Manage your unpaid debts with Commercial Debt Collection

Debt collection is the action a creditor takes to compel a debtor to settle their debt.

Your debts can be recovered amicably, following the dispatch of a formal notice, or through a legal recovery procedure, where the creditor resorts to legal measures to secure the owed amount.

The initial step is to remind your client about the due dates and send reminders concerning unpaid invoices. In the event of non-response, you can send a formal notice to pay. Within this notice, it's crucial to clearly communicate that you are prepared to start legal proceedings (ideally by registered mail with acknowledgment of receipt) if the invoices remain unpaid beyond the deadline you specify, with additional penalties for late payment.
If, despite these measures, your invoice remains unpaid, legal options, such as pursuing a court order, may be considered.

Whereas an amicable process aims to encourage your client to settle an invoice voluntarily, legal recourse compels them to comply. You can pursue various procedures, including:

• Obtaining a court order for payment is typically straightforward. This judicial remedy is most applicable to small claims in cases where the debtor does not contest the invoice. In such situations, you can enlist a bailiff to take action to recover the outstanding invoices.
• Summary procedure: you are required to prove that the invoice is actually pending payment to use this procedure.
• Summons for payment: This method, leading to a trial, is more costly and time-consuming but is better suited for larger companies and more significant disputes.

Late or non-payment can result in reduced liquidity within your cash flow: this can hamper your ability to grow or cause cash-flow issues that impact your company's long-term viability.

Dedicating time and effort to chase down payments from customers can divert your attention away from future contracts and business expansion. By entrusting Coface with your business debt collection, you can swiftly recover your outstanding invoices, allowing you to focus on future growth without distractions.

Coface's debt collection professionals leverage our exclusive tools and data to assess your debtor's true financial situation, contrasting it with the information provided by the debtor. 

Our experts can also analyze your debtor's financial condition, helping you understand the causes of delayed payments.  You benefit from a single point of contact who will call on our top experts to negotiate amicably or take the necessary legal steps to ensure you obtain payment – irrespective of where your debtor is based. With Coface’s international debt collection service, you recover your money quickly and  pay a commission if we’re successful.

To ensure your company stays in good health, the process for collecting unpaid invoices mustn't exceed the limitation period. When this is the case, legal redress might end up being impossible.

For business debtors (i.e., not individuals), the limitation period for receivables is 5 years. As debts age, the likelihood of a successful debt collection diminishes. To maximize your chances of success, reach out to our experts: they know the most effective ways to recover your unpaid invoices quickly so you can maintain good business relations with your client.

Several procedures are available, and you can find detailed explanations on this page. Nevertheless, extending the payment period and any delay in involving a debt collection agency may ultimately result in the inability to recover your funds.