Collecting an unpaid invoice: the complete method

What you need to know from this article:

• A facture is considered to be unpaid from day after maturity if no payment is received.

• Le cover begins with a relance amiable by telephone, e-mail or letter.

• If this fails, you can send a formal notice by registered mail with a 8 to 15 days .

• If no payment is made, we move on to a legal proceedings : order for payment , referral or assignation .

• Le penalty rates is about 12,5 % in 2025, with a mandatory lump-sum indemnity of €40 between professionals.

• A procedure for simplified collection is possible for receivables under €5,000 via a commissioner of justice .

• Le limitation period is 2 ans (if customer individual ) or 5 years (if customer professional ).

• Visit recovery costs (registered mail, bailiff, court clerk, lawyer) are to be borne by the debtor but often advanced by the creditor .

What is a "mise en recouvrement"?

Collection is all the steps taken by a creditor to obtain payment of an overdue invoice.

It can be amiable (reminders, letters, negotiations) or judicial (formal notice, payment order, court proceedings).

His objective is clear: compel the debtor to perform while respecting the legal rules governing commercial relations.

This procedure should not be confused with a simple relance collection involves a formal willingness to settle with legal consequences if the dispute persists.

When does a bill become due and unpaid?

An invoice becomes due and payable on the due date indicated on the document in accordance with the conditions agreed between the parties.

If no deadline is specified, the Commercial code impose payment within 30 days of receipt of goods or services. From the day after this deadline, the invoice is considered unpaid if payment has not been made.

This overrun entitles the creditor to claim late penalties and, where applicable, of initiate collection proceedings .

For this action to be admissible, the invoice must be correctly worded, and have been accepted without reservation by the customer.

What is the procedure for collecting an unpaid bill?

Collecting an unpaid invoice is a three-stage process: first amicable, then formal, and finally legal if necessary.

Step 1: Amicable reminder: reminder and simple letter

The first reaction to unpaid bills is to follow up with the customer, ideally by phone or e-mail, to understand the situation.

In the absence of a response or settlement, a written reminder letter can be sent.

This document reminds you of the amount due, the due date, and proposes fast settlement with no penalties . This step often makes it possible to release the payment without conflict.

Step 2: Formal notice: form, deadline, legal effects

If the reminder has no effect, the next step is to sending a formal notice by registered mail with acknowledgement of receipt .

It constitutes a formal request for payment, gives a precise deadline (usually 8 to 15 days) and warns of the consequences of inaction.

Legally, it interest on arrears and proves that the creditor has attempted an amicable solution.

Step 3: Legal proceedings: injunction, summary proceedings, writ of summons

As a last resort, a number of legal options are available:

• Order to pay est the simplest, fastest solution for uncontested claims.

• Summary proceedings allows you to take urgent action with a lawyer if the situation is blocked.

• Subpoena on the merits The more time-consuming and costly procedure is used in the event of a dispute or in cases of manifest bad faith on the part of the debtor.

What are the deadlines?

Invoice collection is all about meeting deadlines.

Invoice payment terms (30 to 60 days)

In France, the legal payment period between professionals is 30 days from date of receipt of goods or performance of service . It can be increased to 60 calendar days maximum if both parties expressly agree by contract.

The statute of limitations (2 or 5 years, depending on the customer)

The creditor has a limitation period within which to take legal action. This period is :

• 2 ans for a claim between a professional and an individual (consumer);

• 5 years for a claim between professionals.

Once this period has elapsed, the right to collect the debt is lost. definitively lost even if the bill remains unpaid.

What are the penalties for late payment?

If the payment deadline is exceeded, penalties may be applied ipso jure, without prior reminder.

The legal rate and calculation of late payment penalties

Late payment penalties must be specified in the GTC, contract or invoice . Otherwise, the minimum rate applicable is that f set by the European Central Bank (ECB) plus 10 points.

In 2025, this represents a rate of approximately 12.5% if the ECB rate is 2.5 .

The calculation is as follows Penalties = (amount incl. VAT x annual rate x number of days late) / 365

Flat-rate indemnity of €40 for collection costs

This allowance is mandatory for all late-paid invoices between professionals . It is automatically added to late payment penalties.

The amount is set at 40 € non-negotiable, in accordance with article D441-5 of the French Commercial Code . It does not apply to neither to private nor to public customers.

