01Dunning: The Preliminary Step Before Debt Collection
Before initiating formal debt collection proceedings (Betreibung), you should first send payment reminders to your client. In Switzerland, there is no legal obligation to send reminders before filing a collection request -- you could go straight to the debt collection office. In practice, however, a proper dunning process is essential for two reasons: First, it demonstrates to the court in a later legal proceeding that you clearly requested payment. Second, many outstanding invoices can be resolved through reminders alone, without ever reaching the formal collection stage.
A proven dunning process consists of three stages:
- Friendly payment reminder -- a brief note that the invoice is still outstanding. No accusation, just a reminder. Ideally sent 5-10 days after the payment deadline.
- First formal reminder (1. Mahnung) -- a more formal tone, with a new deadline of e.g. 10 days. Optionally with a reminder fee (e.g. CHF 20). Clearly stated as a formal reminder.
- Second reminder with threat of debt collection (2. Mahnung) -- final deadline (e.g. 10 days), with an explicit notice that debt collection proceedings will be initiated if payment is not received. Send via registered mail.
02The Debt Collection Process Step by Step
The Swiss Federal Act on Debt Enforcement and Bankruptcy (SchKG) governs the debt collection process in Switzerland. Here is how it works:
You file a collection request at the debt collection office (Betreibungsamt) at the debtor's place of residence or registered office. This can be done in writing, in person at the counter, or online via EasyGov or the e-SchKG platform. The request must include the debtor's details, the amount claimed, the reason for the claim and any applicable interest.
The debt collection office serves a payment order to the debtor -- usually in person by an official. The payment order informs the debtor about the claim and their rights (in particular, the right to file an objection).
The debtor can file an objection (Rechtsvorschlag) within 10 days of receiving the payment order. This means they contest the claim. The objection requires no justification and temporarily halts the proceedings. If the debtor does not file an objection, the process can continue directly.
If the debtor has filed an objection, you must apply to the court to have it removed. There are two options: Provisional removal (provisorische Rechtsöffnung) -- if you can present an acknowledgment of debt (e.g. a signed contract or order confirmation). Definitive removal (definitive Rechtsöffnung) -- if you already have a legally binding court judgment or public deed.
After the objection has been removed (or if none was filed), you file a continuation request with the debt collection office. This can be done at the earliest 20 days and at the latest 1 year after the payment order was served.
Depending on the type of collection proceedings, either seizure of assets (Pfändung, for individuals and sole proprietorships) or bankruptcy proceedings (Konkurs, for legal entities registered in the commercial register) will follow. In a seizure, the debt collection office confiscates the debtor's attachable assets to satisfy your claim.
03How Much Does Debt Collection Cost?
The costs of a debt collection are based on the amount of the claim and are regulated in the Fee Ordinance to the SchKG (GebV SchKG). They are borne by the debtor, meaning you can add them to the outstanding amount. Here is an overview:
| Claim amount | Collection costs | Court fees (approx.) |
|---|---|---|
| Up to CHF 500 | CHF 40-60 | CHF 150-300 |
| CHF 500-5,000 | CHF 60-80 | CHF 200-400 |
| CHF 5,000-20,000 | CHF 80-104 | CHF 300-600 |
The collection costs include the fee for the payment order and the continuation request. If it comes to a court hearing for removal of the objection, additional court fees apply, which vary by canton. For claims above CHF 20,000, costs increase accordingly. All fees are charged to the debtor and can be added to the claim.
04Key Deadlines at a Glance
Strict statutory deadlines apply in debt collection proceedings. Here is an overview of the most important ones:
| Deadline | Duration | Legal basis |
|---|---|---|
| Filing an objection | 10 days from service | SchKG Art. 74 |
| Payment after payment order | 20 days from service | SchKG Art. 88 |
| Continuation request | 1 year from payment order | SchKG Art. 88 |
| Seizure proceedings | 1 year from seizure | SchKG Art. 116 |
Particularly important: The 20-day period after the payment order is a blocking period -- you may not file the continuation request before it expires. The one-year period, on the other hand, is a forfeiture deadline. If you miss it, you must start the collection process from scratch.
05Practical Tips for Creditors
These measures will help you strengthen your position as a creditor and make the debt collection process more efficient. Clear payment terms and conditions on your invoices already make a big difference:
- Submit online via EasyGov or e-SchKG -- this saves time and postage. Many debt collection offices accept electronic submissions.
- Always have contracts and order confirmations signed -- a signed document counts as an acknowledgment of debt and makes provisional removal of objection significantly easier.
- Request a debt collection register extract from new clients -- this lets you check their creditworthiness and identify risks before entering into a business relationship.
- Always send reminders via registered mail -- this is the only way to have proof of delivery that is accepted as evidence in court.
- Define payment terms clearly -- include an explicit payment deadline on every invoice (e.g. 30 days net). This prevents disputes about when the default begins.
- Keep thorough documentation -- carefully file all invoices, reminders, emails and contracts. In a court proceeding, you need to be able to substantiate your claim.
06Automate Your Dunning Process with einzly
A structured dunning process is the best prevention against outstanding receivables. Use our reminder template as a starting point. With einzly, you can automate the entire process -- from the first payment reminder to the final warning.