Recommended business procedures

The crisis that is shaking our economy like those of all the western countries, has major fallout on collections and on credit risk.

Especially with regard to business transactions, granting any extended payment terms after the invoice due date makes it even more difficult to recover your credit. Time passes exclusively to your damage: case studies show that chronic insolvencies (reaching bankruptcy of the debtor) have more than doubled with respect to the situation prior to 2007.

To optimize timing and results of recovery, the experience of our law firm suggests – on the basis of what many of our best clients already do – an extremely simple and effective standard procedure:

• within 7 days of the due date, send the first reminder;
• if this is not effective, within 30 days of the due date send the second reminder framed in the terms of the enclosed facsimile form;
• if the second reminder does not work, within 45-60 days of the due date, send the file to your law firm.

Applying this method will enable you to achieve the following:

• obtain immediate and optimum results, even when legal action is necessary for recovery;
• safeguard your relations with the unfortunate but willing customers (who, at your second reminder, will necessarily respond, also in monetary terms), separating them from negligent customers (who simply ignore it);
• this will put you in the position of the “good supplier” (“I’ve done everything I could”), preventing recriminations by customers for your punctuality in demanding your credits.

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