Essential general terms and conditions for debt collection and debtor management

14 May 2026

Many entrepreneurs underestimate the importance of general terms and conditions, as they are often not read or ultimately not needed to fall back on. Why would you emphasize general terms and conditions if the collaboration with a client or supplier is running smoothly, and there are no issues with payments?

Why general terms and conditions are crucial

Proper general terms and conditions form the backbone of an effective collection policy and accounts receivable management, among other things. Your general terms and conditions contain important matters, especially concerning invoices and payments. For instance, they include rules regarding payment terms, warranties, and the responsibilities of both you and your client (the debtor). Whether you work with business or private clients, well-drafted terms strengthen your position and prevent problems such as non-payment or unclear responsibilities.

For example, without a clear agreement on payment terms, you may deal with clients who consistently pay late. This can disrupt your cash flow and necessitate legal proceedings. By drafting watertight general terms and conditions, minimize this risk and optimize your collection process.

Essential clauses in general terms and conditions

A solid set of general terms and conditions should at least contain the following elements for the debt collection process:

Payment terms: The general terms and conditions must clearly state which payment term is applied.
Additional costs: It must be clearly stated which (collection) costs are charged for late payments.
Liability: Define the responsibilities of all parties and limit your liability where possible.

Differences between business and private clients

It is essential to distinguish between general terms and conditions for business (B2B) and private (B2C) clients. This is because the legal requirements for these groups differ:

For business clients

Freedom: In business relationships, you have more room to draft customized terms, such as deviating payment terms or higher collection costs in case of non-payment.
Payment term: The statutory maximum payment term is 60 days. Should you wish to make separate arrangements, you must record this in your general terms and conditions. Note, a term of more than 60 days is only permitted if it does not disadvantage either party.

For private clients

Consumer protection: Strict rules apply to consumers, such as maximum collection costs and transparency requirements. For instance, you are required to follow the Collection Costs Act (WIK) when calculating additional costs, and in certain cases, you must account for the cumulative regulation of the Debt Collection Quality Act (Wki).
Accessibility: Use understandable language and state all terms explicitly. It is also important that you always communicate these to the client before the sale of a product or service.
Reflection period: Take into account statutory reflection periods for agreements, as consumers have a legal 14-day cooling-off period for online purchases.

Common mistakes with general terms and conditions

General terms and conditions are essential for your business operations. Yet, many entrepreneurs make mistakes when drafting them. Common errors include:

Vague language: Formulate clearly and avoid terms susceptible to interpretation, such as 'usually' or 'in principle'.
Standard terms: Many companies use generic general terms from a general source. The danger here is that important aspects for your specific company or market are missing.
Not up to date: Ensure your terms comply with the latest legislation.
No legal check: Have an expert review your terms to prevent conflicts.
Incorrectly communicated: To avoid problems, it is important to communicate the general terms and conditions to the client before the purchase of a product or service.
Not requesting agreement: If you cannot demonstrate that a client has agreed to the general terms and conditions, there is a risk of problems during legal proceedings. Therefore, always ensure that the client has explicitly agreed to your terms, for example, with a mandatory checkbox during the ordering or onboarding process.

Benefits of good general terms and conditions

Having proper general terms and conditions has various advantages for your company.

Clarity: If both parties have made clear agreements, the chance of problems and disputes is significantly smaller.
Getting paid faster: Customer payment behavior will improve once it is clear how late payments are handled, such as the calculation of interest and collection costs.
Efficiency: Good general terms and conditions with the right provisions accelerate various processes, such as legal procedures in case of payment disputes.

5 important tips regarding general terms and conditions

Therefore, we are happy to provide you with the following advice:

Always include your general terms and conditions with your quotes, as a reference to your website is not sufficient.
When a quote or agreement is signed, ensure your debtor also signs for the receipt of your general terms and conditions.
If you receive a signed agreement or quote containing purchase terms, read them carefully. These often contain deviating provisions, for example regarding payment terms, compared to your own general terms. If you do not respond, you automatically agree to the other party's purchase terms as well.
Review your own general terms and conditions at least once a year. It may happen that your services change or that you offer new products with different terms. By reading your own terms, you can see if they are still adequate and have them adjusted if necessary.
It is advisable to have your general terms and conditions screened every 3 to 4 years. Legislation changes from time to time, for example the Collection Costs Act and GDPR, which prevents many problems.

incasso.nl is happy to think along with you!

General terms and conditions are a crucial part of your collection policy and accounts receivable management. They protect your company, ensure clear agreements, and help prevent disputes. Do you need help drafting or optimizing your terms? We at incasso.nl are happy to review them with you to ensure your general terms and conditions are complete and legally watertight.

Would you like to know more about general terms and conditions, or would you like us to screen or redraft them for you? Please contact contact@incasso.nl or call 0348-486425.