Late or unpaid invoices can cause serious problems for businesses. Here are 100 common questions and answers about your rights and the steps you can take under Swedish law when a customer fails to pay.
1. What does it mean when a customer doesn’t pay?
The customer fails to fulfill their payment obligation according to your agreement.
2. What is an overdue invoice?
An invoice that remains unpaid after the due date has passed.
3. What is the due date?
The date by which the invoice must be paid.
4. Do I have to send a reminder?
No, but it’s common practice to send a payment reminder.
5. Am I allowed to charge a reminder fee?
Yes, if your terms and conditions specify it.
6. How much can I charge as a reminder fee?
60 SEK, according to Swedish law.
7. What is late payment interest (dröjsmålsränta)?
Interest charged on overdue invoices after the due date.
8. How much late payment interest can I charge?
Reference rate plus 8 percentage points, unless otherwise agreed.
9. Must I notify the customer about late payment interest?
Yes, it should be stated in the invoice or your agreement.
10. What is a debt collection notice (inkassokrav)?
A formal demand for payment sent by a debt collection agency, often with extra fees.
11. When can I send a debt collection notice?
After the invoice is overdue and a reminder has been sent without payment.
12. Do I have to hire a collection agency?
No, you can handle debt collection yourself.
13. What is a collection fee (inkassoavgift)?
A fee of 180 SEK that the customer must pay if the debt is sent to a collection agency.
14. What is a payment order (betalningsföreläggande)?
An application to the Swedish Enforcement Authority to establish the customer’s debt.
15. How do I apply for a payment order?
By submitting a form online or by mail to the Enforcement Authority (Kronofogden).
16. How much does it cost to apply?
300 SEK.
17. Can I ask the customer to pay this fee?
Yes, you can add it to the debt.
18. What happens if the customer doesn’t dispute the payment order?
The Enforcement Authority will issue a legally binding decision (utslag).
19. What is a legally binding decision (utslag)?
A ruling confirming the customer’s debt.
20. What happens if the customer disputes the claim?
The case may proceed to the district court.
21. What is a civil case in district court?
A legal process where the court decides whether the customer must pay.
22. Do I need a lawyer in court?
No, but it’s recommended for larger claims.
23. Who pays the legal costs?
The losing party usually pays both sides’ legal fees.
24. Can I use legal expense insurance?
Yes, if your business insurance includes legal protection.
25. What is a written contract?
A documented agreement between you and the customer.
26. Are verbal agreements valid?
Yes, but they are harder to prove.
27. What is a standard contract?
A contract with pre-set terms and conditions.
28. Can I claim payment without a written contract?
Yes, but you must prove that an agreement exists.
29. What is an order confirmation?
A written confirmation of the agreed order.
30. Is an order confirmation valid proof?
Yes, if the customer doesn’t object to it.
31. What is an invoice?
A payment request detailing the amount and payment terms.
32. Is an invoice a contract?
No, it is based on a pre-existing agreement.
33. Can I claim payment if the customer received the product or service?
Yes, if a valid agreement exists.
34. What is proof of delivery?
Evidence that the customer received the product or service.
35. Is proof of delivery important?
Yes, it supports your claim for payment.
36. What is a complaint (reklamation)?
When the customer notifies you that they are dissatisfied.
37. Does a complaint affect the obligation to pay?
Only if the complaint is valid and justified.
38. What is a defect in the product or service?
When the delivered product or service doesn’t meet the agreed standard.
39. Can the customer withhold payment for defects?
Yes, but only to a reasonable extent.
40. What is a dispute (tvist)?
A disagreement over the payment or contract.
41. What is a settlement (förlikning)?
An agreement to resolve the dispute without court involvement.
42. Can I suggest a settlement?
Yes, at any time.
43. What is a payment plan?
An agreement for the customer to pay in installments.
44. Should I accept a payment plan?
It may be better than receiving no payment at all.
45. What is a promissory note (skuldebrev)?
A written acknowledgment of debt.
46. Is a promissory note legally binding?
Yes.
47. What is a guarantor (borgensman)?
A person who guarantees the customer’s payment.
48. Can I collect payment from the guarantor?
Yes, if the customer fails to pay.
