Guides

#First: check your own invoice

Before assuming the client is refusing to pay, check the boring but common culprits: did the invoice go to the right address or invoicing portal, does it show the correct legal name and registration number, is the purchase order number or reference the client requires included, and does the amount match what you agreed. A large share of all late payments come down to formalities, not unwillingness.

Then pick up the phone. A short call resolves more unpaid invoices than a stern letter, because you quickly find out whether it's an internal processing error, the invoice ended up with someone who's away, or the client actually has payment problems. Note down what you agree on and confirm it in writing.

#Step one: payment reminder

A payment reminder is a written notice that the due date has passed, including the invoice number, amount, original due date and a new final payment date. Keep the tone factual. You want to get paid, not win an argument, and a reminder that sounds businesslike and impersonal often works better than an irritated message.

You're normally entitled to charge late-payment interest once payment is overdue. The interest rate follows the Interest Act, which is based on the Riksbank's reference rate plus a statutory surcharge, and you may also be entitled to compensation for reminder and collection costs, though capped at the statutory maximum amounts. The current reference rate is published by the Riksbank, and the applicable maximum amounts for reminder and collection fees are listed by the Enforcement Authority. If you've agreed on other terms for late-payment interest, those terms apply instead.

#Step two: debt collection

If the reminder doesn't help, the next step is debt collection, meaning a formal collection demand with a clear deadline and information about what happens if payment isn't made. Collection can be handled by a debt collection agency, which in practice is the most common route, or by whoever owns the claim.

Be careful to distinguish between two situations here. A client who isn't paying but also isn't disputing the invoice has an unpaid debt, and the collection route applies. A client who disputes the invoice, claiming the work wasn't done, was faulty, or the price is wrong, has a dispute with you. A disputed claim needs to be resolved, not collected, and sending it to collection won't solve anything and may well make matters worse. Instead, gather contracts, correspondence and proof of delivery and try to reach a settlement.

#Step three: the Enforcement Authority

If the client still doesn't pay, and the debt isn't disputed, you can apply for a payment order (betalningsföreläggande) with the Enforcement Authority (Kronofogden). The Enforcement Authority then orders the other party to pay or contest within a certain time. If the claim is contested, the case can proceed to court, while an uncontested claim results in a ruling that can be used for enforcement.

An unpaid ruling can lead to a payment default record against the other party, which is one reason why simply knowing you're prepared to go this route often gets a payment moving. Current fees, forms and processing times are available at kronofogden.se. Also keep in mind that claims become time-barred (statute of limitations) after a certain period, so don't let an unpaid invoice sit for years.

#Reduce the risk before it happens

The best defence against unpaid invoices happens before the assignment starts. Find out who the client actually is and run a credit check for larger amounts. Write clear payment terms into the agreement. Split larger assignments into partial invoices so you don't have the entire amount outstanding at once. For new clients, long projects, or clients in other countries, an advance payment or instalments is a reasonable request, not a sign of distrust.

Also invoice quickly and correctly. An invoice sent right after delivery, with accurate details and a sufficient description of what was done, gets paid on average sooner than one sent long afterwards. Keep track of due dates so you notice a delay within days, not weeks.

#Let someone else handle the collection

As a light entrepreneur, it's the light-entrepreneurship company that is the seller in relation to the client and therefore owns the claim, meaning reminders and any collection are handled by the company, not by you. With Truster, you invoice without setting up your own company and get paid a salary with tax and contributions already handled. The platform is built by a payment institution authorised by the Finnish Financial Supervisory Authority and is used by more than 55,000 people across the Nordics. Truster is opening in Sweden by invitation: join the waitlist.