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Debt collection in Germany

Professional debt collection in Germany, conducted by local experts

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debt collection in germany oddcoll

A highly efficient and helpful service

“I was trying to recover payment for a long-overdue invoice, but the debtor refused to communicate with me. After engaging Oddcoll, the debt collection process was quick and effective, and the invoice was paid within just a few weeks.

I would highly recommend this service. It saved me a great deal of time and hassle, and the online portal was intuitive and easy to use. Communication from the local debt collection team was prompt, professional and helpful throughout.“

Daniel Arnold |
Munich, Germany
Rated 9,3 out of 10 based on 111 reviews on Kiyoh!
Factor Information Source
Statute of limitations 3 years, counted from the end of calendar year § 195 BGB
Late payment interest (B2B) Base rate + 9 percentage points § 288 II BGB
Flat recovery fee (B2B) €40 per invoice EU Late Payment Directive 2011/7/EU
Automatic default (B2B) 30 days after due date § 286 III BGB — if due date stated on invoice
Mahnverfahren duration 4–6 weeks (if uncontested) §§ 688–703d ZPO
Court threshold (Amtsgericht) Claims up to €10,000 § 23 GVG
Court threshold (Landgericht) Claims above €10,000 (attorney mandatory) § 23 GVG
Authorisation requirement Mandatory — RDG register Rechtsdienstleistungsgesetz (RDG)
Currency EUR

Germany has one of Europe's most structured legal systems for commercial debt recovery. While the process is generally creditor-friendly, there are strict rules about who can collect debts, how long you have to take action and what happens if a debtor refuses to pay.
Here's what every business should know before pursuing a claim.

Who can legally collect debts in Germany?

Not every debt collection agency is authorised to operate in Germany.

All commercial debt collection is regulated by the Rechtsdienstleistungsgesetz (RDG), the German Legal Services Act. Only agencies registered with the Federal Office of Justice (Bundesamt für Justiz) are legally permitted to provide debt collection services, and the register is publicly available.

Oddcoll works exclusively with an RDG-certified local partner that is listed in the official register, ensuring every case is handled in full compliance with German law.

Statute of limitations

For most commercial debts, the standard limitation period in Germany is 3 years under § 195 BGB (German Civil Code). The clock starts at the end of the calendar year in which the claim arose. This means that, as an example, an invoice issued at any point during 2023 expires on 31 December 2026.

One important point catches many creditors out: sending reminders does NOT stop the limitation period. Only formal legal action, such as filing a Mahnverfahren or starting court proceedings, interrupts the deadline.

Note: transport-related claims are different. Under the German Commercial Code (HGB), these generally expire after one year.

Late payment interest and recovery costs

German law provides automatic rights to compensation for late payment on B2B invoices.

You may be entitled to:

  • Late payment interest at the European Central Bank (ECB) base rate plus 9 percentage points per year (§ 288 II BGB)
  • A fixed recovery fee of €40 for each overdue B2B invoice under the EU Late Payment Directive
  • Automatic default 30 days after the invoice due date (where the due date is stated), meaning no reminder is required before these rights arise (§ 286 III BGB)

Order for payment procedure (Mahnverfahren)

For undisputed debts, Germany offers a streamlined court procedure called the Mahnverfahren. Rather than going straight to a full civil trial, creditors can apply for a court-issued payment order.

The procedure is governed by §§ 688–703d ZPO and is usually much faster and less expensive than ordinary litigation.

The process works as follows:

  1. The creditor files an application with the appropriate court.
  2. The court issues a Mahnbescheid (payment order), which is served on the debtor.
  3. The debtor has 14 days to pay or file an objection (Widerspruch).
  4. If no objection is received, the creditor can obtain a Vollstreckungsbescheid (enforcement order), allowing enforcement against the debtor’s assets.

For uncontested claims, the entire process typically takes four to six weeks.

If the debtor disputes the claim, the case automatically moves into the normal civil court process (Klageverfahren).

Court structure and jurisdiction

Under § 23 GVG, the court that hears your case depends on the value of your claim:

  • Amtsgerichte (district courts) are for claims up to €10,000. These cases are generally quicker, less expensive and do not require a lawyer.
  • Landgerichte (regional courts) are for claims above €10,000. Representation by a licensed German lawyer (Rechtsanwalt) is mandatory.

