It should be clarified that the administration of a commercial debt is a legal procedure. This is almost the last resort, as there are certain first steps for the effective collection of debts, such as out-of-court communications based on notices, collection letters, telephone calls or visits, during which the debtor is informed and reminded of the payment obligation owed to him. However, this type of step has no legal basis and should only be carried out on working days and hours. You can also contact a specialized company for these actions. Home – Blog – Everything you need to know about the legal management of commercial debt Commercial transactions of products or services are the actions that move the business, whether it is a large, medium or small business. While these are critical to the operation of any business unit, there are instances where poorly managed portfolios can become a nightmare. For example, if the buyer does not pay or pays late more than the agreed deadline. To make this type of situation more bearable, there are ways on the market to manage the recovery of a commercial debt with the maximum guarantees and with all the necessary support. Sometimes, even if a company has a good sales volume, it continues to keep its booking numbers in the red. This can be due to poorly managed portfolios that have gotten out of hand, sometimes due to the willingness to sell without thinking about the same security of return on investment. At this point, the legal administration of a commercial debt is seen as a possibility in the Panorama. The best way to avoid payment defaults is through appropriate business risk management.
However, in this case, pre-legal and judicial collection measures are an excellent solution to manage collection and avoid tensions in your company`s cash flow. All companies have a list of buyers or suppliers who gain certain advantages in trade, for example through trust or a strategic component. An example of this is the ability to make payments on credit. Of course, there are moments that must be respected and to which the customer must commit. In the event of default, any person acting as a lender may carry out the legal management of the commercial debt. It is wrong to believe that if a debtor says that he does not have to pay a debt, that obligation disappears. As the saying goes, «the word has been lost.» After the analysis phase, companies specializing in this field, such as Solunion, carry out a credit study of your debtor, which includes a number of options to finally advise you on which is the best and most effective to proceed with the legal management of commercial debt. At the moment when the entire phase of the analysis of the creditworthiness of the debtor is completed, it moves to the phase of the dispute, in which legal proceedings are formally initiated, in which the debtor must appear before the bank in order to resolve the situation of non-payment of his obligation.
This ranges from notification to possible sanctions or seizures of assets that could then be auctioned to provide the full value of the debt in question, as well as the respective interest, for the duration of the process. Legal action with legal liability will be initiated when these extrajudicial recovery remedies have been exhausted. For this type of proceedings and court proceedings, it is best for many foreigners to have an ally who advises throughout the process for each specific case, depending on each debtor`s conditions at the time of filing the dispute. Before starting the legal proceedings, at the stage of the preliminary administrative administration, the reality of your debtor is examined and the most effective way to carry out the legal management of debts is estimated. In this area, at Solunion, we have all the experience in the legal management of commercial debt and the tools necessary for our legal advisors to collect unpaid invoices in more than 150 countries around the world. There are several debt collection companies, such as Solunion, that have the experience and knowledge to help you collect trade receivables, protect your company`s cash flow, and help you continue your business despite default. For this process, the possible assets that your debtor has in his name and other types of income are analyzed, such as contracts with public institutions or other companies, in order to have the best collection tools to ensure the payment of the debt.