Debt Collection in the Netherlands
Do you have an outstanding invoice with a Dutch company? It is often thought that collecting abroad is a lot more difficult than when your customer is in the United Kingdom. Some companies even choose to write off their invoices to avoid the assumed complexity of collecting abroad. Yet this is absolutely unnecessary because collecting in the Netherlands is a lot easier than in the United Kingdom. With the help of our Dutch collection specialists you will soon have the outstanding invoice amount in your account. Below are the main reasons collection in the Netherlands is so much easier than in the United Kingdom.
1. High payment morality
In general, most Dutch companies pay their invoices on time. With an average DSO of 53 days, the Netherlands is one of the best paying countries in the world. The fact that your debtor has not paid the outstanding invoice on time does not mean that it is better to write it off. With a high payment morality within most Dutch companies, there is a good chance that your invoice will still be paid once you start a collection procedure. Our office resolves 95% of debt collection cases with Dutch companies in the pre-legal phase.
2. Effective debt collection methods in the Netherlands
Has there been no response to the reminders that have been sent? Then we can simply apply for the bankruptcy of your debtor! For many this may seem a bit strange if a debtor doesn’t pay their invoices, but in the Netherlands, it is quite normal: to file for bankruptcy with a debtor at the court. This procedure is a very effective means of pressure; after all, debtors do not want to run the risk of their company being declared bankrupt, and therefore pay. In addition, it is a very fast procedure. A hearing takes place within 3 weeks, during which the Dutch court decides whether the debtor is declared bankrupt. The bankruptcy application is therefore the Netherlands' most used and most effective means of collection.
3. Faster procedures
Is your claim under dispute? Then a summons proceeding must be started. In this case, bankruptcy proceedings are not possible. But even with a summons procedure you often have your money relatively quickly. In general, the legal proceedings in the Netherlands takes considerably less time than in the United Kingdom. In comparison to the UK, you will receive a court judgment earlier and therefore the outstanding amount will be paid into your account more quickly. Moreover, our Dutch lawyers are allowed to litigate throughout the Netherlands. Whether your customer is in Rotterdam, Utrecht, Groningen or Eindhoven, we can always assist you from our office in Amsterdam.
4. Collect more than just the invoice amount
Collecting in the Netherlands is not only a lot easier, but also more advantageous. Under Dutch law you can charge interest and costs to the debtor. Even if this was not agreed upon with your customer in your contract, it’s not a problem. Collecting interest and costs is regulated by law. This also applies to you as an English creditor. So, you get more than just the original invoice amount.
5. Specialised in debt collection in the Netherlands
Because of the reasons outlined above, collecting in the Netherlands is therefore relatively easy compared to the United Kingdom. It is important however, that you engage a collection specialist who is aware of the legislation and collection methods in the Netherlands. We are experts in the field of business debt collection in the Netherlands since 1952. Our Dutch collection specialists and lawyers who work at our firm help you with your collection cases. If you transfer your case today, we will immediately start working on it.
Would you like more information about collection in the Netherlands? Then please contact us. Our collection specialists are happy to talk to you and always give you honest and clear advice about your collection case.