Tips
Designing Proper Dunning Management: How to Secure Your Liquidity (Without Scaring Off Customers)
A professional dunning system is not a sign of distrust, but of economic professionalism. The optimal 3-stage plan for your business.
An invoice is only successful when the money arrives in your account. But what to do when the payment deadline passes and the account remains empty? Many entrepreneurs hesitate out of fear of straining the customer relationship.
However, a professional dunning system is not a sign of distrust, but of economic professionalism. In this guide, we show you the optimal three-stage process - from a gentle reminder to the final demand.
The 3-Stage Plan for Your Dunning System
A structured approach helps you keep track and ensures customers respect your payment terms.
Stage 1: The Friendly Payment Reminder (Day 2-5 After Default)
First, assume that the invoice has simply been overlooked.
Tone: Polite, service-oriented, no accusations.
Content: Send a copy of the invoice, refer to invoice number and amount.
Sample Wording: *"Surely it has escaped your attention in the hustle of everyday life, but we have not yet received payment for invoice no. 123..."*
Stage 2: The 1st Reminder (Approx. 10-14 Days After Default)
If the reminder was ignored, the tone becomes more binding.
Tone: Firm but factual.
Content: Set a new deadline (e.g., 7 days). You can mention reminder fees here (flat rate €2.50 - €5.00), but many still refrain from this in stage 2 to show goodwill.
Stage 3: The 2nd/Final Reminder (Approx. 20-25 Days After Default)
Now it's about securing your claim.
Tone: Serious and final.
Content: Last deadline (e.g., 3-5 days). Announcement of further steps (debt collection or judicial reminder procedure).
Important: Now calculate default interest and the flat rate for default damages (for B2B customers often €40 according to § 288 para. 5 BGB).
Legal Basis: When Is a Customer "In Default"?
A debtor automatically falls into default when:
| Situation | Default Onset |
|---|---|
| Calendar-definable payment deadline (e.g., "Payable by 01/15") | Immediately after deadline expires |
| After receiving a reminder | With receipt of the reminder |
| 30 days after due date and receipt of invoice | Automatic (for consumers only with notice on invoice) |
Default Interest According to BGB
- B2C customers: 5 percentage points above base rate
- B2B customers: 9 percentage points above base rate + €40 flat rate (§ 288 para. 5 BGB)
3 Pro Tips for Efficient Dunning
Tip 1: Automation Instead of Manual Work
Manual dunning is often postponed. Use tools like Clever Invoice, which mark overdue invoices and generate reminders with one click. This way you don't miss any deadline and save valuable time.
Tip 2: Pick Up the Phone
Sometimes a short call after the first reminder clarifies more than three letters. Perhaps there was a technical problem with the bank or an unclear detail in the service. A phone call shows professionalism and can even strengthen the customer relationship.
Tip 3: Consistency Shows Results
If you set a final deadline, you must then act. Customers who know that no consequences follow will always pay your invoices last.
Dunning Checklist
| Step | Timing | Action |
|---|---|---|
| Payment reminder | Day 2-5 after default | Friendly email with invoice copy |
| 1st reminder | Day 10-14 | Set new deadline, factual tone |
| 2nd/Final reminder | Day 20-25 | Calculate default interest, threaten debt collection |
| Escalation | After final deadline | Debt collection or judicial reminder procedure |
Conclusion: Act Instead of React
A well-organized dunning system protects your cash flow and ensures that your work is valued. With the right mix of politeness and consistency, you secure the liquidity your business needs to grow.
Want to never write reminders manually again? Clever Invoice automatically reminds you of due payments and generates reminders with one click - legally secure and professional. Try it free now.
Frequently asked questions
Do I have to send a reminder before going to a lawyer?
Not legally mandatory, but strongly recommended. Courts expect that you have given the debtor sufficient opportunity to pay. A documented reminder history strengthens your position.
How high can reminder fees be?
There is no legal upper limit, but the costs must be reasonable. Courts generally accept €2.50-5 for the first reminder and up to €10-15 for follow-up reminders.
When is a debt collection company worth it?
For claims from approx. €100 and after unsuccessful final reminder, debt collection can make sense. Debt collection costs are charged to the debtor. For very small amounts under €50, the effort is often not worth it.
What is the €40 flat rate for B2B?
According to § 288 para. 5 BGB, you can claim a flat rate of €40 for default damages from business customers - in addition to default interest. This flat rate applies per invoice, not per reminder.