Unpaid invoices are a silent killer of liquidity. Many companies tolerate their debtors for months for fear of "ruining the relationship," only to discover that the waiting itself cost them the most: evidence fades, the debtor strips their assets, and the claim edges toward becoming time-barred. Here is what a properly run debt collection looks like, step by step.
First: time works against you
Every claim is subject to a statute of limitations. Once the statutory period expires, the debtor can simply raise the limitation objection and the court will dismiss your claim, however undisputed the debt may be. For mutual claims arising from commercial contracts the periods are shorter than the general ones, and for certain types of claims they amount to only one year. Hence the first rule of debt collection: do not delay.
Step 1: Pre-litigation demand letter
A written demand letter with a precisely calculated debt, the interest, and a final payment deadline. Apart from the fact that some debtors pay already at this stage, the demand letter creates a clear documented trail and shows that you are serious. When it is drafted by a law firm, the effect is significantly stronger.
Step 2: Notarial payment order
When the claim is based on an authentic document (an invoice, an excerpt from the business books, a promissory note), there is no need for a classic lawsuit: a motion is filed for a decision authorizing enforcement. This is the fastest and cheapest legal route for undisputed debts. If the debtor does not object within the statutory deadline, the decision becomes an enforceable instrument.
Step 3: Court proceedings
If the debtor objects or the debt is disputed, the matter is resolved in civil litigation. Here the quality of the documentation is decisive: the contract, delivery notes, correspondence, acknowledgments of the debt. A well-prepared case significantly shortens the proceedings.
Step 4: Enforcement
With an enforceable instrument in hand, collection is carried out by an enforcement agent: from funds in bank accounts, from wages, from the debtor's movable and immovable property. Choosing the subject and the order of enforcement is a strategic decision that affects both speed and costs.
The best collection is a secured claim
Experience from more than 30,000 cases has taught us: the difference between a fast collection and a long agony is most often made when the contract is concluded, not when collection begins. A promissory note with a promissory clause, a pledge, a bank guarantee, or a retention of title turns a risky debtor into one who pays first.
Practical tips
- Invoice properly and keep proof of delivery and acceptance
- Act as soon as the delay exceeds 30 days: every month of waiting reduces collectability
- With new business partners, agree on security at the outset
- With a larger number of debtors, a systematic bulk collection delivers far better results than one-off improvisation
Have unpaid claims?
With more than 30,000 successfully handled collection cases, we have a proven system: from the demand letter to enforcement. Bring your documentation to a meeting and you will receive a clear assessment of collectability and costs.
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This text is general legal information and does not constitute legal advice for a specific case. For advice tailored to your situation, consult an attorney.