How can debt be recovered without a Client being lost?

Rapid activity is the basis of success. In the recovery of exactable debts time plays a decisive role – the faster we remind the client of the overdue payment, the greater the odds that the amount due is repaid without the need to undertake specialist legal activities.

When a contracting party is behind with payments, the first step taken by the creditor should be an attempt at the amicable settlement of the dispute, allowing avoidance of the need to incur additional costs and undertake judicial activities.
We should remember to secure our liability before claims pass the expiration date.

The first step – prevention and monitoring of amounts due:

At many firms even short delays of several days in payment may cause serious payment gridlock. Telephone contact with the contracting party should take place before the payment deadline passes (2-3 days in advance). We offer the cheapest effective method of prevention – the ICG collecting agency stamp. ICG clients receive a stamp for use free of charge over a 12-month period.

The second step – a call for payment:

Once the payment deadline indicated on the invoice has passed, the first reminder should be sent to the client. On the call should be the number and date of the invoice and the amount due. We also suggest designating a specific deadline by which the payment should be settled, e.g. seven days from the date on which the document is received. The call for payment should contain the information that a lack of repayment of the debt will result in additional consequences, e.g. referral of the case for debt recovery, the undertaking of judicial proceedings and additional costs being charged to the debtor – interest and the costs of judicial proceedings. The call for payment should be sent as a registered letter.

The third step – out-of-court recovery:

In a situation in which the debtor does not respond to reminders for the repayment of overdue amounts we suggest engaging a professional debt recovery firm as rapidly as possible.
Initial debt recovery proceedings are usually ‘soft’ amicable negotiations, which, while guaranteeing the retention of positive relations with the contracting party, contribute to the maintenance of financial flows at the creditor.
Remuneration for debt recovery conducted by ICG is commission paid in the event that enforcement of the debt is effective – payment of remuneration occurs therefore with a specific result achieved through the work of the debt recovery firm.
In selecting a debt recovery firm it is not always worthwhile being guided solely by commission rates – it may transpire that a seemingly low commission could result from a lack of clients and efficacy in activity or the concealment of these costs in other activities.

The fourth step – securing claims:

In the event that debt recovery activities based on arbitration bring no result it is worth securing the amounts which you are due (e.g. by not allowing the statute of limitations to take effect) through the referral of a claim to the court or the conclusion of an agreement.

If you are not fluent in the binding legal procedures and formal requirements, we suggest transferring the burden linked with the preparation of claim and documentation and the supervision of the whole of the proceedings to a specialised debt recovery firm. Why not to a Law Office? First check the terms for settlement of costs associated with proceedings.

REMEMBER: Adjudged costs and interest together with the main amount due are subject to reimbursement by the debtor, in the event of effective enforcement.

In both Polish and foreign cases all formalities linked with the conduct of judicial or enforcement proceedings are carried out by ICG lawyers, with the client only informed systematically on progress on the case.