Full version with all templates and detailed checks. Back to the main article

Customer not paying: a clear process for small businesses in Austria

An unpaid invoice initially raises two questions: what amount is your business still entitled to, and when must the customer pay it? You therefore need to look at the job and the account together. A part payment already received may change the outstanding balance, while a complaint about the work needs separate examination.

The reason for the delay matters too. You can respond differently to a customer with a temporary cash shortfall than to one who disputes additional work. Until they reply, you do not know which situation applies. A more strongly worded payment demand does not answer that question.

This guide helps small trades businesses in Austria bring the documents together with the customer's response and use them to decide what to do next. The bathroom renovation example is entirely fictional. An orderly process guarantees neither payment nor success in court.

Invoice and documents: the basis of your claim

The invoice describes what you are charging for. Whether you are entitled to demand that amount, and when payment became due, follows from the job and the circumstances of the work. The right to payment is your claim; the date on which payment is owed is the due date. The WKO explains how the agreement, the progress of the work and, where relevant, receipt of the invoice fit together. ^[1]

For the initial review, place the contract and invoice side by side. The contractual partner must be clear, even if someone else coordinated the work in practice. The quotation and order confirmation show the agreed scope. Include later changes, particularly for additional work. The internal order form helps you compare these details. ^[b]

Records of the work, photographs or agreed inspection reports add to the picture. They show what has been completed or handed over and which work remains unfinished. Keep any complaint with these documents too. This allows you to relate the customer's later response to the specific job.

Deposits, part payments and credit notes already received count towards the amount. A transfer with the wrong payment reference may also belong to this invoice. Only after allocating it can you establish the outstanding balance shown in your records. The recipient, description of the work and bank details on the invoice should match; it must also be possible to trace which documents the customer has received. ^[b]

For contracts for work, § 1170 ABGB generally provides for payment after completion of the work. Under certain circumstances, the provision also allows earlier claims for part payment, for example where work is carried out in separate sections. ABGB stands for Allgemeines bürgerliches Gesetzbuch, the Austrian General Civil Code. ^[2]

A valid agreement may provide for a different payment process for your job. The due date therefore also involves checking whether an agreed acceptance or inspection is still outstanding. A payment deadline added only to the invoice does not replace this assessment. ^[1]

Distinguish between private and business customers

For a bank transfer, it matters whether your contractual partner is acting as a consumer or as a business. B2B means a transaction between businesses. Consumer transactions are subject to special rules under the Konsumentenschutzgesetz, the Consumer Protection Act, abbreviated to KSchG.

Under § 6a paragraph 2 KSchG it is sufficient for a consumer to instruct the transfer on the due date for payment to be on time. This also applies where a payment date has been set in advance. If the amount is not yet in your account that day, this alone does not establish late payment. ^[3]

For a business customer, where a specific payment date has been set in advance, timely value dating generally matters. The amount must then be credited to the creditor's account and available on the due date. Here, the creditor is the business entitled to demand payment. The WKO FAQs on late payment explain this distinction. ^[4]

The table brings the differences together for later checking. It does not establish a general payment period. The due date and the form of payment applicable to your job remain decisive. ^{[4] [1]}

Why payment has not arrived

The documents allow you to trace the outstanding balance. Often, only the customer's response explains why payment is missing. An invoice may be missing, or a question about the work may remain unanswered. A confirmed cash shortfall also calls for a different decision from a dispute about the work.

The following overview sets out five possible situations. ‘Findings’ means what you already know about the case. An assumption remains marked as such until a response or document can clarify it. ^[b]

Silence does not establish that insolvency proceedings have been opened. A statement that the customer cannot pay at present is initially information about their situation. The insolvency process requires the corresponding procedural status; a complaint initially concerns the work and entitlement to payment. The overview is therefore an aid to organising the case. ^[b]

Findings → response → next step supported by the evidence. Our own decision guide, with no real case, payment received or court order. Deal with a dispute about the work separately.

