Payment terms and reminders

Unless stated otherwise, an invoice is due on receipt. In practice, most businesses use a thirty-day term, sometimes longer in large organisations. The term shown on the invoice applies if it has been accepted, which is why it is useful to mention it in the quote or contract as well.

A short term can be justified for small amounts and private customers. For business engagements, a realistic term that is respected is better than a tight deadline that is routinely missed.

The debtor is in default after being formally requested to pay by the creditor, or from the due date when a specific term has been agreed. From that point, the Code of Obligations provides for default interest of 5% per year unless a higher rate has been agreed.

This interest is not a penalty to threaten immediately. A restrained reference in your invoice terms is enough to set expectations, and it remains available if the delay continues.

A courteous reminder a few days after the due date is enough in most cases: the invoice may simply have been forgotten or lost in an inbox. A second reminder ten to fifteen days later restates the amount, overdue date and payment method. The third uses a more formal tone and sets a specific deadline.

The best reminder tool is still an easy way to pay. Attaching the document again with its QR payment section lets the customer settle it in seconds, often while reading the message.

After several unanswered reminders, the ordinary route in Switzerland is to file a debt enforcement request with the debt enforcement office at the debtor's domicile or registered office. Proceedings can be started without a prior court judgment, subject to an advance on costs.

Before reaching that point, a phone call is often more effective than another letter. A written and dated instalment agreement can recover the debt while preserving the relationship.