Whenever doing business with companies in Spain, it is important that business owners keep their affairs in good order. They should perform a background check of the party they are doing business with and should make agreements with the appropriate, authorised personnel. Above all, the claim should be properly documented, in case the need for debt collection in Spain ever arises.
Documents like a delivery note, an invoice, and an order confirmation should be present in the file for a claim. Additionally, business owners should make sure they hand out their general conditions to their customer in the correct manner, to avoid disputes and have some evidence in case a dispute arises. To avoid arguments, it is better to draft the invoice in accordance with Spanish legal requirements.
If a Spanish customer does not make the payment within the deadline, business owners are advised to contact the customer directly to ask them why the payment has been delayed. They should send a demand letter if they are not able to get in touch with their customer. This demand letter should be sent by registered post and they should request a return receipt as well. Many business owners may find that their Spanish customer is stalling the payment with disputes or vague proposals. Business owners should avoid giving into this because they will likely never receive their payment. Avoid waiting too long.
The moment that your Spanish customer does not pay within the terms of payment, it is advisable to contact that customer immediately to enquire about the reason for the delay. If a short-term solution cannot be found, you can send a demand letter. Send this demand letter by registered post with return receipt requested.
If the return receipt is signed, you can prove that the company is still active, is based at that address and you sent a demand letter. Spanish debtors will always try to stall with vague payment proposals or disputes. If you give in to this, the likelihood of debt collection in Spain will become even more remote. Therefore, strict follow-up is necessary: be persistent, clear, and do not wait too long.
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