Prepare for the conversation with the customer

The invoice number and reconciled outstanding balance give the conversation a clear reference. First, use a contact method that reaches the customer to establish whether the invoice and records of the work have arrived. There is then room for questions about the work or the amount. The following questions can serve as conversation notes: ^[b]

• Have you received the invoice and the supporting records of the work?
• Do you have a specific query about the amount or the work carried out?
• If you accept the claim, what payment date can you actually meet?

After a telephone call, a written summary with the date and people involved helps. It should make clear whether the customer merely asked for more time or whether you have already agreed a new date. And a promise to pay remains a promise until the money actually arrives. The next account check therefore belongs on the agreed date. ^[b]

If a payment reminder is unsuccessful, look again at the unresolved issue. A payment demand can state the basis of your claim and the outstanding balance, and include a specific final date for payment. The term ‘payment demand’ alone does not determine which time limit fits the case. The WKO recommends a written payment demand with a firm final date. ^[4]

For your first message, use the payment reminder templates. Three payment demands are not a general legal prerequisite for bringing a court claim: once payment is actually overdue, a payment demand is generally not required before taking the claim to court. What matters is that you have checked when payment became due and whether the customer is in default. ^[4]

A dispute about the work or a cash shortfall

The customer's response shows which issue needs to be clarified next. A customer who disputes the work carried out is questioning the basis of the invoice. A customer who accepts the claim and asks for more time is discussing their ability to pay it. Each situation needs its own approach.

If the customer disputes the work or extra charges

A specific description makes the complaint clear. Which work does it concern, what does the customer consider wrong and how long has the problem existed? An allegedly leaking shower may require a site visit. You can then compare its condition with the agreed scope and any additional orders. Keep the dates and findings in the case file. ^[b]

Where work is defective, the customer may be entitled to withhold payment. This right to withhold payment may extend beyond the cost of putting a defect right. The WKO information on rights to withhold payment describes the conditions and limits; it covers both business-to-business and consumer transactions. ^[5]

Establish how far the right extends in the particular case before demanding a supposedly ‘undisputed portion’. A complaint alone does not answer that legal question. Statutory liability for defects and any objections also remain part of the assessment where the customer is a business. ^[5]

If the customer is temporarily short of money

If the customer accepts the claim and asks for more time, a voluntary instalment agreement may be an option. For your business, the decision depends on whether the money available will cover upcoming material and staffing costs in the meantime. This available money is your liquidity. ^[b]

A written agreement records the outstanding balance and each instalment. It includes payment dates and bank details, as well as a suitable provision for a missed instalment. The terms must fit the claim and the parties to the contract. Even with a good customer relationship, check that payment has actually arrived on each agreed date. ^[b]

When further recovery steps make sense

If the customer does not respond or an out-of-court solution produces no result, debt collection or a court claim may be considered. The WKO also describes the option of instructing a lawyer to pursue recovery out of court. ^[1]

Use the documents from your initial review. Whoever you instruct will also need the correspondence to date, the customer's objections and any known indications of insolvency proceedings. ^[b]

Before instructing anyone, your business needs clarity on the specific task and the costs involved, including possible procedural costs. There is also the commercial question of whether the debt is likely to be recoverable and how much effort this will take. A valid claim does not mean payment has been received. One person in the business can oversee progress and prevent several parties from working on the same case in parallel. ^[b]

The court procedure for payment orders in Austria

The order for payment procedure is a simplified court procedure for monetary claims. Under § 244 ZPO a conditional order for payment is generally provided for in court actions seeking solely the payment of a sum up to €75,000. ZPO stands for Zivilprozessordnung, the Code of Civil Procedure. ^[6]

The provision contains exceptions. These include a claim that is not yet due and a defendant whose domicile, habitual residence or registered office is abroad. Before going to court, also establish which court has jurisdiction and whether legal representation is required. ^{[6] [4]}

A conditional order for payment does not initially confirm that your claim is valid on its merits. The Federal Ministry of Justice's information on the order for payment procedure explains that the court has not yet examined the merits of the claim at this stage. ^[7]

From service, the defendant has 14 days to pay or four weeks to lodge an objection. An objection means that they contest the order for payment. If an objection is lodged in time, the order ceases to have effect to the extent challenged; ordinary proceedings then follow. If no objection is lodged, it becomes final and binding. ^{[7] [8]}

Even a final and binding order for payment does not guarantee that money will actually arrive. Decisions about further steps therefore still need to take account of costs and recoverability.

