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Don’t Get Stuck Chasing Unpaid Invoices in Spain: 5 Common Excuses

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Are you having difficulties collecting unpaid invoices in Spain? You’re not alone. As a foreign creditor, trying to collect unpaid invoices in Spain can be challenging, especially when dealing with reluctant or unhappy customers.

The good news is that you don’t have to go it alone. Our Spanish debt collection agency has the experience and expertise to help retrieve what you’re owed quickly and efficiently. We understand how difficult it can be trying to recoup losses from a debtor in another country, so we use a combination of amicable options with our in-house Spanish lawyers to help alleviate the stress of the situation.

It’s common for Spanish companies to delay payment or even provide excuses for not paying an invoice. In this blog post, we will discuss five of the most common excuses so that you can be better prepared and able to react quickly if they arise.

Difficulties a Foreign Creditor May Face While Trying to Collect Unpaid Invoices in Spain

Collecting unpaid invoices from Spanish companies can be a difficult task for a foreign creditor. There are many legal, cultural and language barriers that can stand in the way of successfully collecting an invoice. In Spain, companies may use one or more of the following excuses to delay or avoid paying an invoice:

• Outdated paperwork: Companies may challenge an invoice because of outdated paperwork and demand all documents to be updated and authenticated.
• Refusal to recognise validity of contract: Companies may refuse to recognise the validity of the contract, even if it has been fully executed according to Spanish law.
• Bad debt due to insolvency: Companies that are insolvent may be unable to pay their debts, leaving creditors with little or no legal recourse.
• Numerous disputes over payment terms: Companies can raise numerous disputes over payment terms and claim that they have been unfairly treated by the creditor.
• Claiming they have no knowledge or records of the agreement: Companies may deny any knowledge of or records concerning the agreement in question.

In order to avoid these common excuses from Spanish businesses, it is best for foreign creditors to engage professional debt collection services with experience in this area. This way, creditors can rest assured that their unpaid invoices are collected efficiently and amicably.

Advantage of Using a Debt Collection Agency and in-House Spanish Lawyers

When it comes to debt collection in Spain, no one is more qualified than a debt collection agency and in-house Spanish lawyers. By using them, you get the best of both worlds: the expertise of seasoned debt collectors and the legal prowess of trained lawyers to ensure that nothing goes wrong during the process.

Using our agency's services will enable you to quickly identify any problems with the invoices and take steps to resolve them. Our in-house Spanish lawyers are highly skilled at working with debtors, particularly in cases where they may be using excuses such as:

• Misunderstanding/Non-Delivery of Goods
• Eternal Payment Delay
• Unclear credit terms
• Invalid payment terms
• Counterclaims/Disputes

By utilising our comprehensive debt recovery services, you can avoid lengthy court proceedings and opt for amicable solutions like negotiation or mediation. Not only this way is faster, cheaper, and safer for your business but also it helps maintain good relationships with customers.

Common Excuses Spanish Companies Use to Delay or Not Pay Their Invoices

When it comes to debt recovery in Spain, one of the most important elements is to understand the excuses that are commonly given by companies who are reluctant or unwilling to pay their invoices. Here are five of the most common excuses used by Spanish businesses when not paying an invoice:

1. “It is too expensive.” This excuse often comes from smaller companies who may have difficulty meeting the payment terms, either because they don't have enough cash flow or because they offer discounts to their own customers, meaning they have less income.
2. “The invoice isn't approved yet.” This excuse is used when a company has not yet received approval from its board or management team for the payment of the invoice. However, once approval is received, payment should be made in a timely manner.
3. “We need more information about your company and/or product before we can pay.” In some cases, companies may request more information before making a payment even though there were no questions raised during the invoicing process.
4. “We haven't received the goods or services yet.” This excuse is sometimes used when the goods or services that were promised have not been delivered on time, and thus payment cannot be made until those products or services have been delivered as promised.
5. “We are having financial difficulties right now and cannot make payment at this time." This excuse is used by companies that may be facing financial distress and thus do not have enough money to make payments on time and in full despite their best efforts.

Using our debt collection agency and in-house lawyers you will see immediate results and rapid solutions.

How Our Debt Collection Agency Can Help

When you're stuck with unpaid invoices in Spain and your debtors are giving one of the common excuses listed above, it can be difficult to know how to effectively collect your payments. That's where our debt collection agency comes in.

Our team of experienced collections professionals can provide assistance for a variety of scenarios and payment difficulties, including those outlined below:

-Developing an amicable strategy to reach an agreement with the debtor.

-Litigating on the creditor's behalf.

-Helping creditors collect late payments from multinational companies.

-Obtaining court judgments in favour of the creditor.

-Assisting creditors with enforcement proceedings.

