Receivables Management - Lawyer

Receivables management

Generating a steady cash-flow is the “central nervous system” for any business. Managing an open accounts receivable is major for any companies, however it tend to lean towards being troublesome to manage and a real (financial) burden, if not in some cases, it is a real financial problem.

In fact, it does not even matter whether "only" a very large debt remains unpaid or a massive number of small valued amounts are outstanding. Consequent to the (additional) workload that open accounts receivable can often cause, late payments in both cases can turn into real financial difficulties, in worst case scenario, it can lead large companies to totter.

For this reason, it makes sense for many companies to establish a clearly defined out-of-court dunning procedure within its company and, if necessary, in cooperation with a law firm, as well as processes on how outstanding claims can ultimately be enforced in court with the help of a law firm and, if necessary, compulsorily enforced.

Professional dunning procedures for companies

Installation of the process in a company consisting departments involved:

  • Determine, define dunning processes in the company
  • Specification of corresponding dunning letters depending on the dunning level
  • Sufficient leeway in the dunning process for individual cases / exceptions
  • Define documentation for dunning process
  • Transfer to a law firm for judicial dunning proceedings or legal proceedings

Do you want to put your company's receivables management on a solid footing in cooperation with a law firm and finally make it efficient?


Debt recovery in concrete terms

Regardless of whether we define and install an individual dunning procedure or receivables management in your company, our professional team are capable to handle receivables management or legal debt collection in all instances for every company from ground "A to Z".

Services we provide in this context includes:

  • Preliminary examination of the claim
  • Writing to debtors - individually or within the framework of the established procedures with a client; obtaining debtor contact details if necessary
  • If necessary, out-of-court settlement, e.g. in the form of an instalment payment agreement.
  • If no out-of-court settlement, credit check to avoid unnecessary use / costs
  • Initiation of judicial dunning proceedings - if necessary, waiver if futile
  • Bringing an action for payment of the outstanding debt
  • Initiation of compulsory enforcement measures if enforceable title (legally binding order to pay, court judgment) - garnishment of property, garnishment of accounts, registration of compulsory mortgage, etc.
  • Monitoring of solvency in the case of acutely insolvent debtors (title enforceable for 30 years!)
  • Filing criminal charges in cases of suspected fraud, etc.

Which services we provide in a specific case depends on case to case basis. For example, a judicial dunning procedure may make sense in one case, however it may only lead to a loss of time for the other. As a result, it can be concluded as pointless if the judicial dunning procedure is obviously inadequate.

How we appear to a debtor also depends on the specifics of a case: a more or less binding approach may make sense in cases involving large claims against a long-standing business partner. On the other hand, in cases involving smaller or "impersonal" claims, a certain but serious approach may be appropriate. As we act for the best interest of our clients, we certainly discuss with you in advance on how we will appear on your behalf - for the individual case or for certain recurring situations.

Do you need reliable, professional and serious support in debt collection?


Collection agency vs. lawyer collection

When it comes to debt management or debt collection, lawyers are in competition with debt collection agencies. But what is the difference between a debt collection lawyer and a debt collection agency? What are the advantages of a “so-called” lawyer debt collector?

Often not all but some debt collection agencies do not particularly have a good reputation with their infrequently brutal method of approach. As a result, they usually face immense resistance and unwillingness to pay on the part of debtors dealt with from the initial stages of the debt collection process. Notably, if the collection fees, although permissible, are often disproportionately high, particularly in situations involving massive number of small claims). On the bright side, lawyers enjoy greater trust by being so skill full in striking the right notes.

In addition to that, only lawyers are allowed to exhaust all legal possibilities in claim management or enforcement, legally qualified to enforce a claim in court if the (extra) judicial dunning procedure fails. In the event a defaulting debtor does not or refuse to pay as per the court judgment or a legally binding order to pay, only lawyers can initiate compulsory enforcement proceedings.

In this respect, the advantages of a law firm specialising in receivables management can be summarised as follows:

  • Specialised lawyers for checking legal bases (claim, limitation period, obstacles to enforcement, etc.)
  • Relevant legal and procedural experience at all stages of the proceedings
  • Enforcement of claims also in court
  • Organisation / monitoring of enforcement
  • Costs are ALWAYS borne by the debtor even in the case of lawyer's collection in default

Convinced of the advantages of lawyer debt collection?