Unpaid invoices: consequences and methods of recovering money - Cashcollector
Niezapłacone faktury konsekwencje i metody odzyskiwania pieniędzy

Unpaid invoices are a problem that many entrepreneurs encounter on a daily basis. In today’s article, we will look at the consequences of unpaid invoices and present effective methods of recovering money.

Unpaid invoices: what are your options when a customer doesn’t pay?

Unpaid invoices pose a significant challenge for entrepreneurs. According to data, every month as many as 880 people search the Internet for information about unpaid invoices. The reasons may vary – from the client’s financial difficulties to simple negligence. For companies waiting for payment, this not only means a loss of funds, but also affects financial liquidity.

The most common reasons for not paying invoices:

  1. Customer’s financial problems: debtors often struggle with financial difficulties, which makes it difficult for them to pay their liabilities on time.
  2. Administrative negligence: accounting errors, omissions or missing documentation are the reasons why invoices may remain unpaid.
  3. Unclear contract terms: Imprecise or incomplete contracts can lead to disputes over the scope of services, making payment difficult.

Legal consequences of unpaid invoices

If outstanding debts are not settled, the legal consequences may be severe. The law provides for deadlines within which action must be taken to recover the money. Exceeding these deadlines may lead to additional disputes. Finding the right legal remedies and actions can be crucial to your success.

Legal consequences for people who do not pay invoices include:

  1. Deterioration of financial credibility: unreliability in settling invoices may result in a decrease in the debtor’s financial credibility. This, in turn, affects the ability to obtain loans or sign new business contracts.
  2. Increasing costs in the form of penalty interest: according to the law, late repayment generates interest. Debtors must face rising costs that, over time, can significantly exceed the original amount owed. The amount of the debt collection fee is regulated by Art. 10 of the Act on counteracting excessive delays in commercial transactions. Pursuant to this provision, the amount of compensation depends on the size of the receivable.

The debt collection fee is:

  • EUR 40 if the value of the cash benefit does not exceed PLN 5,000;
  • EUR 70 if the value of the cash benefit is higher than PLN 5,000 but lower than PLN 50,000;
  • EUR 100 if the value of the cash benefit is equal to or higher than PLN 50,000.
  1. Risk of bailiff enforcement: in the event of failure to settle obligations, the creditor may decide to initiate bailiff enforcement. For the debtor, this means the possibility of seizing property in order to satisfy the debt.
  2. Restrictions on business activities: the debtor may encounter difficulties in continuing to operate its business activities. Failure to settle obligations is the basis for the creditor to file a bankruptcy petition for such contractor.
  3. Entry into the register of debtors: the creditor has the right to enter the debtor into the register of debtors, which may result in difficulties in obtaining leases and negatively affect business relations.
  4. Image losses: failure to settle invoices may lead to loss of trust among contractors and affect the debtor’s reputation on the market. A questionable reputation may also mean the need to pay advance payments on possible future contracts or orders, and contractors will not agree to deferred payments.
  5. Escalation of legal conflicts: if there is no consent to repay liabilities, the debtor must prepare for the possibility of initiating court proceedings, which generates additional costs and stress related to the legal conflict.

Deadlines and process steps:

  1. Payment deadline: Once the invoice payment deadline has passed, the creditor can start the recovery process.
  2. Sending a reminder: The first step is usually to send a reminder about the overdue payment. This is a stage of soft debt collection aimed at obtaining payment without the need to involve the court.
  3. Request for payment: If there is no response to the reminder, the creditor may issue an official request for payment. This is a more formal letter that sets a deadline for settling the debt.
  4. Judicial debt collection: if the demand for payment is unsuccessful, the creditor may take legal action by initiating court proceedings. This is already the stage of the so-called hard debt collection.
  5. Bailiff enforcement: if a court judgment is issued in favor of the creditor, the bailiff may take enforcement actions, such as seizing the debtor’s property.

If standard activities such as soft debt collection or reminders are ineffective, it is worth considering using more advanced solutions, such as an automated debt collection system, to effectively manage the debt recovery process.

Consequences of unpaid invoices for your business

Unpaid invoices not only affect the current financial situation, but may also threaten the stability of the company. When the number of unpaid invoices increases, maintaining financial liquidity becomes more difficult. Automating the debt recovery process, especially for small amounts, can be crucial to protect against the negative effects of unpaid invoices.

Also remember that there is no minimum debt collection amount, as you can read about, among others, here: https://cashcollector.eu/en/blog/is-there-a-minimum-debt-collection-amount/

How to recover money from unpaid invoices: 3 ways

The debt recovery process can take various forms. From gentle reminders and soft debt collection to more decisive steps, such as using the services of traditional debt collection companies.

It is worth adapting the strategy to a specific situation. The third way is to use the services of companies such as Cash Collector, which offers a modern approach to recovering money, especially for small amounts, thanks to an automated debt collection system.

Compensations and interest on unpaid invoices

The law provides for the possibility of charging compensation and interest on unpaid invoices. This is important to cover the additional costs associated with failure to pay on time. By knowing the rules for calculating interest and compensation, you can protect your interests.

Calculation of interest for late payments:

The law provides for the possibility of charging interest for late payments. Typically, the statutory rate applies, which is currently 8% per annum. However, if the contract provides for a different rate, this rate will apply.


  • Debt amount: PLN 10,000
  • Interest rate: 8%
  • Delay: 30 days



As a result, the accrued interest will amount to PLN 65.75.