Late Payment Reminder Letter Template for Germany

A Late Payment Reminder Letter, known as "Mahnung" in German law, is a formal document that serves as your legal tool for collecting overdue payments. Under German Civil Code (BGB) § 286, sending this reminder is typically required to establish that your debtor is in default, unless you previously agreed on a specific payment date. This document not only demands payment but also legally positions you to charge default interest and pursue additional remedies.

When do you need this document?

You need a Late Payment Reminder Letter when invoices remain unpaid beyond their due date and you want to formalize your collection efforts. This is particularly important in commercial transactions where the EU Late Payment Directive 2011/7/EU sets strict standards for payment terms. The letter is essential before you can charge default interest rates under BGB § 288, which allows for higher rates in commercial transactions (9 percentage points above base rate) versus consumer transactions (5 percentage points above base rate). You should send this reminder as soon as payment becomes overdue to protect your legal rights and maintain cash flow.

Key legal considerations

Your reminder letter must include specific elements to be legally effective under German law. These include complete sender and recipient details, clear identification of the outstanding debt with invoice numbers and amounts, the original due date, and a new payment deadline. Under BGB § 286, the letter formally establishes default status, which is crucial for charging interest and pursuing legal remedies. You should reference any previous payment requests and clearly state the consequences of continued non-payment. The German Commercial Code (HGB) § 353 provides additional provisions for commercial transactions, including specific rules about when interest becomes due in business relationships.

Legal requirements in Germany

German law requires that your payment reminder be clear, specific, and properly documented. Under BGB § 286, the reminder must unambiguously demand payment and set a reasonable deadline for compliance. For commercial transactions, the EU Late Payment Directive implemented in German law provides additional protections, including automatic entitlement to interest from the due date in certain circumstances. Your letter should be sent by registered mail or another method that provides proof of delivery. You must calculate default interest correctly according to BGB § 288, using the appropriate base rates published by the German Central Bank. The document should also warn of potential collection costs and legal action, as these may be recoverable under German law if the debt remains unpaid.