The world today is a global village. This comes with various opportunities for business owners. It’s now possible to conduct business with international partners just like dealing with local partners. However, debts are part of conducting business. You can’t escape offering credit to long term business partners regardless of their location. The only problem is clients not clearing debts in time exposing your business to a financial crisis. If you have clients in Germany, it pays to have ideas on the best way to ensure you collect your claims from them.
Here’s a catch
The process of finding new clients for any business isn’t easy. So, after getting a new client, you might not find enough time to thoroughly check your business partners in Germany before dealing with them. Perhaps you developed absolute trust after doing business with them for some time. There’s a risk of the business partner disappearing without a trace after you’ve offered your service or delivered your products. Imagine contacting a debtor who can’t pick your calls, reply to e-mails, or payment requests.
This is what to do
Foreign debtors are the biggest problem in international trade. This is because of the complexities in effectively recovering your debts. It’s essential to understand the best way to make the debt recovery process easy and hassle free. Luckily, Germany receives credit for its efficient court proceedings. However, a foreign business owner might get scared about lack of German law and procedures without knowledge of the local language.
Overcoming this requires allowing a professional with the experience and expertise to handle your debt collection in Germany
. You have higher chances of recovering the debt if your business partner doesn’t dispute your payment claims. Your professional debt collector will file a complaint in the Germany court for it to send the debtor a payment order.
Getting your payment
Debtors in Germany have a weakness of responding to payment reminders and calls from abroad. This is where a professional debt collection agency comes in. These have representatives in Germany to make the debtor pay promptly to avoid the court payment order. Professional debt collectors don’t wait for too long to apply for a payment order from a court. It’s mandatory to apply for this to meet the CMR Convention stipulated period of 12 months. Any claims after this period is limited and recovering the debt is impossible.
So, immediately you notice your Germany business partners taking long to pay, contact a professional debt collection agency immediately. These will apply for a payment order in Germany court early enough to increase the chances of recovering your debt. Once issues, the payment order is valid for 10 years to secure your claim.
And, the professional debt collection agency will do whatever it takes to ensure that the debtor effects payment
Understanding the expenses involved in the process
Proceedings to get a payment order aren’t expensive in Germany. There’s a chance to claim compensation for delayed payment with due interest as stipulated by the provisions in the German Commercial Code. To avoid exorbitant fees when dealing with German lawyers, hire a debt collection agency in your country with German partners to recover your debt. This saves time and is quite affordable.
Debt recovery is a huge problem in international trade. Without knowledge of German law and market, hiring a professional debt collection agency is a smart move. These have local partners who will ensure effective recovery of your debts.