Recovering Outstanding Debts in EU Member States

There is one certainty in the commercial world that all businesses should recognise in that no market is static and there is constant change which must be accommodated.  A business must be agile and be able to react when a volatile situation arises, any unexpected issue can be dealt with far more effectively if the business is running smoothly.  Organisations that do cross-border business between the UK and Europe have had many considerable issues to prepare for with regard to Brexit.  Despite all the negotiations and the recent election in the UK, there are still many unanswered questions surrounding the question of post-Brexit cross-border trade. 

One particular aspect, common to all businesses, is the importance of having prompt payment of invoices within your trading terms if you are the supplier company.  It is essential for any business to have a continuous inward flow of money to maintain financial stability. If your business is owed money by a company in an EU member state it is strongly advisable to take firm steps to recover the outstanding sum as soon as possible.  As many businesses know the slightest thing is often used to avoid payment, it may be a good idea to re-draft your terms of business and tighten up your payment terms to prevent the potential for any future defaults. If you have outstanding debt, particularly long outstanding debt, you may need to take legal action to recover the money owed to you. A client that doesn’t pay your invoices promptly or doesn’t pay at all is not worth having as it will cost you too much in time, money and distraction from the core business to recover the debt. However, even the most careful business does find that from time to time there will be outstanding invoices that are difficult to recover.

The lawyers in Giambrone’s European debt collection team have an admirable record of recovery for our clients and their knowledge of local culture can help in more than one way; in the first instance they will negotiate with your debtor and they will be in the best position to obtain the best settlement for you. Secondly, our lawyers in our European offices can act extremely quickly for you, using all the various strategies to provoke payment, including the threat of winding up the debtor’s business and recovering your debt from the debtor’s liquidated assets. If it proves necessary to take court action our lawyers will be able to enforce a court order as quickly as possible.

Taking swift action when problems are recognised will not only limit your risk but send a firm message to your industry sector that you will not allow a spiralling unauthorised credit to damage your business. However, it is far better not to allow your customers to breach your terms of business in the first place. Late payment is one of the biggest risks that organisations encounter and one of the hardest to overcome when doing cross-border business. Knowing your customer and recognising the signs that a customer may have financial problems is an essential part of your approach to being a successful business. Monitoring the financial health of your customers is a sensible tactic that will help to keep your business on track.

If you would like to know how to recover your outstanding debts in Europe please click here