Unpaid invoices in Switzerland: chase before year-end

To recover an overdue invoice in Switzerland, first check that payment is due and has not already arrived, then send a written reminder with a clear deadline. Swiss law does not generally require three reminders before debt enforcement; starting in October gives you time to resolve payment blocks before the holidays and year-end accounts.

Why review unpaid invoices in October?

As the end of 2026 approaches, outstanding customer balances deserve a dedicated review. Revenue recorded in your accounts is not necessarily cash available to pay salaries, suppliers or insurance premiums.

October leaves time to correct an invoice, obtain approval from a customer's finance team or agree a repayment schedule. Waiting until December can mean trying to resolve those issues when key contacts are away.

Start by distinguishing outstanding invoices from overdue invoices. An invoice still within its agreed payment period should not receive the same treatment as one that has been overdue for weeks. A dispute about the work also needs a different response from a forgotten payment.

The aim is not to send the largest possible number of reminders. It is to establish what is happening with each balance and what action should follow.

What should you check before sending a reminder?

Reconcile incoming payments against invoices first. Money may have arrived without the correct reference, under another company name or as one payment covering several invoices.

For each remaining balance, check:

• the customer's exact legal identity and billing address;
• the order, contract or accepted quotation;
• evidence that the goods or services were delivered;
• the amount, including deposits and credit notes;
• the payment terms actually agreed;
• whether the invoice reached the correct recipient.

A Swiss QR-bill helps identify a payment. It does not, by itself, prove that the underlying claim is valid.

Use a simple table to organise the next steps:

Assign an owner and a next-action date to every case. A list without responsibility or follow-up dates quickly becomes unreliable.

How many payment reminders are required in Switzerland?

There is no general Swiss legal requirement to send three reminders before initiating debt enforcement. However, a debt being due and a debtor being legally in default are separate questions.

Under Article 102 of the Swiss Code of Obligations, a debtor is generally put in default by a creditor's reminder once the obligation is due. Where the parties have agreed a specific performance date, default can arise when that date expires without a further reminder. The official legislation is available on Fedlex, admin.ch.

A payment date printed unilaterally on an invoice should therefore not automatically be treated as a contractually agreed fixed deadline.

A courteous reminder is still good commercial practice. It may resolve an oversight without damaging the relationship. But an internal policy of always sending three reminders should not leave an important balance unresolved indefinitely. Also check whether your contract contains specific provisions.

Can you charge late-payment interest and reminder fees?

Article 104 of the Code of Obligations generally provides for default interest of 5% a year on a monetary debt once the debtor is in default. Check the official wording on admin.ch and the contractual terms before calculating an amount.

This is not a flat 5% penalty added with every reminder. The calculation depends in particular on the outstanding principal and the duration of default. A partial payment changes the remaining balance used in the calculation.

Reminder fees are a separate matter. Adding an arbitrary fee to a second letter does not automatically make it payable. Its contractual or legal basis needs to be checked, while claims for additional loss are subject to further conditions.

For a disputed or substantial balance, seek advice before accumulating interest and charges. A transparent calculation is more useful than a total that neither party can readily explain.

What reminder schedule works before December?

The following is a suggested internal workflow, not a statutory Swiss timetable.

First step: verify and remind

After the due date, check the payment reconciliation again. Send a short reminder with the invoice attached. Ask for payment or a specific expected payment date if the transfer has not yet been made.

Second step: contact the right person

If there is no response by the stated deadline, contact the accounts team or the person who ordered the work. Identify the actual obstacle: a missing invoice, purchase order reference, outstanding approval or cash-flow difficulty.

Record the conversation and confirm any payment promise in writing. This gives both parties the same date to work towards.

Third step: state the next decision clearly

If the matter remains unresolved, send a formal payment request with a clear deadline and the next action you are considering. Do not threaten automatic debt enforcement if nobody is responsible for reviewing the case and preparing the file.

Every deadline should trigger a check. That check should lead either to a documented agreement or to a deliberate decision about further action.

What should a first payment reminder say?

Adapt this template to the contract and the history of the case:

Subject: Invoice [number] — outstanding balance CHF [amount]

Dear [name],

Unless we have overlooked a payment, invoice [number] for [service], due on [date], remains outstanding. The remaining balance is CHF [amount].

Please find the invoice attached. We would appreciate payment by [date], or confirmation of your expected payment date.

If you have already paid, please send us the payment date and reference so we can trace it. If an unresolved issue is preventing payment, please let us know so that we can address it.

Thank you and kind regards.

Keep the sent message and any replies. For a formal notice, choose a delivery method that allows you to document its contents and receipt as far as possible.

What if the customer requests instalments?

A specific repayment plan may be better than a vague promise. Record the agreement in writing, identifying the invoices, outstanding balance, payment amounts and dates. Include the treatment of any interest and fees.

Assess whether the proposed payments are credible and compatible with your own cash needs. Signing a plan does not settle the debt. Monitor each incoming payment and decide in advance how to respond if an instalment is missed.

If you continue working for the customer, consider the terms for new work separately. An agreed deposit may be appropriate. Do not retrospectively change the terms of an existing contract.

When should you consider Swiss debt enforcement?

Debt enforcement may be an option when a documented debt is due and remains unpaid despite your efforts. Prepare the contract, invoices, delivery or service evidence, correspondence and an updated calculation of the balance.

The official portal ch.ch explains Swiss debt enforcement and the role of the relevant debt enforcement office. Filing an enforcement request does not mean that the validity of the claim has been decided by a court. The debtor may lodge an objection; continuing the process then requires the appropriate steps to remove that objection.

Before incurring further costs, assess the strength of your evidence, the amount likely to be recoverable and the debtor's circumstances. Obtain legal advice for complex disputes or cross-border cases.

How should unpaid invoices be treated at year-end?

An invoice unpaid on 31 December is not automatically a final bad debt. Distinguish ordinary late payment, doubtful recovery and an established loss, then assess whether a value adjustment is required.

For businesses subject to commercial bookkeeping requirements, Articles 957 onwards of the Code of Obligations provide the statutory framework, available on admin.ch. Records of collection efforts help support the assessment and valuation of receivables.

VAT treatment depends, among other things, on the reporting basis and the circumstances of the debt. Do not adjust VAT simply because a reminder has gone unanswered. Consult the Federal Tax Administration's guidance on estv.admin.ch and discuss the case with your accountant.

With Sequence, invoicing and reconciliation using imported bank statements can be brought into the same workflow, providing a practical basis for checking receipts before sending reminders.

Before December, aim for a clear outcome: every overdue invoice has a reliable status, an owner, a next action and an understood impact on your cash forecast.