The coronavirus has the whole world in its grip. Not only is public health at risk, but the global economy is being threatened as well. This is because, in order to contain the virus, substantial measures are being taken worldwide. Borders are being locked down, events are being canceled, and catering establishments, hairdressers, and other shops are being closed. Companies are hit hard by government measures. No work means no income. For some organizations, the coronavirus emergency will likewise cause budgetary issues.
These measures are necessary because our health comes first. However, they also raise other concerns for various entrepreneurs.
Is Judicial Debt Collection Still Possible?
In some cases, a judicial debt collection procedure may be the best solution. However, many entrepreneurs wonder whether legal proceedings are currently possible. Indeed, many countries are in lockdown, and this also affects the European courts. In general, most courts only handle urgent procedures, while other legal proceedings have been postponed. Urgent procedures are often conducted online or without an audience. It is also possible to start a new procedure online.
Avoid Bad Debt:
Most businesses will have experience of customers who refuse to pay up or who pay their bills long after they are due.
- You can approach new clients for exchange references or pay for an online credit check. Consider setting a lower credit limit for new clients until you are sure that they can and will pay you on schedule.
- You can approach new clients for exchange references or pay for an online credit check. Consider setting a lower credit limit for new clients until you are sure that they can and will pay you on schedule. Remind customers that you have a statutory right to charge interest on late payments (even if you do not plan to enforce this right).
- Check where and to whom you should send your invoices; you may need to send it to the purchaser for permission before it is paid or direct to the organization’s records office.
- Send your invoices promptly and start chasing payments as soon as they become due. Actively chasing overdue debts is a vital part of minimizing late payments. The sooner you do this, the sooner it should be paid.
- Reevaluate the terms on which you work with clients that consistently pay late: for instance, expanding the costs you charge them or dropping their credit office.
- Include your expert guides if your endeavors to recoup the obligation are disappointed. Your specialist can pursue an obligation for you or suggest an obligation assortment organization. A specialist’s letter might be sufficient to incite installment with no further activity.
Extremely important for your company that you receive the compensation you are entitled to, despite the coronavirus. This is why we will do everything in our power to achieve the best possible outcome in your debt collection case, even during these difficult times. Cases of debt recovery may, therefore increase, but insolvent clients may have been affected by COVID-19.