Manage your accounts receivable in Germany

Default customers are quite often a factor behind company insolvency, according to statistics. Even for successful companies, bad payment behavior by customers may turn into a major problem with severe consequences.

GRP Rainer Lawyers Tax Advisors, Cologne, Berlin, Bonn, Dusseldorf, Hamburg, Munich, Stuttgart, Frankfurt inform: Creditors should consider advising outsourcing the reminder and all further steps to a lawyer. In most cases, the first reminder on headed paper from a law firm will make defaulting customers pay their debts.

By letting a lawyer manage your accounts receivable, you can make it immediately clear to defaulting customers that it is a serious matter. Also you should specify the terms of payment on the customer invoice. This way, you can make anyone who does not observe the time limit for payment be in default.

The right way of debt collection starts with a thoroughly created invoice. You might risk that your customer does not enter into default in the event of non-payment, if there is no binding period specified for payment. In terms of debt collection, this is a waste of time and money. The first objective of a lawyer is therefore to have your company invoices checked so that they meet the debt collection requirements. An experienced lawyer will help you find the right way. You can also get a debtor’s attachable net assets and accounts checked by a lawyer.

If your debtor is still unwilling to pay, a lawyer will initiate an enforcement claim on your behalf. The legal proceedings will be executed by your lawyer. In some cases, the litigation collection proceedings do not always succeed without the debtor making an objection to the order for payment. You will then need to decide whether you want your lawyer to take measures to the next step. Debtors usually only have two weeks to appeal against an enforcement order. After this period, the enforcement order becomes valid. A lawyer will provide reliable advice on the strategy in your individual case and inform you about your chances of success.