Notice to pay: what is it for and how to use it?

What exactly is a formal notice to pay?

A formal notice to pay is a formal claim addressed to the debtor. It marks the end of the amicable collection phase and the transition to a more binding phase.

Why it marks a turning point in the process

Formal notice constitutes written proof that you have requested payment. It allows you to accrue interest for late payment and prepares for possible legal action .

Unlike simple reminders, it has a legal value recognized by the courts, especially if sent by registered mail with acknowledgement of receipt.

When should you send a formal notice?

You can't send a formal notice too early or too late. It must arrive at the right time after several unsuccessful reminders campaigns, to remain credible and effective.

After how many reminders?

The law does not require no minimum number of reminders before issuing a formal notice. That said, best practice recommends at least two or three friendly reminders before resorting to it.

This step-by-step process provides proof that you have attempted an amicable resolution, which weighs in your favor in the event of a dispute .

The various government sources and standard legal fact sheets recommend :

• 1st reminder: D+5 after due date

• 2nd reminder between D+15 and D+20

• 3rd reminder from D+30, often the last reminder before formal notice

How long will it take to remain credible?

The period allowed for payment in the formal notice must be sufficiently clear and reasonable .

In practice, the majority of creditors indicate a 8 to 15 days from receipt of the letter.

This timeframe is not specified in the law, but case law considers that a time too short (e.g. 24h) makes the formal notice legally ineffective .

Conversely, too long a delay unnecessarily delays possible actions (payment order, summons, etc.).

To remain professional and credible, plan ahead:

• 10 days for a simple claim

• 15 days for a large sum or a strategic customer

• Clearly state that failure to pay within this period will result in prosecution

How to write a good formal notice?

A well-written formal notice must be clear, precise and legally valid . This is the document that can trigger legal action, so you can't afford to be approximate.

Mandatory information and legal forms

Your letter must include certain elements essential for its validity :

• The identity of the creditor (your company or yourself)

• The debtor's identity (the customer concerned)

• The nature of the claim (bill, service, rent, etc.)

• The exact amount due with interest for late payment

• Reminder of the deadline for payment (e.g. "within 10 days of receipt")

• A explicit legal formula such as : "I hereby give you formal notice to pay the sum of €XX within XX days of receipt of this letter. Should you fail to do so, I shall be obliged to initiate legal proceedings."

The tone must remain firm but professional . You don't need to use complex terms, but you do need to express a clear intention to sue if payment is not made.

The different channels: registered mail, email, bailiffs

Le sending channel influences the legal value of your formal notice :

• Registered mail with acknowledgement of receipt (LRAR) it's recommended mode It proves that the debtor received the letter and on what date. It is also the form most commonly used in court.

• Email In some cases, this may be possible, particularly if previous exchanges have been made electronically. But beware: the absence of proof of receipt by the debtor may pose a problem.

• Bailiff for large receivables or if you wish to set maximum weight to the formal notice, the use of a judicial commissioner can be strategic. He delivers the formal notice in person, with irrefutable proof.

What are the practical effects of a formal notice?

A formal notice is more than just a reminder: it also has concrete legal effects who can help you move your case forward, or prepare legal recourse if necessary.

Triggering interest on arrears

Sending formal notice officially accrues interest for late payment on the amount due, if this is not already the case. In accordance with Article L441-10 of the French Commercial Code If you are in a B2B relationship, you can claim:

• From interest for late payment on the key ECB interest rate + 10 points

• A flat-rate indemnity of €40 for collection costs (automatic, without justification)

Example: for an unpaid invoice of €2,000, the legal interest rate applicable since July 2024 is 12.5% annual or approximately 0.34 per day of retard.

The starting point for future litigation

Formal notice paves the way for legal proceedings . You cannot not initiate an injunction to pay or take legal action without first clearly requesting payment by a traceable means.

It therefore marks the end of the amicable phase and the start of a formal framework: from then on, any delay or refusal can be legally operated .

Use as evidence before a judge

A well-written formal notice sent through a traceable channel constitutes proof essential if you have to go to court. It proves that :

• You have informed the debtor of the debt

• You gave him a reasonable time to pay

• You are acting in good faith and have tried to reach an amicable settlement

A judge can use it to justify the award of damages or application of penalties . It's also a fundamental element of a payment order .

