Charging the debtor with the costs of debt collection in commercial transactions - what are your rights?

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Once again, your contractor has failed to pay or always pays late, and your company suffers from payment bottlenecks? The solution to this problem is to charge the debtor with the costs of debt collection. Take advantage of professional payment monitoring and introduce professional debt collection to your company. Read what you can do with contractors with overdue invoices.

How is the debtor charged with the costs of debt collection?

Conducting debt collection, the costs of which will be borne by the debtor, is a good method to discipline contractors who pay late or avoid paying liabilities for a long time. Pursuant to the act on payment deadlines in commercial transactions, in the event of exceeding the payment deadline, the creditor who undertook debt collection activities (e.g. called, wrote e-mails, sent reminders and summons), the debtor is entitled to an amount of EUR 40 (lump sum), which is a compensation for recovery costs.
This act applies to:

  • entrepreneurs within the meaning of art. 4 of the Freedom of Economic Activity Act,
  • entities conducting activities referred to in art. 3 of the Freedom of Economic Activity Act,
  • entities referred to in Art. 3 sec. 1 of the Public Procurement Law,
  • freelancers,
  • branches and representative offices of foreign entrepreneurs,
  • foreign entrepreneurs referred to in art. 1 of the Act of on the rules of conducting economic activity on the territory of the Polish People's Republic "in the field of small-scale production by foreign legal entities", running their companies in Poland,
  • entrepreneurs from European Union member states, European Free Trade Association (EFTA) states, "parties to the agreement on the European Economic Area or the Swiss Confederation".

Charging the debtor with the costs of collection - the cost of incurred debts

Charging the debtor with the costs of debt collection is also the reimbursement of the debt recovery costs due to the debtor, which exceed this amount (over EUR 40), e.g. when the creditor had to use the services of a law firm or a debt collection company. The costs incurred in this way must be documented and their amount must be justified. However, they should be distinguished from court costs and court representation - these costs are independent of each other and arise as a result of referring debt collection to bailiff or court proceedings.

The best solution that should effectively teach your contractors to pay invoices at a specified time is to conduct ongoing and effective debt collection, which allows at an early stage to quickly identify the contractor's payment difficulties, and thus take the right steps. Such monitoring of payments will mean that it will not be profitable for them to delay the settlement of receivables - charging the debtor with debt collection costs in the amount of EUR 40 for each late invoice.

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