Picture this: company A ships out an order of machine parts to company B. But after the delivery, they’re left waiting for a payment that never arrives. There are multiple avenues we can take to recover this debt for our clients.
The first step is to contact company B, the buyer, to request the full payment, negotiate a payment plan or agree on a settlement. If the debtor is untraceable after 30 days, we’ll involve a local agent to initiate face-to-face contact with the debtor. This is our “ideal” scenario.
If after 60 days we haven’t been successful in our collection, we start legal action. First, we work with a credit report to gather the debtor’s financial information, then we appoint a regional lawyer who understands the specifics of the area. This is a particularity of Italy; in France, for example, you can apply directly to the court without a lawyer, making collections cheaper and faster. We proceed at this point by issuing company B with an injunction of payment – a demand for the debtor to pay – which can be either in the Italian or European court system.
Should there be no opposition, our lawyer will serve a court order to enable us to seize the debtor’s bank account or, alternatively, repossess goods. If there is an opposition from company B, an ordinary lawsuit will take place – which can be expensive and lengthy. The last resort is filing a petition for debtor bankruptcy which, if granted, enables us to lodge a claim for partial repayment.