49. What is enforcement (utmätning)?
The Enforcement Authority seizing assets to pay the debt.
50. Can I request enforcement?
Yes, if you have a legally binding decision.
51. What can be seized?
Bank accounts, wages, vehicles, inventory, etc.
52. What is a payment default record (betalningsanmärkning)?
A negative credit record affecting the customer’s creditworthiness.
53. How does a customer get a payment default record?
If the Enforcement Authority rules they must pay and they don’t.
54. What is an enforceable title (exekutionstitel)?
A decision that allows enforcement actions.
55. What is voluntary payment?
When the customer pays without enforcement.
56. What is a payment reminder?
A notice reminding the customer to pay.
57. Should I send multiple reminders?
One is usually enough, but you may send more.
58. Can I use a collection agency right away?
Yes, but it’s best to send at least one reminder first.
59. What is a debt recovery process?
The steps you take to collect payment, from reminders to court action.
60. Can I sell the debt to a collection agency?
Yes, this is called factoring or debt transfer.
61. What is factoring?
Selling your invoices to a financial company for immediate payment.
62. Must the customer be informed if the invoice is sold?
Yes, they must be notified.
63. Can I charge interest without a contract?
Yes, according to Swedish law.
64. What is the Swedish Interest Act (räntelagen)?
A law regulating late payment interest.
65. What is the reference rate (referensränta)?
The base interest rate set by the Swedish Central Bank.
66. What is good debt collection practice (god inkassosed)?
Ethical standards for debt collection.
67. Must I follow good debt collection practice?
Yes, if you handle debt collection yourself.
68. What is a customer’s dispute (bestridande)?
When the customer objects to the invoice.
69. Does a dispute stop debt collection?
Yes, you may need to go to court.
70. Can I use the Enforcement Authority if the customer disputes?
No, the case must be resolved in court first.
71. What is a summary process (summarisk process)?
A simplified process for undisputed claims at the Enforcement Authority.
72. What is a civil lawsuit (tvistemål)?
A court process to resolve a payment dispute.
73. Can I request advance payment?
Yes, through prepayment or a guarantee.
74. What is prepayment (förskottsbetalning)?
The customer pays before delivery.
75. Should I require prepayment from risky customers?
Yes, to reduce your risk.
76. What is a credit check (kreditprövning)?
Checking the customer’s creditworthiness.
77. Should I perform a credit check?
Yes, especially for large orders.
78. What is a credit limit?
The maximum amount a customer can owe you.
79. Can I refuse credit to customers with poor credit history?
Yes.
80. What is a delivery stop (leveransstopp)?
Stopping deliveries until payment is made.
81. Am I allowed to stop deliveries?
Yes, if the customer has unpaid invoices.
82. What is an agreed due date?
The date both parties have agreed the payment is due.
83. Can I change the due date after sending the invoice?
Only if the customer agrees.
84. What are payment terms?
The rules you agree on for how and when payment is made.
85. What is an installment plan?
An agreement for the customer to pay in parts.
86. Can I change payment terms after delivery?
Only with the customer’s consent.
87. What is statute of limitations (preskription)?
When a claim becomes invalid after a certain period.
88. When does an invoice become time-barred?
After three years for consumers, ten years otherwise.
89. Can I interrupt the limitation period?
Yes, by reminding the customer of the debt.
90. What is an interruption of limitation (preskriptionsavbrott)?
A reminder that resets the limitation period.
91. What is good collection practice?
Acting professionally and fairly when collecting debts.
92. Can I hire legal help for debt collection?
Yes, a lawyer or legal advisor can assist you.
93. What is a legal representative (ombud)?
Someone representing you legally.
94. Can the customer propose settlement?
Yes, but you are not obliged to accept.
95. What is arbitration (skiljeförfarande)?
A private dispute resolution method without going to court.
96. Can we agree on arbitration?
Yes, but it may be costly for small claims.
97. What is an enforcement order (utslag)?
A ruling confirming the customer’s obligation to pay.
98. What is enforcement (verkställighet)?
The Enforcement Authority collecting the debt.
99. What should I consider when dealing with unpaid invoices?
Act quickly and document everything.
100. Why is legal advice important?
To avoid mistakes and improve your chances of getting paid.
