If your customer in Spain fails to pay a debt, or simply disappears, what you can do? It is a common problem businesses face and the ratings of non-payments have risen tremendously in recent times.
When doing business in Spain, you need to ensure that your affairs are in order. Know the parties you are doing business with. Make formal agreements with the authorised executives. Ensure that the agreements are drafted in accordance with Spanish legal requirements.
You need to document the claim carefully. The file must include documents such as the order confirmation, delivery note and invoice. Handle general conditions with the customer in a way that these are applicable in the event of a dispute.
When a customer fails to pay within the terms of payment, they need to be contacted immediately to enquire about the reason. If you cannot reach a short term solution, a demand letter would need to be sent via registered post with return receipt requested. It would help prove that the company is still active, based at that address and that you sent a demand letter. Do not accept vague payment proposals of the debtors. Be persistent, clear and do not wait too long when following up with them.
If there is no response to your demand letter, you need to act quickly and get in a leading global debt recovery agency. Their professionals, in thorough command of the debtors’ language, culture as well as legislation in the country, will be able to pursue the matter with efficacy. The legal system in the country is designed to protect the debtors from pressing creditors and a professional would be able to decide on the right course of action.
The debtor will receive demand letters and phone calls from the agency. If these do not result in a positive outcome, the agency will consider options regarding legal proceedings.