When does an invoice become time-barred?

The standard limitation period for invoice claims is 5 years from the due date. For recurring services (like subscriptions), shorter periods may apply. Debt collection interrupts the limitation period and restarts it.

Can I stop delivering to a client who hasn't paid?

Yes. You have a right of retention: you can withhold further deliveries or services until outstanding invoices are paid. State this clearly in your communication to avoid misunderstandings.

Payment reminders and debt collection: when clients won't pay

What to do when a client doesn't pay — from payment reminders to debt collection proceedings in Switzerland. Step by step, with templates and legal context.

2 min read

Step 1: The payment reminder

If a client hasn't paid by the due date, send a payment reminder. There is no legal requirement for a reminder before initiating debt collection, but it's standard practice — and often resolves the issue without further steps. Give the client another 10–14 days to pay.

Step 2: Final demand

If there's no response to the first reminder, send a final demand. Clearly state that debt collection proceedings will be initiated if payment is not received by a specific date. This is often where payment finally arrives.

Step 3: Debt collection proceedings (Betreibung)

You can initiate debt collection proceedings at the debt collection office (Betreibungsamt) at the client's place of residence. You need: the client's full name and address, the amount owed (including interest and reminder fees), and the basis for the claim (invoice date and number). The process takes 2–4 months and costs CHF 50–200 in fees, which are added to the debt.

Can you charge reminder fees?

Yes, but only if you stated them in your terms and conditions or the original invoice. A flat fee of CHF 20–50 per reminder is common and usually accepted. Interest on overdue payments can be charged at 5% per year from the due date if agreed in the contract.

Frequently asked questions

When does an invoice become time-barred?: The standard limitation period for invoice claims is 5 years from the due date. For recurring services (like subscriptions), shorter periods may apply. Debt collection interrupts the limitation period and restarts it.
Can I stop delivering to a client who hasn't paid?: Yes. You have a right of retention: you can withhold further deliveries or services until outstanding invoices are paid. State this clearly in your communication to avoid misunderstandings.