Is it possible to send a formal notice to an individual?

Yes, you can send a formal notice to a private individual, but the legal framework is stricter than in a relationship between professionals.

You must comply with precise rules to avoid any abuse of rights.

Consumer receivables

A consumer debt concerns a debt contracted by an individual for non-business purposes (e.g. online purchases, home services).

In this case, the formal notice is still authorized but must comply with articles L111-1 et seq. of the French Consumer Code .

Here are the points to remember:

• The limitation period is 2 years from invoice due date

• La formal notice must not contain any unfair terms or exert disproportionate pressure

• The use of a threatening tone can be considered an aggressive commercial practice sanctioned by the DGCCRF

The content of the letter must remain clear, factual and respectful . The aim is to assert your rights without undermining consumer legal protection.

Precautions to take to stay within the law

Before sending a formal notice to an individual, check :

• That the claim is well-founded due and payable (no outstanding disputes, past due date)

• That you use neutral language without psychological pressure or unjustified threats

• Whether you offer a reasonable deadline for payment usually 8 to 15 days

Also avoid multiply aggressive relaunches This could be construed as harassment. If the customer contests the invoice or claims to be in difficulty, try to reach an amicable agreement or a payment schedule before considering legal action.

Copy and paste a sample payment demand letter

Here's a sample formal notice that you can adapt to your own situation. This model includes the mandatory information and complies with shape and tone expected in the context of amicable collection.

Subject: Notice to pay

[Your name or your company's name]
[Address][SIRET / RCS if applicable][Telephone - Email]

For the attention of [Name of debtor].
[Full address]

Place, date

"Madam, Sir,

In the absence of error or omission on our part, you remain liable for the sum of [amount in € incl. VAT] corresponding to invoice no. [number] issued on [date] and expired on [expiry date] .

Despite our previous reminders dated [dates] This invoice remains unpaid to this day.

Herewith, we give you formal notice to pay this amount within 8 days from receipt of this letter, i.e. by [deadline] . After this deadline, we reserve the right to initiate any useful procedure to obtain payment, including legal action.

We would like to remind you that, from the date of this formal notice interest on arrears may be applied in accordance with article L441-10 of the French Commercial Code, as well as a lump-sum indemnity for collection costs from 40 €.

Payment can be made by [means of payment] payable to [your name / company] .

We look forward to receiving your prompt reply.

[Signature][Position, company]"

What happens next?

Once the formal notice has been sent, you have several options depending on the debtor's reaction (or lack of reaction).

Judicial collection (injunction to pay, summons)

If the customer still does not pay after the period specified in the formal notice, you can initiate a legal action. legal proceedings .

The fastest route is the order for payment under articles 1405 et seq. of the French Code of Civil Procedure. All you have to do is file a petition with the clerk's office of the competent court, including :

• A copy of the invoice

• Proof of reminders

• A copy of the formal notice

This procedure is free and non-contradictory which results in a order for payment without summoning the debtor.

Once the order has been obtained, it must be served by bailiff. If the debtor does not contest the order, it becomes binding .

In the event of a serious dispute, you will have to go through a writ of summons on the merits longer and more costly.

This procedure involves a exchange of contradictory arguments and, potentially, a judgment hearing . On average, a classic dispute can last 6 to 12 months .

Amicable solutions before litigation

Before going to court, it is often a good idea to try a final mediation or negotiation . You can suggest :

• Un payment schedule

• A exceptional discount if immediate settlement

• Un telephone or physical contact to unblock the situation

These options allow you to avoid legal costs while recovering all or part of the amount due. According to Ministry of the Economy approximately 8 out of 10 disputes find an amicable solution when a structured discussion is initiated before litigation.

Anticipate delays with Hero and cash advances

The formal notice comes late in the billing cycle. To avoid this, you can secure your cash flow as soon as the invoice is issued . Hero offers you a simple solution: immediate cash advance on your professional invoices .

You send in your invoice, Hero advances you the funds under 48 hours . No need to wait 30, 45 or 60 days for payment. In the event of non-payment, Hero takes care of collection for you, with no impact on your customer relations.

Save time, energy and cash . Opt for peace of mind with Hero.