Cases are normally heard where the debtor has its registered office or residence (§§ 12–17 ZPO). Foreign creditors using the Mahnverfahren submit applications through the central Mahngericht at the Local Court of Wedding in Berlin.

What happens if the debtor still doesn't pay?

Obtaining a judgment or enforcement order is only part of the process. If payment is still not made, German enforcement proceedings (Zwangsvollstreckung) allow creditors to recover the debt through compulsory measures.

Unlike in some countries, German bailiffs (Gerichtsvollzieher) are public officials appointed by the courts, so creditors cannot choose their own enforcement officer.

Depending on the circumstances, enforcement can include:

  • Bank account garnishment (Pfändung des Bankkontos)
  • Wage garnishment (Lohnpfändung), subject to protected income limits
  • Seizure of movable assets (Sachpfändung)
  • Enforcement against real estate (Immobiliarvollstreckung) for larger claims

Once an enforceable title has been obtained, these measures can be used to compel payment where voluntary settlement has failed.

How does Germany compare to other countries for commercial debt recovery?

Country Limitation period B2B late interest Fast-track procedure Typical duration*
Germany Germany 3 years (§ 195 BGB) Base rate + 9% (§ 288 II BGB) Mahnverfahren 2–4 weeks
France France 5 years (Art. L110-4 Code de commerce) Base rate + 10% (Art. L441-10) Injonction de payer 4–8 weeks
Italy Italy 10 years (Art. 2946 CC) ECB + 8% (D.Lgs. 231/2002) Decreto ingiuntivo 4–8 weeks
Spain Spain 5 years (Art. 1964.2 CC) Base rate + 8% (Ley 3/2004) Proceso monitorio 4–8 weeks
Netherlands Netherlands 5 years (Art. 3:307 BW) Base rate + 8% (Art. 6:119a BW) Betalingsbevel 2–4 weeks
Austria Austria 3 years (§ 1486 ABGB) Base rate + 9.2% (§ 456 UGB) Mahnverfahren 2–4 weeks

* Amicable phase only. Legal proceedings add 1–6 months depending on debtor response and court scheduling.

Related resources

A practical guide

What happens when a customer in Germany doesn’t pay?

Read the guide →

Debt collection in Berlin

How to recover international B2B debts effectively

→
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78%
of German B2B companies reported new payment delays in 2024
Coface Corporate Payment Survey 2024
30.8 days
is the average duration of payment delays in Germany
Coface Corporate Payment Survey 2024
32 days
is the average payment term in Germany — the shortest in Europe
Coface Corporate Payment Survey 2024
25%
of business bankruptcies in Europe are caused by late payments
EU Council
3 years
is the limitation period for commercial debt claims in Germany
§ 195 BGB
€40
is the flat recovery fee the debt collection agency is entitled to claim per overdue B2B invoice
EU Late Payment Directive 2011/7/EU

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local debt collector germany

Expert insights from our German debt collection partner

Local debt collector in Germany

Our German partner has spent more than 20 years recovering commercial debts for businesses across Germany. These are the issues they see most often and the advice they give to overseas creditors.

First contact

"German debtors are much more likely to respond to a formal written demand than to an initial phone call. A Mahnung sent on the letterhead of a German debt collection agency immediately signals that the case is being handled locally by someone who understands the legal system."

Timing

"The biggest mistake we see is creditors leaving it too late. Three years may sound like plenty of time, but it's common for cases to reach us just months before the limitation period expires. Many businesses also assume that sending reminders protects their claim, but only formal legal action stops the clock."

The Mahnverfahren

"Foreign creditors often underestimate how fast and affordable the Mahnverfahren is for uncontested claims. For straightforward B2B debts, we typically have an enforceable title within five weeks, at a fraction of the cost of a full court trial."

Cultural approach

"Persistence matters in Germany, but tone matters more. An aggressive or threatening approach often makes debtors dig in. Formal, factual communication with a clear deadline consistently produces better results."

Documentation

"The single most important thing a foreign creditor can do before contacting us is gather the appropriate paperwork. The stronger the documentation, the faster the case can usually be resolved and the less expensive it is if legal action becomes necessary."

