Tailcoat collector or ghost from the past? How to recover defaults effectively

60% of Spanish companies suffer some type of problem related to the non-payment of their clients, but what is even more serious, 12% of them assure that they are at risk of closing their businesses due to the delinquency that they suffer, as as can be seen from the latest Crédito y Caución and Iberinform report.

Thomas Osborne
Thomas Osborne
20 February 2023 Monday 23:26
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Tailcoat collector or ghost from the past? How to recover defaults effectively

60% of Spanish companies suffer some type of problem related to the non-payment of their clients, but what is even more serious, 12% of them assure that they are at risk of closing their businesses due to the delinquency that they suffer, as as can be seen from the latest Crédito y Caución and Iberinform report. A serious problem considering that 99% of Spanish companies are small, do not have many resources and are more affected when a client stops paying them. For this reason, recovering defaults effectively is one of the great objectives of businessmen and freelancers in our country.

The truth is that there are several ways to recover an unpaid invoice. The first thing is to look at the dates and move forward through the friendly route, since the period of time established to collect an invoice is 30 days from the date of issuance of the same. If it has not been charged, it is advisable to send a reminder in the form of a call or email to find out if everything is correct and to find out what the problem could have been.

Generally, to those 30 days, another 30 days are usually given as a courtesy. If this period of time is exceeded without having obtained a satisfactory response, since it is likely that the client has requested a period of three months or an installment payment to which the employer has agreed, then the following ways should be analyzed, before going to the court

The first ones are focused on the friendly side and that is to offer other forms of payment or a partial removal of the debt, if it is deemed appropriate. It is probable that, by offering a payment in monthly installments, the client can access and thus pay the bill. If this option is not convincing, you can also opt for the removal of part of the debt to minimize the losses caused. For example, it is probable that a part of this non-payment includes the cost of raw materials – paints, cement or plaster, if it is a construction company, for example – and to minimize the loss, the client is offered to pay for the material.

The next two steps before the judicial process already abandon that friendlier facet. The first of these is threatening the client with their inclusion in a delinquent file and the problems that this generates. Entering a list of this type means that access to financing or aid and subsidies may be restricted. While the second is to have the services of a debt collection company. These companies have the experience and the appropriate tools to pressure the client with the payment of the debt. A style of collector of the tailcoat, which still exists, but with other methods more typical of our time.

If none of these alternatives has taken effect for the client to pay the debt, there is always the judicial route. For this, a monitoring process must be initiated. This process stands out for its speed, since it allows the debtor to be seized within a period of 20 days if he opposes or does not answer the claims made by the person affected by the non-payment. In addition, it is not necessary that there be a minimum amount to start this legal process – there is a maximum of 25,000 euros – and it is not necessary to have a lawyer or attorney for its initial presentation.

Ultimately, if the amount exceeds those 25,000 euros, or if it is not possible to collect the debt with the order for payment process, then the filing of a legal claim remains. In this case, it is necessary to have the services of a lawyer to start the process, which is especially advisable when the defaulter has no intention of paying their debts.

Thus, there are several effective techniques to recover an unpaid invoice and you should start by that friendly route, always leaving a record of it in writing and with supporting documents signed by both parties so that, in the event that the client does not pay, you can provide future evidence in court.