Unpaid invoices: preventing and managing disputes

Main causes of unpaid invoices

Before launching a recovery procedure, you need to understand why your client hasn't paid.

The most common reasons: simple oversight (especially if you don't send a reminder), unexpressed dissatisfaction with the service, temporary or chronic financial difficulties of the debtor, or errors in the invoice itself.

An incorrect email address, an erroneous amount, incorrectly calculated VAT or missing bank details can block payment. These common invoicing errors are avoidable with a little attention.

Identifying the cause allows you to adapt your approach: a simple courteous reminder is often enough for an oversight, whilst dissatisfaction first requires dialogue.

Preventing unpaid invoices: best practices before invoicing

The best strategy against unpaid invoices remains prevention.

Acting upstream saves you time-consuming reminders and costly procedures. Three essential measures drastically reduce your risks: checking your clients' creditworthiness before accepting a project, clarifying payment terms from the start, and issuing impeccable invoices.

These practices only take a few minutes but effectively protect your cash flow. They also establish a professional framework that deters bad payers.

Investing time in prevention saves you considerably afterwards.

Checking your clients' creditworthiness

For new clients or significant projects, minimal verification is essential.

Consult the Swiss commercial register to confirm the legal existence of the company and identify the beneficial owners. Request commercial references or contact other suppliers if possible.

For recurring clients, analyse their payment history: do they respect deadlines? Have they previously disputed invoices without valid reason?

These checks aren't about paranoia, but pragmatism. They allow you to adapt your conditions: deposit for a new client, cash payment for a risky profile, or monthly invoicing for a reliable partner.

Clarifying payment terms from the start

Misunderstandings about payment deadlines generate many avoidable unpaid invoices.

Clearly define in your general terms and conditions or contract: the payment deadline (30 days remains the norm in Switzerland), accepted methods (bank transfer, credit card), and applicable late payment interest in case of non-compliance.

Mention these conditions on each invoice. For complex projects, integrate payment milestones linked to deliverables in your project tracking.

A clear framework protects both parties and facilitates recovery if necessary.

Issuing clear and compliant invoices

A professional, error-free invoice significantly reduces disputes.

Check the presence of all mandatory information in Switzerland: your complete details, those of the client, unique invoice number, issue date, detailed description of services, amounts excluding and including VAT, applicable VAT rate, and payment deadline.

Systematically use the QR-invoice compliant with Swiss standards to facilitate payment. BePaid invoices automatically integrate all these elements and generate valid QR-codes.

A clear and compliant invoice gets paid faster and is disputed less.

Amicable reminder: first step of recovery

When an invoice exceeds its due date, the amicable reminder always constitutes the first step.

This progressive approach preserves the client relationship whilst recovering your money. Most unpaid invoices are settled at this stage, without legal proceedings.

A structured reminder process combines precise timing, appropriate tone and systematisation. It's about firmly reminding your rights without unnecessary aggression.

Three elements determine the effectiveness of your reminders: timing, wording and regularity. Neglect one of these aspects and your recovery chances decrease significantly.

Recommended reminder schedule

An effective reminder schedule spans three to four weeks after the due date.

First courteous reminder 5 to 7 days after the due date: simple reminder, neutral tone, possibility of an oversight. Second firmer reminder at 15 days: mention of payment terms, reminder of possible late payment interest.

Third reminder at 30 days: formal notice announcing legal action if no payment within 10 days.

Adapt this schedule according to the client relationship (more flexibility for a loyal partner) and the amount involved (closer reminders for significant sums).

Tone and content of reminders

The wording of your reminders directly influences their effectiveness.

Always remain professional, even when facing a chronic bad payer. Progress in firmness with each reminder without tipping into aggression.

Systematically include: the invoice number, exact amount, initial due date, and your complete bank details. Propose solutions if relevant (payment facilities, instalments) for a client in temporary difficulty.

The reminder email examples help you find the right balance between firmness and diplomacy.

Automating reminders to save time

Manually reminding each unpaid invoice consumes valuable time and generates oversights.

Automating the first reminders solves this problem: your system automatically sends a courteous reminder a few days after the due date, then a second reminder if necessary.

BePaid integrates this automatic reminder functionality: you define your schedule and message templates, the platform takes care of the rest. You intervene manually only for problematic cases requiring a personalised approach.

Result: systematisation of recovery, reduction of payment delays, and freeing up your time for higher value-added tasks.

