sending the same reminder again may be insufficient when the other party has substantiated a specific complaint.
Complaint about defects or unfinished work
Collect what was agreed about quality, completion and repair. When was the complaint made, what was investigated and which solution was offered? Distinguish between parts that are and are not disputed. If suspension or set-off is invoked, it must be assessed whether there are grounds for it and how far that reliance can go.
Read the explanation about a disputed invoice and a customer who does not pay because of defects. These questions concern the content of the agreement, in addition to collecting the amount.
Additional work and oral agreements
Additional work is often harder to prove when it was only discussed orally. Look for confirmations in emails, messages, adjusted schedules or reports. Note who agreed what and who was present. A statement of your own drawn up afterwards can help to structure the account, but it does not replace all other substantiation.
Fictitious example: after an assignment, a service provider sends an extra invoice for extensions. The customer acknowledges the main assignment but claims that the extensions were included in the original price. Then the dispute is not resolved by the extra invoice alone; it is precisely the agreements made on price and scope that must be examined.
A payment arrangement that offers something to hold on to
An arrangement can be attractive when the customer acknowledges the debt and payment in instalments is more realistic than going straight to court. In any event, record which amount is acknowledged, which payments will follow on which dates and how interest and costs will be dealt with. Also discuss what happens if an instalment is missed.
Check whether the arrangement alters earlier rights or agreements. Words such as “final settlement” or “in full and final discharge” can go further than mere deferral. If the business relationship continues, it is also important how new assignments will be paid for and whether the existing arrears can increase further.
A repeatedly renewed payment proposal without concrete implementation deserves a fresh assessment. Monitor the instalments and do not automatically send new reminders for months on end when there are indications that the financial position is deteriorating.
When do proceedings make economic sense?
Before proceedings, we assess the legal basis, the expected defence, evidence and possible proceeds. A judgment is no guarantee that the debtor can actually pay. That is why recoverability is part of the assessment, in addition to the chance that your claim will be awarded.
- Interest at stake: what is actually outstanding after payments, credit notes and any counterclaims?
- Evidence: which elements are established and for which is additional evidence needed?
- Defence: which substantive objections can the other party raise?
- Costs: what do preparation, proceedings and any enforcement cost?
- Recovery: are there concrete indications that payment is possible after a judgment?
Which court has jurisdiction and whether a lawyer is mandatory depends on the nature and size of the claim. Your place of business in Den Bosch does not in itself determine that. The overview by the Dutch judiciary (Rechtspraak) on mandatory legal representation provides general explanation.
Attachment or a bankruptcy petition
Prejudgment attachment can, under certain conditions, serve to secure recovery. This requires, among other things, an assessment of the claim, urgency, proportionality and risks. It is not a standard step for every overdue invoice. Wrongful attachment can itself lead to liability risks.
A bankruptcy petition also has its own conditions. Do not use this route as a mere threat without an assessment of the file. If the debtor is already bankrupt, it must instead be examined what position you have as a creditor. See the explanation of debt collection in bankruptcy.
What does a debt collection lawyer cost and what is recoverable?
We discuss the proposed work and cost arrangements in advance. Distinguish between your lawyer’s fees, any extrajudicial collection costs, interest, court fees and bailiff’s costs. Not every amount you spend yourself can be recovered in full from the debtor.
Nor does an order to pay the costs of proceedings usually simply reimburse your full actual lawyer’s fees. That is why we look at the costs in relation to the interest at stake and the possible proceeds. With a small claim or one that is difficult to recover, a limited advice or negotiation step may be more appropriate than extensive proceedings.
Debt collection assistance for Den Bosch from Tilburg and Eindhoven
Businesses from Den Bosch can contact us through our offices in Tilburg and Eindhoven. When you get in touch, indicate whether it concerns one invoice, several assignments or a broader contractual dispute. You will find up-to-date contact and address details on the office pages.
The initial assessment revolves around the file and your goal: quick payment, preserving a customer relationship or a decision on a disputed claim. You can find more about our services under debt collection for creditors and company law for self-employed professionals and SMEs.
Frequently asked questions about business debt collection in Den Bosch
Do I have to engage a debt collection agency first?
You can have your claim assessed directly by a lawyer. Which assistance is appropriate depends on the size, any dispute and the steps you want to take. Do mention whether an agency or other adviser is already involved and which arrangements apply with them.
Can a lawyer also help if the customer disputes the invoice?
Yes. We then assess both the payment and the underlying contractual dispute. Send the complaint and your response along with it. A substantiated response on the merits is then more important than the number of reminders sent.
Can I stop further work straight away?
That must first be assessed on the basis of your agreement and the circumstances. Stopping on your own initiative can have consequences if suspension is not justified. See also suspending work or payment in business relationships.
The customer is not based in Den Bosch. Is that a problem?
No, state where the debtor is established. The applicable rules, the competent court and the enforcement of a judgment must fit the case. With foreign debtors, choice of law, language and international enforcement require extra attention.
Can you guarantee payment?
No assessment or proceedings can guarantee that a debtor has sufficient assets for recovery. We discuss evidence, legal prospects and costs, and take known information about the financial situation into account in our advice.
What should I send with my first request?
The agreement, invoices, payment overview, reminders sent and the customer’s latest response. Also mention promises, earlier arrangements and any indications of financial problems. A brief chronology helps to see the core quickly.
Discuss your unpaid invoice — business debt collection for Den Bosch via Tilburg and Eindhoven.