A warning letter to a non-paying customer – what should be written in it and when to send it?

A warning letter to a non-paying customer is a letter whose purpose is to inform the customer that the business owner is ready to file his claim with the court, but gives the customer a last chance to settle the debt and avoid legal costs, which may be very significant (the higher the debt, the more likely the legal costs and Lawyer's fees Both sides' costs will be higher, and whoever wins the lawsuit will get a refund. Legal expenses from the losing side).

Why do business owners hesitate to send a warning letter to a non-paying customer?

במציאות הכלכלית של ימינו הרבה מאוד בעלי עסקים מתקשים לגייס לקוחות חדשים, ומסיבה זו משתדלים לשמור על הלקוחות הקיימים ככל הניתן, גם אם מדובר בלקוחות קיימים עם מוסר תשלומים "בעייתי".

Many business owners prefer to deal with a customer who does not pay, the main thing is that he does not leave the business, and continues to consume services. The assumption of those business owners is that that customer will continue to consume services/continue to buy products and will eventually pay his debt in full. In most cases, this assumption is an incorrect assumption that only complicates the business owner further.

In today's reality, many customers accumulate very large debts to a very large number of business owners and eventually begin bankruptcy proceedings. Insolvency or bankruptcyIn this situation, the business owner discovers that he has lost much more than if he had sent a warning letter to a non-paying customer very close to the date the initial debt was incurred.

כיום אסור לחכות ללקוח ש"יואיל בטובו" לשלם את החוב. לקוח שמרשה לעצמו להיות חייב לבית העסק הוא לקוח ש"דופק" את העסק. מעבר לכספים שבית העסק עשוי להפסיד, לקוח שכזה גורם גם לבזבוז הרבה מאוד זמן כדי לגבות את החוב. זה בא לידי ביטוי בהתכתבויות בוואטסאפ, שיחות טלפון ולעיתים אפילו מספר פגישות במטרה לגרום ללקוח הסורר לשלם את כל חובו או לפחות חלק ממנו.

כשאתם "רודפים" אחרי הלקוח ומנסים "לשכנע" אותו בנועם לשלם לכם את החוב, אתם מעבירים ללקוח הסורר מסר שגוי – שאתם לא תגישו נגדו תביעה ותאפשרו לו לשלם מתי שהוא יבחר לנכון. במצב כזה ברור שהלקוח הסורר לא ימהר לשלם לכם.

Why is it important to send a warning letter to a non-paying customer as soon as possible?

Assume that a customer who does not pay your business is a customer who does not pay other businesses either. In other words, if the customer owes you money, it is likely that he also owes quite a bit to other people. For this very reason, you should not wait too long after the debt has been incurred towards your business, and you should send Warning letter To a customer who doesn't pay.

If you don't act soon, you will discover that many other business owners have filed lawsuits against the same customer, and the customer may pay the entire debt to those businesses or compromise with them in some way. In such a situation, the customer's money may run out and not be enough to settle the debt for your business as well.

Another possibility that always exists is that, due to the multiple claims against the customer, he will simply be forced to take insolvency proceedings, and in such a case, you can only regret not having acted earlier against the customer, when he still had the funds and the ability to pay you and settle the debt with your business.

What should be included in a warning letter to a non-paying customer?

A warning letter to a non-paying customer is not Claim And it shouldn't be particularly long or detailed. The details will come as part of the lawsuit if you actually have to submit it to the court.

What you do need to detail in a warning letter to a non-paying customer are the basic facts, such as: when you provided the customer with the service or product, what product or service you provided, how much the customer undertook to pay you, when the last payment was due, the fact that you spoke/corresponded with the customer regarding payment of the debt before sending the warning letter, reference to the fact that non-payment of the debt causes you damages and that you retain your right to sue the customer for these damages (i.e., the claim will be filed not only for the amount of the debt), a demand to pay the debt in full within 7 days, and that if the debt is not paid, you will be forced to go to court and demand the full debt, compensation for the damages, and payment of legal costs.

Typically, a warning letter to a non-paying customer should not exceed one to two pages in length.

