You cannot collect an outstanding invoice forever. An invoice can expire. When the limitation period of your outstanding invoice has expired, the right to demand payment of a claim expires. The moral obligation to pay an invoice remains, but you can no longer enforce payment through the courts. It is therefore important to keep a close eye on this limitation period and to ensure that your invoice does not expire.
Limitation period for business claims
A legal limitation period applicable to business claims depends on the country you are based. However, the period starts at the moment the claim becomes due. That is the due date of the invoice. If the payment period of an invoice is 30 days, the limitation period starts after those 30 days have elapsed.
TIP! You can easily interrupt the limitation period by sending a suspension letter.
Payment obligation remains
After the expiry of the limitation period you can no longer enforce payment of your invoice through the courts. However, a natural commitment remains. That means that your customer still has a payment obligation. If your customer still pays, you do not have to repay this on the basis of an undue payment.
Advice on the limitation and interruption of a limitation period
Do you have an outstanding invoice? Do you want to prevent your invoice from expiring? Or do you have questions about the limitation and / or interruption of a claim? Then please contact us. Our can help ensure that your invoice is still paid.