Late payment interest, reminder costs and limitation periods

Late payment interest arises where the conditions for late payment are met; recovery costs concern pursuing the claim. The interest and costs you can demand depend, among other things, on the contract, the type of transaction and the conditions for late payment. The WKO information on late payment therefore distinguishes between business and consumer transactions. B2B rules cannot simply be applied to private customers. ^[1]

For recovery of further out-of-court collection costs, § 1333 paragraph 2 ABGB requires, among other things, loss caused by the debtor's fault. The costs must be necessary and appropriate for their purpose, and proportionate to the claim. A fee charged does not therefore automatically become a recoverable amount. ^[9]

For older invoices, limitation periods also matter. Clarify in good time which period applies to the particular claim and when it begins. Another payment demand does not automatically interrupt the limitation period. § 1497 ABGB lists grounds for interruption, including acknowledgement or a court action that is duly pursued. ^[10]

What changes when insolvency proceedings have been opened

Once insolvency proceedings have been opened, the process for insolvency claims changes. The USP information on creditors' interests states that these generally need to be filed with the competent court. The filing deadline is stated in the insolvency notice, the court's announcement of the proceedings. During the proceedings, a bar on court actions and enforcement restricts the individual pursuit of insolvency claims. ^[11]

It is therefore important to classify the claim before filing it. Insolvency claims and claims against the insolvency estate (Masseforderungen) are treated differently; according to the USP information, claims against the estate are not to be filed with the court. For your case, clarify the legal basis and when the claim arose. Legal advice or a creditors' protection association can help with this classification. ^[11]

Fictional example: an unpaid bathroom renovation invoice

Sample with expressly assumed circumstances: A small Austrian plumbing business has completed all the agreed work for a private customer without defects. The contract, records of the work and receipt of the invoice are documented. A due date of 30 September 2026 was validly agreed. On 5 October, the customer confirms that she has not yet transferred the outstanding balance. No insolvency proceedings have been opened in this example.

After deducting the deposit, €3,600 remains outstanding. During the conversation, the customer explains that she has a temporary financial shortfall and asks to pay in two instalments.

The business checks its liquidity and, in this sample, voluntarily agrees two payments of €1,800 each on 15 and 30 October 2026. They total €3,600; interest and costs are not included in this calculation. The agreement and both dates for checking payments are recorded. The example leaves open whether the payments arrive.

Alternative where there is a complaint: If the customer instead alleges a defect, the assumption of undisputed, defect-free work no longer applies. The business arranges a technical examination and assesses what it means for the entitlement to payment. The instalment plan is then not adopted as an automatic solution.

The next step for your business

At the end of each clarification, the case file should show the current position: what is established, which issue remains unresolved, who is dealing with it and when the next check is due. A new response or payment changes that position. Keep the job and invoice linked so that the outstanding balance can be traced. ^[b]

This turns an unpaid invoice into a specific next task. If documents are missing, that means clarifying matters with the recipient; if there is a complaint, it means addressing the disputed work. Further recovery depends on the actual entitlement to payment and the permitted procedural route.

Further guides

• Write a payment reminder: prepare a first factual message.
• Order form: document the actual scope, version and record of changes.

Sources and publication date

The Austrian legal provisions and official information are linked alongside the relevant statements. Sources checked on 16 October 2026. The instalment example is fictional; the decision guide is an editorial aid.

Sources checked for the previous version on 16 October 2026; editorially revised on 17 October 2026. Numbers link to sources; letters explain editorial examples or recommendations. Each note states what the source supports.

