Debt collection – assignment of receivables, legal services
Problems with financial liquidity of companies usually start the same. From invoices not paid on time to customers. At first, small delays become larger over time, leading to financial congestion in companies that have never had a problem with it. At such times, you must act immediately, not allowing the situation to start to deteriorate rapidly. The sooner you respond to customer delays, the sooner you can solve the problem. Debt collection is one of the most effective tools that can discipline unreliable contractors.
What is debt collection?
Debt collection is an amicable attempt to recover a debt by using various tools and contact attempts. Debt collection can be carried out within your company by an employee designated for this purpose, as well as can be outsourced to companies that only deal with this and have extensive experience and skills in this activity. International debt collection can be particularly difficult to implement. Why? Because it requires communication with debtors in a foreign language, and may also require prior determination of their whereabouts. It all takes a long time, causing some companies to simply give up their debt, preferring to focus on new assignments. They forget that the payment due to them can be recovered in a completely different way – using the services of specialized consultancy companies that will handle it for some percentage of the debt. We want to present such a service, encouraging you to learn more about it and take advantage of one of the several offers presented.
How to place a recovery order?
Who is this offer addressed to? To all companies that have one, several or much more unpaid invoices issued to their clients. Regardless of whether the client is Polish or foreign, there are legal mechanisms to increase the chance of debt recovery. Sometimes recovery can be time consuming, due to the fact that many facts need to be established. However, you should not give up, because there is always a reward in the form of a recovered debt, often increased by very high penalty interest, at the end of this path. Do you take the challenge of recovering the money you owe yourself? If so, you will need to complete all documents related to your debtor or debtors.
What should you prepare? If there are completed orders, correspondence, copies of invoices, confirmation of sending by post or electronically and all other documents that were generated on the way to amicable debt recovery. These may be legal requests for payment, as well as electronic messages urging you to pay your debts. Each of these documents may prove to be very valuable evidence on the way to court debt recovery. At the beginning, however, it will allow debt collectors to learn more about the specifics of the problem and prepare a list of arguments that are to convince the debtor to fulfill his financial obligations of his own free will.
In order for the debt collection company to proceed with the work, it is necessary to sign a contract with it. The order will include all the most important information regarding debt, as well as costs and remuneration for debt collectors. If the debt is not recovered, the customer usually does not pay a zloty. However, if the recovery is successful, the remuneration will constitute a certain percentage of the amount recovered. On average, it is from 10 to even 50 percent, depending on the size of the debt, difficulties related to its recovery and other conditions that were individually concluded with the client.
What if the recovery lasts too long?
Sometimes there are situations that recovery can take too long and the creditor is able to settle for only part of the debt, leaving the rest to someone else who will deal with its recovery. This is a very common practice, used for difficult debts, which can take a long time to recover. However, there are many companies on the market that are willing to buy them back. It is professionally called assignment of receivables and it is a good way to quickly recover at least part of the sum and be able to continue to prosper. The rest will be done by the company that agreed to buy back the debt.
What resale percentage can you expect if the debt assignment will take place?
This is also an issue agreed with the debt collection company. Sometimes it’s 50 percent, sometimes less, and sometimes more. Sometimes debtors are well known to debt collection companies and they specifically collect more unpaid invoices to recover debt at one time. This approach is often impossible for individual creditors, and the sale of debt allows them to recover at least some of the debt, enabling them to continue operating on the market.
Is the assignment of receivables admissible by law?
Yes of course. And the debtor has nothing to decide in this case. The creditor himself determines to whom and under what conditions he wants to sell the debt, with this reservation it does not give the new creditor any rights to increase this debt by nothing more than statutory interest. If you have such debts in your company, it is worth thinking now about how to recover them effectively. The ranking we present on our pages can certainly be helpful. It allows you to find out the exact conditions under which debt collection companies operate, and what types of debt they are interested in.
Not every debt collection company wants to buy every debt. Some of them may avoid debts generated in various industries, such as services or trade, while others will specialize only in them. Moreover, there is often also a minimum amount of unpaid invoices that such a company may be interested in. Usually it will be 1000 dollars. Therefore, having one debtor invoice for PLN 300, it is better to take care of collecting it yourself, alternatively refer the case to an e-court or refer the case to a normal court and recover your debt in bailiff proceedings.
How to protect yourself from debt – business intelligence
Sometimes you can save yourself from financial trouble by not cooperating with companies whose financial credibility is not certain. Business intelligence is one of the most interesting services offered by debt collection companies. They carry out a thorough examination of the reliability of the company with which we intend to cooperate. They analyze her past activities, check if there are any debts and look at her activities from every angle. This is to prevent the client from falling into big financial problems if he fulfills the order and there is no payment for the invoice. Economic intelligence may be conducted at the request of any company and concern its domestic or foreign contractor.
More and more companies are opting for such a service, especially when it comes to costly orders for previously unknown companies. Business intelligence depending on the situation is a time-consuming activity, so you should order it early. The data obtained in this way is presented to the client in the form of a readable report, supported by evidence that has been collected. In Poland, economic intelligence has settled in for good, not only in private companies, but also in the government sector. Ministries, as well as subordinate public administration units decide to order economic intelligence if they want to choose the winner of the tender.
This allows you to eliminate companies that act dishonestly and can offer prohibitive prices right from the very beginning. In fact, this can happen at the expense of employees who are illegally employed or by not paying their insurance premiums. If you also want to cooperate with a company that remains a mystery to you, it is worth checking it carefully. Especially if big money is to be involved. Debt collection companies will conduct business intelligence reliably and reliably, so you can avoid large financial losses, protecting the company from falling or losing its good name.
Legal assistance for any company
It can be safely said that as many companies as there are, there can be problems with their functioning. Financial and legal problems can be particularly difficult to solve. How to enforce debts, how to act effectively within the law, so that it brings results, but also that no one is accused of abusing the law? What can you do if you have a serious problem and do not know who to turn to for help? Debt collection companies also have their experience in this topic. The legal services they offer can be provided on a subscription basis or on a one-off basis.
Who would like this offer the most? Certainly, all those companies that often struggle with non-verbal debtors, for a long time delaying paying for invoices. Debt collection itself is quite a difficult task and requires a lot of knowledge and the ability to talk to clients. Resistance to stress, determination and knowledge on how to influence the interlocutor. Employees of professional debt collection companies deal with this every day, having a lot of skill and experience in this topic.
It is worth to cooperate with them, even if it is to be service and paid help. The time saved thanks to this can be used in your company for completely different, more constructive activities, thanks to which debts will no longer be such a serious threat to the existence of your company. We encourage you to read the prepared ranking of debt collection companies. It has been carefully prepared based on publicly available information obtained from the internet and verified directly in the companies we present here. Establishing cooperation with them may be the first step to get rid of your difficult debts.