Example of a warning letter to a non-paying customer

Here is a very basic example of a warning letter to a non-paying customer:

August 12, 2023

in honor of

Mr ____________

address____________________

By registered mail with delivery confirmation (other means are also possible) 
– Without prejudice to the rights –

Hello,

Subject: Warning before taking legal action

I have the honor to address you on behalf of my client, Mr. _________, as follows:

1. בתאריך ______________ נחתם הסכם התקשרות ביניכם לבין מרשי, במסגרתו רכשתם את פעילות חברתו של מרשי תמורת _____________ בתוספת מע"מ.
2. Despite the clear payment terms set forth in the agreement, my client has not yet received all the funds due to him, and as of today, there is a balance remaining to be paid in the amount of _____________ ש"ח, and this is after my client agreed to your request to receive a discount on the open debt account.
3. My client has contacted you a significant number of times, over a long period of time, to have you settle the debt, but to this date my client has not received any cooperation or actual payment.
4. Under these circumstances, my clients have no other choice but to announce that If the entire outstanding debt balance is not paid within 7 days from today, my client will take all legal measures at his disposal, And will also demand the amount of the discount given on account of the open debt., including interest and linkage as required.
5. No further notification will be sent.
6. Nothing in this letter is intended to exhaust my client's claims in the matter and/or to derogate from any right and/or remedy to which he is entitled by law.

With great respect,

אדי בליטשטיין, עו"ד

As you can see, the wording of a warning letter to a non-paying customer is very concise and its main purpose is to make the recipient of the letter understand in a focused way what your demand is and how long you expect this demand to be met. If you do not receive a response within the time period specified in the letter, you will be forced to file a Financial claim or Civil lawsuit Against the customer.

When to send a warning letter to a non-paying customer?

There is no uniform rule for sending a warning letter to a non-paying customer, and this depends, among other things, on the type of customer, the amount of the debt, what you have done so far to collect the debt, whether or not you have guarantees for payment of the debt, how important the customer is to you, whether or not the customer has ordered additional goods/services from you, and many other considerations that may be relevant.

Before sending the letter to the customer, try to talk to the customer first. During the initial conversation, try to understand the reason for the non-payment of the debt. You may find that it was a minor mistake or that the customer simply forgot to pay (this also happens sometimes), and after the conversation, the customer may hurry up and pay the debt.

לעומת זאת, יתכן שתגלו אחרי השיחה שהלקוח מתחיל "למרוח" אתכם ומספר לכם סיפורים. במקרה כזה נסו לקיים שיחה נוספת עם הלקוח אך הפעם תקליטו אותו, ושאלו אותו מדוע הוא לא משלם את החוב למרות שהתחייב בשיחה הקודמת להסדירו בהקדם. הקלטה זו עשויה לסייע לכם בהמשך, אם תצטרכו להגיש תביעה לבית משפט (במקום שיחה מוקלטת אפשר גם להיעזר בתכתובות וואטסאפ).

Two weeks after the debt is not paid, you should consider sending the client a formal warning letter from a lawyer. When the client sees that you have hired a lawyer, he may contact you himself to settle the debt, in order to avoid legal proceedings and additional legal expenses.

The latest date to send a reminder letter to a non-paying customer is one month after the debt is due. If the customer has not settled the debt, at least partially, one month after the last payment date, it is unlikely that they will do so at a later date, so you should act quickly to collect the money the customer owes you.

In conclusion

מכתב התראה ללקוח שלא משלם מטרתו היא לגרום ללקוח להסדיר את החוב כמה שיותר מהר. אל תתמהמהו יותר מדי לפני משלוח מכתב שכזה. נסו תחילה לשוחח עם הלקוח או להתכתב איתו בוואטסאפ כדי להבין מה הסיבה לאי התשלום, וכמובן תנו לו הזדמנות להסדיר את החוב, אך אם אתם רואים שהלקוח "מורח" אתכם ולא מתכוון להסדיר את החוב בהקדם, עליכם לפעול באופן רשמי מול הלקוח ולשלוח מכתב שמודיע לו שאם הוא לא יסדיר את החוב בהקדם אתם תאלצו להגיש נגד תביעה לבית המשפט.

Frequently Asked Questions Regarding a Warning Letter to a Non-Paying Customer