Not paid for work you have delivered — it is one of the most frustrating situations for entrepreneurs. You have made agreements, correctly performed your work or delivered goods, but the payment fails to arrive. When a client or buyer refuses to pay, this can have major financial consequences.

In this article, you will read about your rights if you are not paid for delivered work, what steps you can take, and when legal action makes sense.

When is there a case of non-payment for delivered work?

A case of non-payment for delivered work arises when:

• you have performed work or delivered goods;
• this happened as agreed;
• the invoice has been sent;
• payment is not forthcoming without a valid reason.

This occurs with both business customers and private clients, but non-payment can hit especially hard in business relationships.

Common reasons why customers do not pay

In practice, we see that customers or buyers refuse to pay for a variety of reasons:

• they claim that the work was not carried out properly;
• they are dissatisfied with the quality;
• they have liquidity problems;
• they try to delay payment;
• they simply stop responding.

Not every reason justifies not paying an invoice.

What does the contract or agreement say?

The first step when not being paid for delivered work is to review the agreements made:

• quotation or order confirmation;
• agreement;
• general terms and conditions;
• agreements about payment terms.

Oral agreements can also be legally binding, but evidence is then especially important.

Is the buyer entitled to suspend payment?

A customer may only suspend payment if there is a real and demonstrable problem with the delivered work.

However, many entrepreneurs face unfounded complaints that are used as an excuse not to pay. In that case, suspension is not permitted.

Unpaid after delivery: what can you do immediately?

1. Send a clear payment reminder

If payment remains outstanding, send a written reminder in which you clearly specify:

• what amount is outstanding;
• which work has been carried out;
• by what deadline payment must be made.

2. Send your customer a formal notice of default

If the customer does not respond or payment is still outstanding, a notice of default is often necessary. This gives the customer a final chance to pay.

3. Gather evidence

In a dispute about not paid for delivered work evidence is essential. Consider:

• emails and correspondence;
• orders and quotations;
• invoices;
• delivery documents;
• witness statements.

What if the customer continues to refuse to pay?

When payment remains outstanding despite reminders, legal action may be necessary. This may consist of:

• initiating a collection process;
• engaging a lawyer;
• initiating legal proceedings.

In many cases, a formal legal approach leads to payment without a procedure being necessary.

Not paid for delivered work with international customers

With international customers, payment may not be made after delivery are extra complex. Different legal systems, language barriers, and recovery options play a role.

Read more about our approach to international debt collection in the Netherlands.

Common mistakes with unpaid invoices

• waiting too long to take action;
• failing to document clear agreements;
• not sending a notice of default;
• letting emotions take over;
• giving up too quickly.

What can Arslan Advocaten do for you?

Arslan Advocaten assists entrepreneurs who are not paid for work delivered. We assess your legal position, hold the counterparty liable, and guide collection and legal proceedings.

Also read more about our expertise in business law, our experience with commercial debt collection and with commercial disputes.

Costs and litigation funding in case of non-payment

In disputes over not paid for delivered work we in principle work not on a no cure no pay basis. These cases require a careful legal approach.

However, that does not mean that you have to bear these costs yourself. In many collection and payment disputes is litigation funding possible.

We work with an independent litigation funder who – after a substantive assessment – may decide to pay all litigation costs, including:

• attorney’s fees;
• court fees;
• expert fees;
• costs on appeal.

If litigation funding is granted, you, as the client, ultimately do not have to pay anything. The litigation funder bears the full financial risk.

The litigation funder only gets paid if successful. For you, this means that you can recover your money without financial risk.

About the author

This article was written by Onur Arslan, attorney and founder of Arslan Advocaten. He specializes in commercial disputes, including debt collection and payment disputes.

Would you like to know what you can do if your customer refuses to pay?

👉 View the profile of Onur Arslan and get in touch directly.