What is a non-payer?

A non-payer is an individual or company with outstanding invoices that have not been paid within the agreed-upon term. This can occur incidentally or structurally and sometimes has major consequences for the creditor (creditor). In this knowledge article, we explain exactly what a non-payer is, what the causes and consequences of non-payment are, and how you can best deal with this.

Definition of a non-payer

A non-payer is a customer who, despite payment reminders and dunning notices, refuses or neglects to settle outstanding invoices. This can have various causes, such as financial problems, unwillingness, or administrative errors. Legally, a debtor is in default when the payment term has expired and a formal notice of default (payment reminder) has been sent.

Causes of non-payment

Non-payment can have various causes, including:

• Financial problems: A customer or company may be in temporary or structural financial difficulty. As a result, invoices are sometimes paid later or not at all.
• Unwillingness or conscious non-payment: Some debtors consciously try to delay or evade payments. This can have various causes.
• Administrative errors: Invoices can get lost, be addressed incorrectly, or be unclear. If an invoice is incorrect, a customer often waits to pay until action has been taken.
• Miscommunication: Disagreements about delivered services or products can lead to payment arrears. In cases of serious problems, an invoice may be seen as disputed.

Consequences of non-payment

Non-payment has consequences for both the creditor and the debtor:

• For the creditor: If multiple sales invoices are not paid, this can lead to problems for the company. For instance, more time must be spent on accounts receivable management, and financial problems can arise. Liquidity comes under pressure when cash flows are delayed for too long.
• For the non-payer: Extra costs, as interest and collection costs often have to be paid. Moreover, non-payment can lead to a negative credit registration (BKR) and possible legal steps. As a result, costs will only increase.

How do you deal with a non-payer?

To deal effectively with a non-payer, you can take the following steps:

1. Send a friendly payment reminder: Sometimes a customer has simply forgotten the payment. A friendly reminder will then ensure the invoice is paid properly.
2. Send a formal payment reminder (aanmaning): If the customer does not pay, you can send a formal payment reminder. This is an official written notification in which there is an urgent request to pay.
3. Engage a collection agency: If the payment remains outstanding, the invoice can be transferred to the collection agency. For example, incasso.nl specializes in collecting invoices without the intervention of a judge. Over 90% of payment arrears are resolved this way at incasso.nl.
4. Consider legal steps: In extreme cases, legal proceedings may be necessary to enforce payment. You can also easily start a legal collection procedure via incasso.nl.

Preventing non-payment

There are several ways to keep the chance of non-payment as small as possible:

• Conducting credit checks on new customers.
• Using clear payment terms and conditions.
• Setting up direct debits and automated payment reminders.

Conclusion

A non-payer can have major consequences for your company. Fortunately, there are effective methods to deal with this. By taking proactive measures and engaging a collection agency in a timely manner, many problems can be prevented.