Other costs recoverable in court

In the event of legal proceedings, other costs may be added: bailiff's, lawyer's, formal notice or expert's fees.

These costs must be justified and validated by the judge to be recoverable . In B2B, a contractual clause can also provide for additional compensation.

Injunction to pay: a rapid solution

An injunction to pay is a simple, fast and inexpensive legal procedure for recovering a debt.

Conditions of use and required documents

This procedure is reserved for certain, liquid and due receivables . This means that the amount due must be clearly defined, uncontested, and the due date has passed.

The creditor must provide :

• A copy of the invoice,

• Reminders and/or formal notice,

• Any signed contract or purchase order,

• Applicable terms and conditions .

Filing the petition and the judge's decision

The request is made via an application to the clerk's office of the competent court (commercial court for professionals). No lawyer is required.

The judge examines the application without a hearing. If there are no anomalies, he issues a order for payment .

Obtaining a writ of execution and possible seizure

If the debtor does not contest the order within one month, the creditor may request the affixing of the executory clause .

This title entitles the holder to call in a commissaire de justice (formerly a bailiff) to seize bank accounts, wages or personal property.

Simplified debt collection for claims under €5,000

Since 2020, a simplified procedure has made it possible to quickly collect small debts without going to court. This route is ideal for undisputed invoices of less than €5,000.

Direct procedure via a court commissioner

The creditor directly seizes a commissioner of justice (formerly a bailiff), by sending him the documents proving the debt (invoice, contract, reminders, etc.).

The commissioner of justice verifies eligibility and then contacts the debtor to obtain its agreement on the amount to be paid.

Out-of-court settlement or issuance of a writ of execution

If the debtor accepts, a enforcement order If the debtor refuses or does not respond, the creditor must return to conventional legal proceedings (injunction to pay). However, if the debtor refuses or does not respond, the creditor must revert to conventional legal proceedings (injunction to pay).

How to protect yourself against unpaid bills

Even before issuing an invoice, there are a number of best practices you can follow to limit the risk of having to initiate collection proceedings.

Check customer creditworthiness upstream

Before concluding a contract, remember to check the customer's financial situation .

This can involve :

• An analysis of its balance sheets (if a company)

• Searches via commercial databases

• Or a request for a payment guarantee.

When in doubt, give preference to a deposit on order.

How to draw up the general terms and conditions of sale (GTCS)

The General Terms and Conditions must clearly include :

• Terms of payment

• Deadlines

• Late payment penalties

• Lump-sum compensation.

In the event of a dispute, these references are binding.

Make sure formally accept the GCS at the time the order is placed, particularly in B2B exchanges.

Use factoring or credit insurance

Solutions for customer risk management exist. Factoring allows you to delegate collection to a third party who advances you the funds .

Credit insurance indemnifies the company in the event of payment default. These tools provide peace of mind in the event of doubts about certain customers.

How much does a collection procedure cost?

Initiating collection proceedings has a cost, which depends on the steps you choose.

The cost of a reminder or formal notice

La relance amiable (by e-mail or regular mail) is free if you manage it in-house. On the other hand, if you use a collection service provider, management fees may apply.

La formal notice by registered mail costs approximately €5 to €8 (postage) . It can also be drafted by a lawyer, in which case a fee will be charged ( often around €100 to €200 before tax ).

Fees for legal proceedings (injunction, bailiff, lawyer)

Payment orders are inexpensive: between €35 and €45 for registry fees.

If you go through a commissaire de justice (formerly bailiff) rates are regulated: count on around €20 to €50 for service, plus administration costs.

In case of writ of summons on the merits However, costs can quickly escalate (several hundred euros), especially if you call on the services of a lawyer.

Who pays in fine? The debtor or the creditor?

In theory, the recovery costs are borne by the debtor . You can claim late payment penalties, the €40 indemnity, and certain additional costs.

But in practice, amicable collection is often at the creditor's expense This is why it's so important for you to be able to take advantage of all the opportunities offered by the law. Hence the importance of To assess the cost/benefit ratio before taking any action.

Collecting an unpaid invoice requires method, rigor and responsiveness. From amicable reminders to legal proceedings, each stage must be carried out with precision to maximize the chances of recovery. There are tools available to limit the risks, but the prevention is not always enough. To secure your cash receipts without delay, put your trust in Heropay .