[b] Practical recommendations. The suggested processes and decision aids are editorial applications of the cited guidance. Their actual effect on enquiries or jobs has not been measured here.

Sources and context (11 sources)

1. WKO: Zahlungsverzug des Geschäftspartners — Austrian Federal Economic Chamber

   Explains due dates, out-of-court recovery and the differences between business and consumer transactions. This article does not reproduce numerical interest rates, base rates or flat fees. The organisational suggestions are editorial aids. Checked: 2026-10-16.

2. ABGB § 1170: Entrichtung des Entgelts — RIS / Federal Chancellery of the Republic of Austria

   Payment generally due after completion and statutory options for earlier claims for part payment. Does not decide the particular job or its contract terms. Checked: 2026-10-16.

3. KSchG § 6a: Erfüllung einer Geldschuld — RIS / Federal Chancellery of the Republic of Austria

   Timeliness of a consumer's bank transfer to a business, including where a date has been set in advance. Does not establish that a particular transfer has already been made or that a general payment period applies. Checked: 2026-10-16.

4. WKO: Zahlungsverzug des Geschäftspartners – FAQs — Austrian Federal Economic Chamber

   Explains timeliness, value dates and payment demands where payment is actually overdue. The competent court and any requirement for legal representation depend on the case; this article does not reproduce additional monetary thresholds, interest rates or fees. Checked: 2026-10-16.

5. WKO: Zurückbehaltungsrechte — Austrian Federal Economic Chamber

   Section 3 describes withholding outstanding payment for defective work and the limits of that right; the introduction covers B2B and B2C. A complaint alone does not always create such a right; the source does not decide an individual case or automatically release a supposedly undisputed portion for payment. Checked: 2026-10-16.

6. ZPO § 244: Mahnverfahren — RIS / Federal Chancellery of the Republic of Austria

   Claims solely for payment of money up to €75,000 and exceptions, including claims not yet due and a defendant based abroad. Not every monetary claim therefore falls within this procedure automatically. Checked: 2026-10-16.

7. Bundesministerium für Justiz: Mahnverfahren — Federal Ministry of Justice / oesterreich.gv.at

   Conditional order for payment without an initial examination of the merits of the claim; payment and objection time limits and the consequences of an objection. The text does not establish success in a particular court claim or actual receipt of payment. Checked: 2026-10-16.

8. RIS: ZPO §§ 246, 248 and 249 – time limits and objections — RIS / Federal Chancellery of the Republic of Austria

   Officially indexed extract from the consolidated version dated 29 September 2026: § 246 Z 2 (14 days after service), § 248 Abs 2 (four weeks from service) and § 249 Abs 1 (ceasing to have effect to the extent challenged). Retrieval of the full consolidated version timed out. § 248 was also read in full through its ELI; no full retrieval is claimed for §§ 246/249. Checked: 2026-10-16.

9. ABGB § 1333: Gesetzliche Zinsen und weitere Schäden — RIS / Federal Chancellery of the Republic of Austria

   Paragraph 2 refers to loss caused by fault, measures that are necessary and appropriate for their purpose, and proportionality to the claim. Does not establish that every fee charged is automatically recoverable. Checked: 2026-10-16.

10. ABGB § 1497: Unterbrechung der Verjährung — RIS / Federal Chancellery of the Republic of Austria

    Acknowledgement or a court action duly pursued, subject to the statutory conditions. The distinction from a mere payment demand is an inference from those conditions; the start and duration of the limitation period for a particular claim are not specified. Checked: 2026-10-16.

11. USP / Justiz: Gläubigerinteressen im Insolvenzverfahren — Business Service Portal / Federal Ministry of Justice

    Filing insolvency claims, the time limit in the insolvency notice, the bar on court actions/enforcement and the different process for claims against the insolvency estate. This simplified description does not replace classification of a particular claim by its legal basis and when it arose. Checked: 2026-10-16.