Do I have to send a defaulting customer three reminders before I am allowed to initiate debt collection, and does the final reminder have to be sent by registered mail? The answer to these two common questions is: No. The dunning process is not regulated by law in Switzerland. It is up to the entrepreneur whether, how quickly and how often he wants to remind a customer of an outstanding monetary claim. There are also no regulations regarding the form. The entrepreneur can send reminders in writing, orally, by phone, by e-mail or even by SMS.
The three-stage reminder system has proven its worthIn practice, the three-stage reminder system is widely used. A payment reminder (first reminder) is followed by a second reminder, then a third with the threat of debt collection. Chasing after money is not one of the most popular tasks in most companies. Moreover, one does not want to annoy a customer with hasty reminders. Nevertheless, it is advisable not to wait too long before sending reminders. Outstanding accounts receivable have caused serious financial problems for many companies.
Many companies also find it difficult to write these unpleasant messages. With formulations such as "Should this letter have crossed with your payment, please consider it to be without object" or "Otherwise, we would be forced to initiate debt collection", one does not want to appear too rude. However, such messages usually do not have the intended effect and are not taken seriously. In a reminder letter, be sure to use a friendly but firm tone (see examples of wording).
Paper is patientIf all reminders remain ineffective, call your customer before you initiate the debt collection. Perhaps your customer will take this opportunity to ask you for payment by installments or an extended deadline. Always have such agreements confirmed in writing. If the customer pays, you have saved yourself the cost and effort of debt collection proceedings. Many companies have very good experience with this procedure. It is certainly worth a try.
Formulation examplesFor reasons of evidence, you should not send your reminders by e-mail, but by letter. It is sufficient if you send the third reminder by registered mail.
Payment reminder (first reminder)"Perhaps in the hustle and bustle of everyday life you have overlooked the fact that you have not yet paid our invoice of March 23. Thank you for making the transfer in the next few days. Do you have any questions? Give us a call."
Second reminder"Despite our payment reminder of April 15, you have still not transferred the outstanding amount of CHF 1250. Please pay this invoice by the end of this week. If you provide us with a proposal, we are also happy to discuss installment payments."
Third and final reminder"You have not responded to our reminders of April 15 and April 30. You have also not submitted a payment proposal to us. We ask you one last time to pay the outstanding amount of CHF 1250 by May 31. Do not let this last deadline pass unused. Otherwise, we will initiate debt collection without further notice. However, we hope that this will not be necessary."
Book tip
Write more professionally
180 Letter and Contract Templates for Everyday Business in Switzerland
The new business reference book "Writing Professionally" contains 180 ready-to-use templates that no SME should be without. Whether credit assessment, collection and debt collection, ordering or - this practical collection of samples is supplemented by examples and legal recommendations from the Beobachter consulting practice,
1st ed. 2010,
Observer Book Publishing, ISBN 978-3-85569-421-1,
320 pages incl. CD-ROM, hardcover, Fr. 58.-.
Do you need legal advice?
The Beobachter Consulting Center offers you and your employees expert advice by telephone on legal issues concerning your company - 6 months for only Fr. 99.-. Order the consulting package for SMEs at
www.beobachter.ch/kmu or 0800 83 0800.