Debt collection in Poland

Andrzej Żurawski        14 maja 2016        Komentarze (0)

 

Debt collection in Poland is a service, about which the clients being foreign companies ask me increasingly.

There is nothing worse, than not receiving a payment for goods that have been produced and delivered to the debtor.- former trade partner. Nowadays, wholesale of products to Poland is subject to downside risk. Even the fact of having a solid, reliable recipient of merchandise does guarantee anything and exclude a risk.

There are two reasons for which debtors from Poland do not settle their debts and the execution is necessary:

  1. They are having financial difficulties
  2. They are planning to commit the fraud.

 

Debt collection in Poland- debtor’s financial problems

Business activities is always associated with some risk. In Poland that risk is high, due to very complicated tax regulations, relatively low skills of polish managers and instability of economy.

In addition, polish laws provides advantage to the national tax authorities (IRS) and the employees over the entrepreneurs in respect to their legal situation in case of debt enforcement proceedings. Hence, it is advisable to make sure that the debt recovery in Poland will be performed skillfully – what increases the possibility that the money will be recovered.

„It’s a common situation- debtor, who seemed to be a wonderful man, friend and business partner suddenly stops making payments. It’s normal, that we trust the man whom we know well and who is swearing that the problems that he’s having are just temporary and shall be solved within the few months. Unfortunately, it’s often so, that although the debtor is honest and has the will to repay his debt, it turns out otherwise. Polish law, in case of payment’s problems puts the creditor in the long queue – behind Administration and employees. Therefore it is so important, to initiate a vindication as soon as possible”

International debt recovery specialist.

 

Debt collection in Poland- fraud

Less often, but there are, regrettably also the situations, when rapport and trust are exploited to commit a fraud. Receiver, who always settles up on time, all of a sudden stops anwsering phone calls, mails, faxes, or simulates, that he has a interim problems, that will not last long.

„He pulled a fast one for 235.000 Euro! First please undertake any steps to recover my money and then accuse him of fraud! Yet, this is an ordinary theft, he has assets, but he has texted me, that he had gone bankrupt…”

 

Owners of production company from Italy

 

The above quote constitute an excerpt from the letter, in which director one of the biggest Italian air conditioners factory is writing about…one of his best clients in Poland. Their cooperation was going very well, their net sales reached 2.500.000 Euro and the client has always paid on time. At a certain moment the client ceased to pay for the delivered commodity.

He was answering e-mails and phone calls. He informed client that he’s waiting for the money from his contractors for which reason the payment will be slightly delayed. In fact, he was disposing his assets – by donating everything to his wife and children, or simply selling. When the Creditor, after six months of waiting, run out of patience and started the debt collecting procedure then it turned out that the buyer has nothing else, than the clothes, that he had on himself.

It is a common situation. Usually it appears that the buyer, whom seller regards as a responsible, serious client, is just simply preparing the ground for a fraud. Most frequently he is making business with several companies – which allows him to settle the debt towards one of the company from the funds that have been already stolen from the other one. He’s doing so, until he earns their trust and therefore will be able to conclude long settlement transactions –  then he simply won’t settle the debt and will seek for another victims.

 

International debt recovery specialist.

 

 What to do to minimize the costs?

First of all you have to make a quick decision to start debt collection in Poland. It is not a problem to recover a payment, which is one or two weeks delayed, because in that period  the chances of regaining the money reach 90%. The real problem starts, when a debt is a month and a half old. When three months pass the case is already urgent.

It is commonly known that in Poland and in other countries of Central and Eastern Europe, there is a very strong relation between the passage of time and the chance to recover the money – what has been graphically presented below.

debt collection in poland

Above graph (chart) was drawn up, based on the results of the researches made by of debt collection companies, active in recovering money for manufacturers from Italy, Germany and France on the markets of Eastern and Central Europe. Please, pay attention to the red point- that means a significant moment for each claim, after which the chances of regaining the money crashes.

Debt collection in Poland has a big chances of success, as long as the proper action wiill be taken quickly, without delays – In other words – if we recognize, at the appropriate time, the cause of non-payment and select the adequate measures.

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