VGS corporate lawyers
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+44 2039665531

Milan

+39 0250043613

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Debt recovery & credit collection

In Italy over 35,6 million debt recovery files have been assigned to specialised credit recovery companies in 2016; which one third have been successfully recovered. Thanks to this single statistics, it appears paramount for companies the maintenance of an effective system dedicated to the collection of overdue accounts. However, many small and medium companies struggle to implement a robust debt recovery system because of two main reasons:

  • Keeping track of which accounts are overdue can be very difficult;
  • Most of the people don’t enjoy pressing others for money.

Important to realize, especially for SME companies, an effective and robust credit collection system shall be integrated into the sale process on a permanent basis. Most of the time, non-payment of credit is a direct consequence of temporary and unexpected events: illness, divorce or business losses. Under this circumstance, it appears understandable why the first approach shall always be kind and oriented to preserve the business relationship. Then, an ultimatum only may work in a few cases and only as a last possible approach. 

Debt collection main elements

Debt recovery procedure shall follow a clear progression and it should be consistent with the business general objective. Moreover, the procedure should be friendly and professional seeking to offer to the delinquent customer an opportunity to reach a positive conclusion. VGS lawyers usually suggest the following criteria:

  • Establishing credit policies – Credit Policies represent a useful tool to minimise collection problems;
  • Collection Process organisation – The company shall implement a precise and wide collection tracking system. In order to do so, using dedicated IT tools may simplify the whole process;
  • To determining reasons for non-payment – In some cases, non-payments occur because of customers’ financial problem or because they are unhappy with the service they have received. Then, first approaches shall determine non-payment nature and reasons with the purpose of ascertaining the good conduct of the company;
  • Implementing an appropriate method of contact – The approach you will follow it will probably vary from customer to customer. According to customer credits history, you will decide if your approach will be based on a paper or telephone notices.

VGS lawyers debt collection services are based on the following skills and activities:

  • Knowledge of the culture and territory where your debtors operate; 
  • Carrying our social and economic analysis of the territory where debtors operate;
  • Professionalism and confidentiality of professionals involved in your debt recovery case;
  • Constant updates;
  • In-court robust experience of our professionals.

At VGS lawyers we provide you with effective debt collection services. Our professionals tailor a specific strategy based on your needs and business. At VGS lawyers we are perfectly aware that non-payment issues represent one of the most relevant problems for SME companies. For this reason, our strategies are effective and most of all tailored on our clients’ needs.

For further information please contact info@vgslawyers.com or leave your details on the Contact Form and you will be contacted within 24 hours.

Practice Areas

  • Company law
    • Bankruptcy
  • Debt Recovery & Credit Collection
  • Arbitration and Mediation
  • Contracts
    • Acquisition Finance
  • White collar crimes
  • Data protection and GDPR
  • Professional Negligence
    • Medical Malpractice

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