What company hasn't had to chase outstanding invoices ? Regardless of the time you could have used to develop your business or sign contracts, it can also jeopardize your commercial relationships and your cash flow.
At France Contentieux's, we understand the challenges you are facing, which is why we can take care of these for you.
The Amicable collection process consists in contacting debtors via direct communication (by telephone, e-mail or post). Courtesy is of the essence here, as the aim is to avoid legal proceedings.
In practical terms, it is a bit like settling a neighbors' dispute without calling in the lawyers: we try to discuss and seek solutions together to avoid involving a judge.
For instance at France Contentieux, we have the example of a Contractor that collected 90 % of a €50,000 debt simply by offering an appropriate payment plan to the defaulting customer. For what results? Their customer paid, and the collaboration lasted 5 years longer.
As you can imagine, not having to resort to legal proceedings is a good thing. Amicable collection has two major upshots: collecting your debts of course, but also preserving and even possibly strengthening commercial relationships with your customers.
Put yourself in your customer's shoes: you would probably rather receive a warm, understanding call than a cold, threatening letter, wouldn't you? The key is to treat late payments as a problem to be solved together in a respectful and diplomatic way. This approach will be crucial to maintaining a good business relationship.
Imagine having to hire a lawyer, fill out endless files and wait for months in Court... what a waste of time. By avoiding legal collection, you escape this obstacle course - and above all, the hidden costs: Bailiffs' deeds, legal fees, time wasted in proceedings: all these can quickly add up.
Finally, your cash flow improves dramatically. Faster inbound payments means a secure and healthy cash flow, projects that progress and less stress. Just imagine the impact of fast inbound paymlents on your growth: pretty interesting, isn't it?
Example: "Let's take the example of an SME which, thanks to a effective recoveryThe company has recovered a large receivable in less than two weeks. This rapid recovery could significantly improve its cash flow to finance ongoing projects."
Even if Amicable collection is an approach based on dialogue and negotiation, it is a structured process requiring specific stages and strategies.
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As we have already seen, negotiation and, above all, discussion are at the heart of the amicable collection process. Here are a few examples of how you can facilitate payment of your outstanding receivables.
You know your customer inside out, so you know how to talk to them, adapt your message and contact methods to their profile and status.
The idea here is to make it easier for you to automate your reminders and track your payments.
Depending on the situation, you can offer discounts for a quick payment, or instead apply penalties for long delays.
Constructive, ongoing dialogue is the key to quickly and efficiently resolving issues.
Outsourcing the amicable collection of your receivables to professionals, allows your team to focus on what really matters: your loyal customers and the development of your business.
With over 50 years of experience, we have learned one thing: every outstanding euro has a story behind it.
Despite all our efforts, it amicable collection may not succeed. In such instances, it is necessary to take the next step, as this implies that direct negotiation has failed.
We carry out an in-depth analysis to assess the chances of success in court, and work with our network of bailffs and specialized lawyers, to initiate the appropriate legal procedures to limit costs, such as Court Orders to pay, Writs of Summons, Oppose the sale of business assets, etc., and, if necessary, follow up the enforcement of the rulings we obtained.
Rest assured, Legal Proceedings will only be triggered if all amicable solutions have failed.
These solutions can offer a faster and more cost-effective alternative to the courts.
In some cases, mediation offers a faster, cheaper way of resolving a conflict. In this case, the help of a neutral third party is called upon to help reach an agreement that satisfies all parties concerned. If necessary, arbitration can be used to obtain an enforceable decision that remains outside the traditional legal framework.
Amicable debt collection is a preliminary, out-of-court phase in the recovery of outstandding receivables. It is based on negotiation, courteous reminders (calls, e-mails, letters) and the quest for a mutual agreement with the debtor, without initiating legal proceedings.
Outsourcing allows you to increase efficiency while preserving your customer relationships. An expert service provider has the tools and means to quickly follow up with debtors, saving your teams for strategic tasks.
This phase generally lasts between 15 to 45 days, depending on the complexity of the case. In case no settlement has been reached, a transition to judicial collection may be proposed.
Fees are often proportional to the recovered amounts (agreed percentage) or flat-rate. No fees are due if collection has been unsuccessful, unless previously agreed.
Yes, if attempts at an amicable settlement fail, we can help you initiate legal proceedings. The elements gathered during the amicable phase (evidence, exchanges) will strengthen your case.
To launch the out-of-court collection phase, it is necessary to provide the outstanding invoices, the signed contracts or orders, exchanges with the customer (reminders, formal notices) and any other proof of the debt (purchase orders, deliveries).