Legal procedures in Switzerland: from payment order to debt collection

When amicable reminders fail, Swiss legal procedures offer a structured framework for recovery.

The Swiss debt collection system unfolds in several progressive stages, from initial summons to actual seizure. Each stage involves specific costs and deadlines.

Understanding this process allows you to assess whether the procedure is worth the amount to recover. For significant receivables, these procedures often remain unavoidable.

The management of disputes requires rigour and patience, but frequently results in payment.

Payment order (summons to pay)

The payment order constitutes the first official step of recovery in Switzerland.

You file a debt collection request with the Debt Collection Office of your debtor's domicile. The cost remains modest: approximately 50 CHF depending on the canton and the amount of the receivable.

The Office then notifies a payment order to the debtor, who has 10 days to settle or object. This procedure requires no proof of the receivable at this stage.

In many cases, the payment order is enough to trigger payment: the debtor realises you're determined and that the situation is becoming official.

Objection and removal of objection

If your debtor objects to the payment order, two options are available to you.

First option: negotiate an amicable arrangement (instalments, partial reduction) to obtain withdrawal of the objection. This solution avoids legal fees.

Second option: initiate legal proceedings to remove the objection. You must then prove your receivable before a court. This approach generally requires a lawyer and involves significant costs (several hundred to thousands of francs depending on complexity).

Deadlines lengthen considerably: allow several months before obtaining a judgement allowing debt collection. Carefully weigh the cost versus the amount to recover.

Continuation of debt collection and seizure

Without objection, or after removal of objection, you can request continuation of debt collection after a 20-day period.

The Debt Collection Office then proceeds with realisation: seizure of movable property, property seizure if the debtor owns real estate, or salary seizure within certain limits.

Caution: the debtor's minimum subsistence level remains protected by law. A debtor without resources or seizable assets won't allow you to recover your receivable, even with a favourable judgement.

Actual seizure can take several additional months. Patience and determination remain essential.

Using a debt collection agency or lawyer

Outsourcing recovery becomes relevant in certain specific situations.

Call on a professional for high amounts (several thousand francs), particularly recalcitrant clients, or when you lack time or expertise to manage the procedures yourself.

Debt collection agencies generally charge a commission on the amount recovered (15 to 30% depending on difficulty). Lawyers practise fixed fees or hourly rates.

Calculate the cost/benefit ratio: for a 500 CHF invoice, paying 150 CHF commission significantly reduces your margin. For 10,000 CHF, the investment is more justified.

Managing the impact on client relationships

An unpaid invoice doesn't automatically mean the end of the business relationship.

Distinguish the client in good faith facing temporary difficulties from the chronic bad payer who multiplies excuses without ever settling. The former deserves understanding and solutions (instalments, additional deadline), the latter requires firmness and procedures.

For an important client with a positive history, prioritise dialogue before escalation. Propose an arrangement that preserves the relationship whilst protecting your cash flow.

Conversely, don't hesitate to cut ties with a client who accumulates unpaid invoices and consumes your energy without return. Your time is worth money.

When to accept a loss and move on

Some unpaid invoices cost more to recover than they're worth.

For small amounts (less than 500 CHF), procedure costs and time invested often exceed the receivable. A manifestly insolvent debtor will never pay you, even with a favourable judgement.

In these cases, realism is required: provision for or write off the receivable as a loss, learn from the experience, and focus your energy on your solvent clients.

This pragmatic decision frees you mentally and financially. Then apply stricter preventive measures (deposits, enhanced checks) to avoid repeating the mistake. Each unpaid invoice constitutes a learning opportunity to better protect your business.

Unpaid invoices aren't inevitable. By adopting best practices from the start, creditworthiness checks, clear conditions, compliant invoices, you considerably reduce risks. When a delay occurs, rapid and structured amicable reminders remain your best asset: they allow you to recover most receivables without damaging the client relationship.

If reminders fail, Swiss legal procedures offer an effective framework with payment orders and debt collection. But each situation requires a pragmatic assessment: sometimes, accepting a loss allows you to preserve your energy and cash flow.

To simplify your payment management and avoid oversights, BePaid allows you to create compliant invoices, track payments in real time and automate your reminders. You save time and maintain control over your cash flow, without additional administrative effort. Try BePaid for free and focus on your business whilst your reminders manage themselves automatically.