Debt – how should the company collect it? - Debts - how a company should collect them?

Debt in a company can be quite a challenge for many managers! In today’s article we will deal with the subject of why some companies have to undertake the collection of their debts. What can be done to prevent it? If I already have to collect receivables, how to do it effectively and legally? Answers to these questions can be found in this post!

Selection of customers – debtors and debtors

First of all, it is best not to lead to a situation where you do not have to pursue your customers due to lack of payment! For this purpose, we recommend to choose carefully the contractors and customers. In our opinion, it is really worth to resign from a customer from time to time, which seems suspicious or his profile indicates the risk of non-payment. The best customers are those who pay. It is not an art to sell something and then not get money for it!

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Debt – Recovery process

First of all, we suggest you call the customer and inform him about any outstanding payments. There is no point in being nervous at this point because in many cases it is a misunderstanding. Sometimes a single phone call is enough to deal with the matter. Usually the customer was not even aware that something had not been paid. He did not know the invoice was issued.

A call for payment for debts

If your call was unsuccessful and your next call was unsuccessful…. it is high time to think about starting the debt collection process. The basis of the debt recovery process is sending a correct payment order to the customer. The call specifies the amount of the call (also in words – the verbal value has priority over the digital value), the creditor (the person demands money) and the debtor (the person who owes the money). This is the beginning of the process.

The address to which the summons is sent is the company’s address. This is the address at which the business activity is registered. Usually the seat of the company or the seat of a person running a sole proprietorship. Once we send a correctly delivered request for payment we can continue our activities. It has to made in the time limit specified by law. Remember!!!! A demand for payment may be issued only in respect of receivables that are due. If the debt is still undue, the order for payment is ineffective. This means it cannot be used as a basis for further action!

Two types of lawsuits

The first step is to determine whether the parties to the statement of claim are entrepreneurs or not. Additionally whether the disputed value is less than PLN 10,000. If so, you may file a simplified claim. If not, you must file an ordinary statement of claim.

Simplified claim

It shall be submitted on a form and the procedure shall be based on a simplified form. In this case, the court shall hear the case after the parties have been summoned and shall give its decision as soon as possible. If the defendant does not appear to raise counter-orders, the case will normally be heard in favour of the claimant.

An ordinary claim

In the standard mode, the lawsuit is not unique in any respect. Your lawyer can handle it without any problems and you will have the opportunity to prove your case before the court. If you win the case, you will receive a court order for payment.

Debt – Legitimate order for payment

The document indicated in the title of this paragraph constitutes the basis for commencing the activities of a judicial officer. Based on this document, a judicial officer may seize bank accounts and collect movable and immovable property for legally confirmed debts. The subject of debt collection are all kinds of debtor’s assets.

Let us hope that you will use the advice contained in this article as rarely as possible. For this reason we wish you good luck and solid income in your company!

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