A key factor in security at a business is the financial flow through the enterprise. Necessary for this is the appropriate management of its liabilities.
The simplest solutions are sometimes the most effective. To avoid dishonest contracting parties and overdue amounts (payment gridlock) remember the following points.
Proper documentation is a fundamental tool in the battle with unreliable partners. Remember to collect all documents confirming the performance of a service or completion of a sale, including orders / offers, contracts, invoices and documents confirming the issue of goods or performance of a service (dispatch notes, CMR notes and the like).
Despite the fact that current articles of law do not require a contracting party to place a signature on an invoice, we suggest that this document is approved (signed) by the contracting party each time. This constitutes approval of price and confirmation of the conclusion of an agreement, and in the event of an overdue payment allows in turn the rapid and efficient recovery of your money.
In the event of a foreign sale remember to conclude a written agreement, describing the rights and responsibilities of the parties and the price for the performance of the agreement. Always pay attention to whether or not the agreement has been signed by a person authorised to do so.
IMPORTANT: In some countries the lack of a contract decidedly reduces the chances for assertion of claims by a legal route, and a client may even be suspected of an attempt at obtaining money under false pretences. For example, in the countries of the Russian Federation the contract is the fundamental document confirming the conclusion of a transaction and obligations.
The most reliable tool allowing a client check are economic reports, with these worth investing in, especially when concluding an agreement with a new partner for a substantial sum. The report usually presents the register information for the company, its current financial and material situation, economic links and the like. Investigation of material situation is also possible on the basis of local intelligence, which often ensures the provision of information unavailable officially.
If a contracting party delays with payment of amounts due to you, debt recovery proceedings should be undertaken as rapidly as possible. Time plays a decisive role here – the faster we remind the client of the overdue payment, the greater the odds that this is repaid without the need to undertake specialist legal activities.
Remember that every claim falls under the statute of limitations. In each country the period for this is different, and it is sometimes very short, e.g. a single year in transport services. By allowing this to pass you decidedly limit the opportunity for recovery of an amount due.
For the purpose of avoiding problems with unreliable contracting parties we invite you to make use of our long-standing experience in debt recovery and legal services. We will gladly suggest the manner in which an appropriate agreement with a contracting party may be prepared, how the credibility of the party may be checked, how payment gridlock may be avoided and, most importantly, how your money may be recovered.