What happens if the customer doesn't pay the invoice?

Sooner or later it happens to most business owners, an invoice becomes overdue with no payment in sight. Here is a practical, factual process for handling it, step by step. This text is general information, not legal advice for your specific case.

Step 1: Double-check before you act

Confirm the payment really hasn't arrived, sometimes a payment takes a day or two to appear in the banking system, or has been recorded with the wrong reference and is hard to find. A quick, friendly email can also resolve misunderstandings, for example if the customer thought the invoice was already paid.

Step 2: Send a clear reminder

If payment still hasn't arrived after the due date, send a payment reminder. It should state the original invoice number, amount, original due date, and a new date by which payment is now expected.

Step 3: Reminder fee, if agreed

Under Swedish law (räntelagen), you may charge a reminder fee of up to 60 SEK, but only if this was agreed in advance, for example in your terms and conditions. You can only charge one reminder fee per debt, and no VAT is added to the fee.

Step 4: Late payment interest

Unless otherwise agreed, you have the right to charge late payment interest from the due date, under Swedish law equal to the reference rate plus eight percentage points. If you have agreed on a different rate in your business terms, that rate applies instead.

Step 5: Further reminders or direct contact

If the customer continues not to respond or pay, it may be time for direct contact, by phone or a personal email, before moving to more formal steps. Sometimes a short conversation resolves things faster than another written reminder.

Step 6: Debt collection

If the customer still doesn't pay, you can hand the case to a debt collection agency, which takes over communication and pursues the debt on your behalf, often for a fee or a share of the amount recovered. The next step after that can be applying for a payment order (betalningsföreläggande) through the Swedish Enforcement Authority (Kronofogden), if the customer still doesn't pay or disputes the debt.

FAQ

Do I have to send a reminder before going to debt collection?

There is no general legal requirement for exactly how many reminders must be sent, but most collection agencies and courts expect you to have given the customer a reasonable chance to pay or dispute before the case proceeds.

Can I charge a reminder fee without having agreed to it?

No, the right to charge a reminder fee only applies if it was agreed in advance, for example in your general terms.

In FakturaKlar you can send a payment reminder to the customer with one click directly from the invoice, and clearly see which invoices are overdue before it's time to act.

Sources

Räntelagen (1975:635), the Swedish Interest Act. For the current reference rate and information on late payment interest and reminder fees, see Sveriges Riksbank and relevant guidance from the Swedish Tax Agency and Kronofogden.