Extrajudicial debt recovery

Debt collection is one of the most annoying and undesirable parts of a business. However, because it is a necessary part of business, it is necessary to make such a process as efficient as possible. As it is a complex process, the most efficient and cheapest solution is to work with experts who specialize in this industry and know how to obtain your funds as quickly as possible. The importance of the knowledge that these professionals have is that they are able to reduce the recovery period of your claims by months and sometimes years, especially because they can force debtors to meet their obligations before litigation begins, and thus ensure out-of-court recovery.

Our company provides a comprehensive debt collection service, while we also specialize in out-of-court debt collection, thus saving time spent in court proceedings as well as funds to debtors. Saving finances for debtors is an important part of maintaining good relations between the debtor and our clients. The creation of receivables is a common part of business, as well as their recovery.  For this reason, it is necessary to assume that the emergence of such claims may be repeated in the future for the same debtors. The recurring nature of receivables is the reason for the existence of a human approach because you do not want to lose good relations with your client and also want to retain the client. In other words, it is essential that the debtor feels grateful that we received less from them than we could and that they remember this fact in future cooperation with our clients.

Prosecuting a debtor without seeking to obtain an out-of-court recovery of claims evokes a feeling of resentment among the debtors which in turn results in a reluctance to be of any assistance in fulfilling their obligations. Extrajudicial debt recovery consists of several steps. The first step is, of course, establishing contact where we discuss with the debtor the existence of their obligations, their financial capabilities, circumstances that led to the default in paying back their debts, and an agreement on the repayment of these obligations. However, we leave nothing to chance and even before such a first contact, we find out the debtor’s payment options, assets, the existence of litigation, executions, as well as other information that will help us to get an overall picture of the debtor and especially to prevent misleading forgiving conditions that are below the debtor’s options.

The second step in out-of-court recovery is to acquaint the debtor with the total costs that may be incurred in recovery in court proceedings. It is important to note here that information on cost increases alone is generally not enough for debtors as they see it as empty words or empty threats, without realizing that the costs of proceedings may in some cases exceed their debt. This situation occurs, especially with our larger clients who have a larger number of customers but where smaller receivables arise, such as telecommunications. The average amount recovered in this sector is somewhere at the level of 70 Eur while debtors often think that because of such an amount, no one will start legal proceedings. It is here that one route to court proceedings can be calculated at 400 Eur in accordance with valid legal regulations. The debtors are not aware of this, therefore, it is necessary to inform them of this fact, which our company does with references to the precise provisions and calculations that determine such costs of proceedings.

In order to retain customers, we do not always recommend applying a tough approach that makes life very difficult for debtors; we first try out-of-court recovery of receivables using a human approach. Try to ask yourself if you would ever cooperate or buy from a trader who took away 1000 Eur from you just for 70 Eur and made your living conditions significantly more difficult, or with one who understood your current and difficult situation and helped you to balance it. Of course, we understand that some debtors take advantage of such situations and try to deceive us, but that is why we are aware of their financial capabilities before the first contact and if we find that the debtor is deceiving or misleading us, we will take legal action. Whether we choose the option of extrajudicial debt recovery or initiate legal proceedings, we will not allow individual claims to be time-barred.

Extrajudicial debt recovery is a complex process and it is important to know as much information as possible about the debtor. Our company provides you with this comprehensive process and if your receivables are not recovered, we have no reward, which can serve as sufficient proof of our motivation to recover such receivables, because the more we get for you, the more we get too.