Have questions?

Frequently asked questions about debt collection Germany

German debt collection usually starts with an out-of-court (amicable) phase. A formal demand letter is sent and the debtor is typically given a short deadline (7–14 days) to pay.
If the debtor still refuses to pay, the case can move to legal proceedings. For uncontested debts, the creditor may initiate a payment order procedure (Mahnverfahren), while disputed claims require a full civil action (Klageverfahren).

Oddcoll improves this process by working with one handpicked German debt collection experts who handle the amicable phase locally: they send the formal letter and call the debtor multiple times in German to seek payment. Because this local specialist know the culture and the law and have one of the best track records, they can often secure payment without litigation.

The timescale depends on the debtor’s response and whether the case becomes litigious. During the amicable phase, creditors usually set a short deadline for payment (often 7–14 days), so resolution can be quite rapid if the debtor cooperates. 

If the debtor doesn’t pay after the reminder the debt collection agency will continue to try to reach the debtor in order to get them to pay. This is done by phone calls, emails and letters and depending on the debtors willingness to pay. This face can continue up to 90 days.

If the matter goes to court, it will take longer. An uncontested Mahnverfahren can lead to an enforceable title within a few weeks, while a Klageverfahren (full civil action) for disputed claims may take several months or more, depending on court schedules. German court procedures are generally considered efficient compared to many other European countries.

Out-of-court cases handled by professional firms are usually based on a success fee (“no win, no fee”). Some providers charge a fixed investigation fee (for example around €185) that is paid regardless of the outcome – but this is not standardized and varies by provider.
Should legal action become necessary, fees move to a fixed or hourly basis (governed by statutory fee tables in Germany). The cost varies case by case, but you will normally receive a recommendation and a cost estimate before any legal steps are taken.

The court fee for a Mahnverfahren depends on the claim amount and may increase if enforcement by a bailiff is required. German firms usually offer transparent pricing so you can decide whether legal proceedings are worthwhile.

The standard limitation period for commercial debts in Germany is 3 years under § 195 BGB (German Civil Code). The period begins at the end of the calendar year in which the claim arose — so an invoice issued at any point during 2023 expires on 31 December 2026.

Important: sending a payment reminder or demand letter does not interrupt the limitation period. Only a formal legal step — such as filing a Mahnverfahren application or initiating a lawsuit — resets the clock. Creditors should act well before the three-year limit expires.

Note: transport-related claims follow a shorter limitation period of 1 year under the German Commercial Code (HGB).

The Mahnverfahren is a quick and cost-effective payment order procedure for uncontested claims. To begin, the creditor submits a standard application with the parties’ details, the amount owed, the due date, and the interest rate.

The court then sends the debtor a payment order (Mahnbescheid). If the debtor neither pays nor objects within two weeks, the creditor can request a formal enforcement order (Vollstreckungsbescheid).

This enforcement order allows assets to be seized if needed.

The procedure is ideal when you expect no dispute and want a fast, enforceable title. Many German agencies use Mahnverfahren as a follow-up if amicable efforts fail.

Klageverfahren refers to a regular civil court action used for disputed or complex cases. Both sides must present evidence and arguments, and the court may hold several hearings before issuing a judgment.

Jurisdiction depends on the claim amount: district courts (Amtsgericht) hear claims up to €5 000, and regional courts (Landgericht) handle larger amounts.

This route is more time-consuming and costly than Mahnverfahren but is essential when the debtor contests the debt.

Under German law, a formal warning letter (Mahnung) is generally required to put the debtor in default. (For B2B transactions, the debtor is automatically in default 30 days after the due date if the due date was stated on the invoice, but sending a formal reminder is still best practice.)

The letter should state the amount due, the reason for the debt, a deadline for payment, the interest accrued, and payment details.

Credible debt collection firms first send this letter and then follow up by phone.

Communication is conducted in German to avoid misunderstandings, and professional handling often prompts faster payment.

After the initial amicable efforts, a creditor can use European legal tools if the debtor is based in Germany. For uncontested cross-border claims, the European Order for Payment or the European Small Claims Procedure can provide an enforceable title that is valid across the EU.

