Collection of Bad Debts

When economy goes through tough times, the importance of monitoring your list of debtors closely and ensuring it does not increase becomes evident. Delayed and outstanding payments not only mean loss for your company but they may also affect management and the bottom line negatively.

If your client has not paid after receiving two notifications, our lawyers may deal with the collection of the unpaid invoice. This is the most effective collection way, avoiding endless notifications or requirements; we have extensively noticed that many debtors only proceed to make the payment after receiving a letter from a lawyer specialised in collection. Along the collection process, we observe progress closely and we take responsibility for your rapid collection of the payment once it has been made. Should your client payment still delay, our lawyers may directly access all legal means to obtain it.

However, sometimes we find that entrepreneurs are afraid of losing their client as a result of our direct collection method. It may clearly entail a serious problem when the client involved is an important client and the entrepreneur depends on it. Thus, if you wish so, we can opt for a friendly process aimed at debt repayment, or a payment scheme, preserving the relation with the client. In this way, a payment requirement is sent after the second notification. At this stage, we can send invoices and demands for payment using your company letterhead paper. This will strengthen your position if you reach the court stage, since it may be used as evidence that you have done your best to bind the client to fulfil the payment. The following step is to declare default. The debtor is warned that upon failure to effect payment, a collection process will be initiated, the cost of which will be naturally borne by the client. This last stage usually takes some weeks, while the immediate collection may be completed in 2 or 3 days.

In general, however, a successful collection follows this principle: The sooner, the better.
After all, if you take another position, the debtor will continue delaying payment.

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