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Blog post

Robin Musch

1 min read time

July 1, 2026

A foreign party is not paying: what now?

An unpaid invoice from abroad directly impacts your cash flow. In our practice, we see entrepreneurs who wait too long to take action. Assets can disappear, evidence fades, and debtors' financial situation deteriorates. With the right first steps, you significantly increase your chances of payment. What do you do in the first 30, 60, and 90 days?

What are the legal implications?

The sooner you act, the greater the chance of payment. Internationally, every step requires attention to statutes of limitations, formalities, and local practice. The wrong tone or hasty legal steps can make negotiation impossible. A structured approach balances pressure and pragmatism.

What steps are you taking?

Directive 2011/7/EU on combating late payments regulates B2B payment terms, automatic commercial interest (8 percent above the ECB rate in 2026), and collection costs (minimum 40 euros) under Section 6:96 paragraph 4 of the Dutch Civil Code. Under Dutch law, Section 6:119a of the Dutch Civil Code regulates commercial interest. For legal proceedings, the EPO (Regulation 1896/2006) and EAPO (Regulation 655/2014) apply. Preservative attachment under Section 700 of the Dutch Code of Civil Procedure requires sufficient evidence.

What risks and costs do you face?

Waiting too long leads to the loss of evidence and assets. Insufficient formal notice of default allows interest and costs to accrue without basis. Poor communication precludes an amicable solution. With international clients, reputational damage can harm your relationship. Unfamiliarity with local procedures wastes crucial time.

How did a client handle this?

We represented a Dutch exporter with an unpaid invoice of 240,000 euros from an Italian client. Immediately after the due date, a friendly reminder; after 14 days, a formal demand; after 30 days, a notice of default with a 14-day period under Article 6:82 of the Dutch Civil Code. In the meantime, we called the contact persons and discovered that a payment problem was at play. With no response, an EAPO application followed after 60 days. The client paid 215,000 euros plus interest within three months.

What is your first action?

Respond quickly: day 1 reminder, day 14 demand letter, day 30 notice of default. Document everything. Call contact persons and involve them early. Assess the statute of limitations under Article 3:307 of the Dutch Civil Code and possible insolvency. Start with an amicable process, but build up pressure. Use EPO, EAPO, and arbitration where appropriate. See also our article on How to collect from a foreign debtor?

Frequently asked questions

What interest can I claim?
Within the EU, under Directive 2011/7/EU, commercial interest of at least 8 percent above the ECB rate applies automatically, plus collection costs. Pursuant to Article 6:119a of the Dutch Civil Code, this interest applies from 30 days after the due date (B2B). You may contractually agree on a higher interest rate, provided it is reasonable. Outside the EU, the interest is determined by the contract or national law. Document the due date and send a notice of default to effectively claim interest.
Can I suspend payment to another debtor?
Under strict conditions, you may suspend payment to the counterparty if they are in default under Article 6:262 of the Dutch Civil Code. For set-off between different claims under Article 6:127 of the Dutch Civil Code, a sufficient connection must exist. Rules vary internationally, and suspension is risky without a clear basis. Contractually incorporate rights of suspension to strengthen your position.
When is a claim time-barred?
Limitation periods vary widely: the Netherlands five years under Article 3:307 of the Dutch Civil Code; Germany three years under Section 195 of the German Civil Code; England six years under the Limitation Act 1980; France five years under Article 2224 of the German Civil Code; Italy ten years. The limitation period can be interrupted by summons, notice of default, or acknowledgment under Article 3:317 of the Dutch Civil Code. Document acts of interruption carefully. Are you awaiting payment from a foreign party? Request no-obligation debt collection advice via muschlegal.nl. Musch Legal – your specialist in international commercial law.