A little compromise can go a long way
When a customer refuses to pay an invoice, the first step you can take is to contact your debtor yourself. But once your debtor still refuses to pay, and even stops responding, you might need to consider stepping it up. This is exactly what happened to our Polish client with a German debtor.
A Polish client delivered goods to its German customer that amounted to more than € 80.000,-. When our Polish customer sent the German debtor the invoice, it soon became clear that recovering the total amount would not be as simple.
Although the Polish creditor was able to contact the debtor, it soon became clear that the customer was unable to pay the invoice. Due to financial problems, the German debtor could not see any possibility to pay the amount. Both parties were unable to reach a settlement and decided to involve a third party.
After our experts performed a credit check and investigated the debtor's situation, it became clear that the debtor indeed was unable to pay the entire claim. That is when we suggested creating a new payment plan. This new payment plan included the interest and collection costs as well. We convinced the debtor to submit a notarial acknowledgement of the debt with immediate power of enforcement in case the payment plan was not followed. While this meant that our client would have to wait a little longer for the payment, the Polish creditor was guaranteed the payment with an acknowledgement of the claim in case the debtor did not comply with the payment plan.
This action secured the client’s full claim against any future dispute. Moreover, there was no need for any legal action, as our client was also secured in the event the debtor didn’t follow the payment plan. With this solution, both parties avoided significant litigation costs and imminent insolvency of the debtor. After 6 months the debtor's financial situation stabilised, and the debt was paid off even sooner than expected.
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Litigation does not always have to be the solution. Our experts always solve the case according to the strategy that suits your case the best. With our debt collection lawyers at both our Polish and German Desk, we have the resources to recover your claim amicably. Has your debtor left you in a similar position? This case study is one of the thousands of cases that we can solve on your behalf. If you would like to know more about what we can do for you, contact us today for your free consultation.