Payment reminders and dunning: three steps with templates

One reminder after the due date is enough. In Germany it puts your client in default (§ 286 (1) BGB). In Austria the client is in default as soon as the money isn't in your account on the due date (private clients only have to order the transfer that day). Payment reminder, notice and final notice are business practice, not law. Start friendly and end clear. Here are the rules for both countries and templates you can copy.

What is the difference between reminder, notice and final notice?

Only the tone changes. The law treats them the same.

The gaps are a rule of thumb. Each step has to come after the due date and clearly ask for payment. Otherwise, in Germany, it doesn't count as a reminder under § 286 BGB.

Every step names:

1. invoice number, invoice date and the open amount
2. the original due date
3. a new deadline with a date ("by 6 October 2026", never "immediately")
4. your bank details and the payment reference
5. from the first notice on: late-payment interest and, between businesses, the flat fee

When exactly is your client in default?

Interest runs from the day of default. Know that day.

Germany: the rules of § 286 BGB

Your client can get into default in three ways:

1. A reminder after the due date (§ 286 (1) BGB). Default starts once the reminder reaches the client. One is enough.
2. A calendar date (§ 286 (2) no. 1 BGB). If you agreed "payable by 15 September 2026", the client is in default on 16 September without any reminder.
3. The 30-day rule (§ 286 (3) BGB). At the latest 30 days after the due date and receipt of the invoice, the client is in default even without a reminder. The count does not start at the invoice date.

With consumers, the 30-day rule only applies if the invoice says so. One sentence does it:

Zahlst du nicht innerhalb von 30 Tagen nach Fälligkeit und Zugang dieser Rechnung, kommst du auch ohne Mahnung in Zahlungsverzug (§ 286 Abs. 3 BGB).

There is no default while the delay isn't the client's fault (§ 286 (4) BGB), for example because your invoice never arrived.

Austria: the due date is enough

In Austria the client is in default once they miss the agreed or statutory payment date. You need no reminder for that, and none before going to court. For bank transfers between businesses, the money has to be credited to your account on the due date (§ 907a (2) ABGB). Private clients only have to order the transfer that day (§ 6a (2) KSchG).

So put a date on every invoice, for example "payable by 15 January 2027". Then everyone knows when default starts. Send a reminder anyway. It's the cheapest way to get paid.

Which templates can you copy?

Replace the placeholders in square brackets. The example: invoice RE-2026-118 of 1 September 2026 for €2,400, due 15 September 2026, business client in Germany. The German versions are in the German version of this guide.

Subject: Payment reminder: invoice [RE-2026-118]

Dear [name],

I hope you are well. This is a friendly reminder that invoice [RE-2026-118] of [1 September 2026] for [EUR 2,400.00] was due on [15 September 2026] and is still showing as unpaid on our side.

If the payment is already on its way, please disregard this message. Otherwise, I would be grateful if you could transfer the amount by [29 September 2026] to:

Account holder: [name]
IBAN: [IBAN]
BIC: [BIC]
Reference: [RE-2026-118]

Please let me know if anything about the invoice is unclear.

Kind regards,
[your name]

Subject: Second reminder: invoice [RE-2026-118] is overdue

Dear [name],

Despite our reminder of [22 September 2026], invoice [RE-2026-118] of [1 September 2026] for [EUR 2,400.00] remains unpaid.

Please settle the outstanding amount by [6 October 2026]. You have been in default since [date default began]; statutory late-payment interest of [10.52] % per year applies from that day.

Account holder: [name]
IBAN: [IBAN]
BIC: [BIC]
Reference: [RE-2026-118]

If there is a problem with this invoice, please call me directly so we can sort it out quickly.

Kind regards,
[your name]

Subject: Final notice: invoice [RE-2026-118]

Dear [name],

Invoice [RE-2026-118] of [1 September 2026] is still outstanding despite two reminders, most recently on [29 September 2026]. The amount now due:

Invoice amount:                         [EUR 2,400.00]
Late-payment interest [10.52] %, [30] days:   [EUR 20.75]
Flat fee under [§ 288 (5) BGB]:          [EUR 40.00]
Total now due:                          [EUR 2,460.75]

Please transfer the total by [20 October 2026]. If we have not received payment by then, we will pass the matter to [a collection agency / the court] without further notice, and the costs of doing so will be added to your account.

Kind regards,
[your name]

The 10.52 % in the templates is the German B2B rate, valid until 31 Dec 2026. For a client in Austria, use 10.73] % (§ 456 UGB, valid until 31 Dec 2026) and "flat fee under § 458 UGB". With private clients the flat fee drops out and the rate is lower. The right rate and the maths are in [Late-payment interest, or use the calculator.

Can you charge reminder fees and the €40 flat fee?

The flat fee (B2B). If your client is a business and in default, you are owed €40: in Germany under § 288 (5) BGB, in Austria under § 458 UGB. It comes on top of the interest. Consumers don't pay it.

Reminder fees. Neither country sets fixed reminder fees by law. You can only recover actual, reasonable costs caused by the default:

• Germany: the first reminder, the one that triggers default, costs the client nothing. After that you can claim specific costs (postage, say) as damage from default. Between businesses, the €40 flat fee is set off against those costs (§ 288 (5) sentence 3 BGB), so you don't get both.
• Austria: costs above the €40 can be claimed under § 1333 (2) ABGB if they were necessary and in proportion to the claim.

Many templates add a flat €10 or €15 per letter. Unless you agreed that with the client, it is open to challenge. Leave it out and claim interest and the flat fee, which the law covers.

How do you write payment reminders in English?

German has one word, Mahnung. English uses a different term for each step:

Skip "dunning letter" for the first step. It's the literal translation, but to a British or US client it sounds like a collection agency. Short, polite emails like the templates above work better than long letters.

Clients abroad. Within the EU, the Late Payment Directive (2011/7/EU) sets a floor for business transactions: at least 8 percentage points above the reference rate and at least €40 compensation. Which law applies depends on your contract. Put governing law and place of jurisdiction in the quote or your terms, name the currency in every reminder, and give transfers from outside the EU a few extra banking days before you escalate.

When should you use collection or the courts?

If the final notice doesn't work, you have two routes:

• Germany: the court dunning procedure (gerichtliches Mahnverfahren, §§ 688 ff. ZPO). You apply for a Mahnbescheid at the competent dunning court, online and without a lawyer. If the client doesn't object, an enforcement order follows.
• Austria: the Mahnklage in the dunning procedure (§ 244 ZPO) for money claims up to €75,000. The court issues a payment order (Zahlungsbefehl). If the client doesn't object, it becomes final.
• Collection agency: an agency chases the debt for a fee. What the client has to pay for it is capped in both countries. Get advice if in doubt.

Call first. Often the invoice is still open because it sits in the wrong inbox.