Do not send numerous reminders
Experience shows that there is no point in sending numerous reminders and dunning letters. Send a maximum of three reminders including the formal notice. Do not call the reminders first, second and third, simply because then the buyer knows that several more will follow. This gives room to delay payment even longer.
The formal notice is the last letter you send to the buyer. In it, you state that if the entire claim is not paid within five working days, you will hand over the claim. You also state that, in that case, default interest and all judicial and extrajudicial costs will be borne by the buyer. If the buyer does not pay within five days, actually hand over the claim. After handing it over to the collection agency, it is often paid quickly after all.
Which collection agency will you choose?
If you have credit insurance, then collection often goes through the credit insurer. If you are not insured or do not have the claim insured, Xolv can help you find the right collection party. Depending on factors such as the amount of your claim, the country where the buyer is located and the industry in which you operate, we will choose the best collection party together with you.
Before transferring the collection, we will first collect information about the buyer. In this way, we determine what the recovery options are and/or whether other parties are already collecting. In addition, we make clear agreements with collection parties about the route to be followed, communication during the collection process and the costs involved. After all, these can add up considerably and the costs cannot always be recovered from the buyer. If you do have credit insurance and the claim is insured, the collection costs will be co-insured. Sometimes up to 100%.
The collection process
Xolv works with a number of specialised debt collection companies that operate successfully at home and abroad. This is what a collection process usually looks like:
