Expert knowledge for digital decisions

How to Effectively Automate Dunning?

Short answer

With fixed stages and deadlines, but requiring approval before dispatch. Fully automated reminders can damage customer relationships if a payment has only been booked late or if a complaint is ongoing. The system should generate the proposal, and a human should confirm it.

A Common Staging Model

Stage	Timing	Tone
Payment Reminder	7 days after due date	friendly, no fee
1st Reminder	14 days later	factual, with deadline
2nd Reminder	14 days later	with announcement of further steps
Transfer	after expiration	collection or legal action

The specific deadlines are business policy, not law.

What Can Be Automated

Identify overdue items
Determine appropriate stage
Generate letters from templates
Set reminders

What Should Not Happen Automatically

The Dispatch. Reasons:

The payment has been received but not yet booked
A complaint is ongoing
There is an agreement for installment payments
It is a major customer with a special relationship

A reminder to a customer who paid yesterday costs more than it brings in.

The Practical Setup

A daily proposal with all due reminders. A person reviews it in five minutes, checks off or postpones. The dispatch is then done collectively.

Default Interest and Flat Fee

In business transactions between companies, in addition to default interest, a flat fee can be claimed according to § 288 Abs. 5 BGB. Whether this is sensible in individual cases is a business decision – it is legally permissible.

This text does not replace legal advice.

Key facts

Automation: Identification and creation
Do not automate: The dispatch
Effort for approval: About five minutes daily

Sources

All external claims are backed by traceable sources.

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Bürgerliches Gesetzbuch (BGB) Bundesministerium der Justiz