How to recover debts, i.e. debt collection for beginners
Problems with recovering receivables most often appear in small businesses. This is due to the fact that large enterprises have professional debt collection departments and procedures - this allows for a quick response to delayed payments. However, this does not mean that smaller entrepreneurs are helpless - they can reduce the arrears problem and also prevent negative consequences. It is important to think about the contractor's solvency from the very beginning of the cooperation. Read how to recover debts from a defaulting contractor.
Take action before a problem arises
It is always better to prevent than to cure - also in cooperation with contractors. By checking the company in debtors' registers, the entrepreneur can prevent delayed or unpaid payments. When a controlled company is on the register, there is a high probability of unreliable and untimely payment for goods or services. Therefore, at this point it is good to consider whether it is really worth it.
A preventive seal is another way to minimize the risk. Thanks to the cooperation with a law firm or a debt collection company, the entrepreneur obtains additional protection. Namely, all invoices contain information that if the payment is not made, it will be necessary to take steps by specialists. Such a provision may motivate at least some of the contractors to pay the entrepreneur's invoices in the first place.
Another tool that helps to avoid late payments belongs to the entrepreneur himself. It is a question of carefully controlling payment deadlines so that in the event of a delay it is possible to be reminded immediately. A good idea is also a system under which the contractor cannot place further orders until he pays his arrears.
Not always to court
Using the services of a debt collection company can significantly help an entrepreneur in recovering debts, especially before deciding to go to court. A demand for payment issued by a lawyer from a professional debt collection company is perceived quite differently from the same demand issued by a creditor.
A debt collection company is not a guarantee of immediate debt recovery, but most often it significantly facilitates the settlement process. In dealing with such a company, debtors are usually more obligated to cooperate. Often it can be beneficial for both parties - lead to a settlement or to establish a new payment schedule.
When legal action becomes a necessity
Even in a situation where the procedures of the debt collection company fail to avoid legal action, it may still support the entrepreneur. The pre-trial request for payment created by her with a proposal for a settlement gives another chance to avoid the trial.
Even if such a letter is unsuccessful, it becomes necessary to draw up a statement of claim. Also in this situation, the entrepreneur has the choice of working independently or cooperating with professionals. In a court proceeding, a case that ends in the creditor's will will require an application to the court to issue an enforcement clause to the judgment.
It is worth noting that the help of lawyers may be manifested in one more aspect, namely in the pursuit of securing the debtor's assets. Such action means that the debtor cannot manage the property, so he cannot hide or transfer resources to others.
How to recover debts after passing the judgment?
If the debtor's assets have not been secured during the proceedings, it will be necessary to identify them at the enforcement stage. In this case, you can turn to both the bailiff and the debt collection company - both entities can cooperate with each other.
When the execution fails
Even when the entrepreneur and debt collection specialists take the necessary steps to recover the debt, it may turn out that the debt cannot be recovered. In such a situation, you may decide to go to court to enter the debtor into the national court register of insolvent debtors. Commercial law companies also have the option to bring a case against the president or members of the management board - this action may lead to the repayment of the debt from the private property of debtors.
An alternative solution is the sale of receivables. Most often, however, such an option is only possible when the buyer sees an opportunity to recover the receivables.
“Experience, information flow and speed of action are very important in the debt collection process. It is worth choosing modern debt collection companies that are up to date with frequently changing regulations, ”says the director of Ancora-Finanse. "You should also pay attention to inquisitiveness in obtaining information, because during further activities, any information about the debtor may be useful".