Bad debts collection

Despite numerous reminders, friendly letters sent plus a formal notice, your client does not pay and has obviously no intention to do so.

It is necessary to move up a gear to force your client to meet its commitments.

To do so, several solutions are available depending on your internal organization and the resources you have.

Collection of overdue customers. What to do?

You want to delegate the management of litigation that is not your job and you prefer to leave this operation to professionals:

Establish a partnership with a collection agency which will take in hand the collection of your unpaid bills by making a new friendly recovery action followed by a legal action if necessary.
You start yourself a legal proceeding against your client. Choose the most suitable for your case:
- The European Order for Payment (EOP) for litigations inside Europe.
- The longest but safest if it is clear that you're in your right and if you know that your debtor will go to the court to contest the case: the summons to pay.
- The fastest: the emergency interim proceedings which can be very fast in several countries (few months).
You subscribed to a classical credit insurance and you got a guarantee on your client:
- Declare your claim to your credit insurance in order to be indemnified according to your contract.

The management of outstanding invoices is linked to the size and the strategy of your collection. Friendly collection is usually done internaly but collection becomes more complex when only a legal action can resolve the dispute. That's why it is often better to request the help of an external company specialized in such matters.

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