However, the most effective approach is often to hand the claim to a debt collection agency or lawyer with local expertise, so you can focus on your core business.

Oddcoll operates across Europe and matches you with a handpicked local agency in each country, so you can rely on specialists familiar with national procedures.

No. German bailiffs are public servants assigned to specific courts, so you cannot pick or instruct a particular bailiff.

Once an enforcement order is obtained, the court appoints the bailiff responsible for the debtor’s area. It typically takes four to six months before you receive updates about enforcement progress.

The upside is that bailiff fees in Germany are comparatively low.

The outstanding amount and a correct invoice will contain the information needed to start the collection process.

For the Mahnverfahren, a simple application containing the creditor’s and debtor’s information, the outstanding amount, the due date, and the interest rate is sufficient.

It is good practice to keep all correspondence and documents relating to the business relationship, as they may be needed if the case goes to court.

Germany has a strong payment culture: more than half of debtors pay on time. Germany has in general high sucess rates and it is one of the easier countries in the World to Collect from (according to Oddcoll statistics).

Working with trusted local specialists increases your chances of success: they understand local business practices, speak the language, and focus on amicable solutions, which often leads to faster and higher recovery rates.

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Oddcoll helps you all the way​

How debt collection in Germany works

1. Upload your invoice

Create an account and upload your invoice via the platform, API or CSV – easily and in seconds.

2. Local experts take over

Our hand-picked partners in the Germany handle the collection with effective measures, including demand letters, calls and legal steps.

3. Get paid

Once the payment is completed, the money is sent directly to you – quickly, securely and without hassle.

Talk to a collection expert

Expert debt collection in Germany

If your business is owed money by a German company, partnering with a local debt collection agency in Germany is by far the most effective way to recover outstanding payments.

Oddcoll gives you direct access to one of Germany’s leading commercial debt collection agencies, helping you recover outstanding debts quickly, professionally and in full whenever possible.

Our experienced German debt collection specialists understand local legislation, business practices and negotiation strategies. They communicate directly with debtors in fluent German, significantly improving response rates and increasing the likelihood of successful recovery.

Whether you’re collecting a single unpaid invoice or managing multiple overdue accounts, Oddcoll makes debt collection in Germany simple, transparent and effective.

B2B debt collection services across Germany

Navigating Germany’s financial and legal landscape requires local expertise. That’s why every German claim submitted through Oddcoll is managed by our handpicked specialists based in Germany. They know how to approach negotiations, when to escalate matters and how to achieve the best possible outcome while protecting your commercial relationships.

With our service, you benefit from:

  • Local knowledge and legal expertise
  • Communication in fluent German
  • Transparent online case tracking
  • A professional approach that protects your reputation
  • Faster, more effective recovery of commercial debts

Whether your debtor is in one of the big business centres such as Berlin, Frankfurt, Munich, Hamburg, or elsewhere, our dedicated team ensures a smooth and transparent debt recovery process.

Why businesses choose Oddcoll

Oddcoll specialises in international debt collection for businesses that sell across borders. Our network comprises handpicked debt collection agencies and law firms worldwide, ensuring each case is managed by local professionals familiar with the relevant laws and procedures.

When you choose Oddcoll for debt collection in Germany, you benefit from:

  • Specialist expertise in commercial debt collection (we do not handle consumer debt)
  • A trusted local partner with a proven track record of delivering strong recovery rates
  • Complete transparency through our secure online case management platform
  • Cross-border support from offices in Germany, Austria and Switzerland, providing seamless debt collection services across the DACH region

How Oddcoll helps B2B companies get paid

Recovering unpaid debts from German customers can be challenging, but our local experts make it straightforward.

Here’s how debt collection in Germany works:

  1. Upload your claim on our platform.
  2. Our German partner immediately starts the recovery process.
  3. Your claim is treated as a local case in Germany, maximising efficiency and results.
  4. You can monitor progress online while we work to secure payment.

Start your claim today

Every day an invoice remains unpaid reduces the likelihood of recovering the full amount. Taking action early with experienced local specialists gives your business the strongest chance of success.

Need assistance with debt recovery in Germany? Contact our team today to discuss your case, or upload your claim now and let our experts handle the rest.

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