By working with our Spanish debt collection agency, you can rest assured that your unpaid invoices will be treated quickly, professionally and confidentially - without any negative consequences for either party involved. We also have extensive experience dealing with complex issues involving multi-jurisdictional matters, which gives us a unique advantage when it comes to collecting overdue payments in Spain.

Alternatives to Legal Actions for Collecting Debts

When it comes to recovering unpaid invoices, legal action is not always the best course of action. With the help of a debt collection agency, you can explore alternatives to legal proceedings and negotiate with the debtor.

Some common strategies that are often used are:

Amicable Agreements

Amicable agreements involve entering into an informal agreement with the debtor in an attempt to settle the debt without resorting to court proceedings. This option can be beneficial for both parties as it may result in reduced costs and less time spent on resolving the dispute.

Early Payment Incentives

In some cases, offering incentives such as a discount on future services or products can encourage your customer to pay what they owe. This can be a great way to avoid lengthy court proceedings and maintain a positive relationship with your customer.

Payment Plans

Another solution is to suggest a payment plan where you will receive payments in instalments over a set period of time. This approach can provide more certainty that you will eventually receive what you are owed while helping your customer budget for payment of the debt.

At our debt collection agency, we understand that not all disputes have the same circumstances and therefore require different solutions for each case. We have experienced Spanish lawyers who will explore these alternatives and help you recover your money without resorting to legal action too quickly

Determine if the Debt Is Valid and Collectible

It's important to know that a debt is both valid and collectible before taking any legal action. In Spain, there are certain preventive measures you can take in order to determine if a debt is valid and collectible:

1. Analyse the invoices and ask for clarifications about discrepancies or details that are not clear.
2. Demand proof of delivery, in case goods were involved.
3. Maintain records of everything related to the debt, including emails, payment terms and other documents you may need in the process of collecting your money.
4. Check that the company from whom you’re trying to get payment is still in operation – if they’ve gone bankrupt, further action may be needed to recover your money.
5. Review your own payment terms to make sure they’re fair and reasonable according to Spanish law regulations, so as to avoid disputes when it comes time to collect payment.

Spanish companies often rely on common excuses for refusing or delaying payment, such as:

• They never received the invoice
• The product was not up-to-spec and didn't meet their expectations
• They don't have the funds or budget available
• The amount owed is too high
• The company's internal policy requires several layers of review before approving payment of an invoice

By using our debt collection agency, you can assess each particular situation individually and determine whether an amicable solution can be reached without resorting to more extreme measures like filing a lawsuit against them in court. This is often time consuming and costly; but with our expertise in the area and our team of Spanish lawyers on board, we will make sure your money

Impact of a Slow Economy on Debt Collection Process in Spain

Spain's economy has taken a hit in recent years, leaving many local businesses struggling to keep up with their debt payments. This can present unique challenges to foreign creditors chasing unpaid invoices in Spain—especially as customers may be eager to use the weak economy as an excuse for non-payment.

Below, we list 5 common excuses given by Spanish companies for failing to pay their bills on time:

1. "We don't have the money": This is not an acceptable excuse and should be treated seriously, as it may indicate that the debtor is in serious financial trouble and is unlikely to be able to settle the debt even if all else fails.
2. "We don't agree with your terms or the invoice amount": If a customer disagrees with your terms or feels that they are being overcharged, it is important to try to reach a mutual agreement before resorting to legal action.
3. "We don't recognise your invoice": This is a favourite tactic of debtors hoping to delay payment on an invoice that they have been issued with, and should be treated quickly - providing additional documents such as delivery notes or invoices is often enough prove ownership of the debt.
4. "Our payment system has not yet processed the invoice”: In some cases, customers may claim that they have submitted payment but due to errors on their end, it has not yet been received by you - contact your bank directly for confirmation before proceeding.
5. “We haven't received any communication from you about this”: This excuse can also suggest that a customer has forgotten about an invoice and

Role of a Credit Insurance Policy in Debt Collection Process in Spain

Having a credit insurance policy is an effective way to protect your business from risk. Credit insurance can help take the stress out of chasing unpaid invoices in Spain, as it offers an automated and legally binding claim process. If a customer fails to pay, you can make a claim and receive up to 95% of the invoice amount within 10 days.

A credit insurance policies cover up to 500,000 EUR per claim and guarantee that you won't be left in the dark when it comes to collecting unpaid invoices. Be sure to contact our debt collection agency if you require more information about this type of protection.

As reputable experts in debt collection services in Spain, we are dedicated to finding the best solutions for our clients after all the amicable options have been exhausted. We always suggest hiring our Spanish lawyers first before taking any other drastic measures; they are not only well-versed in Spanish business law but also experienced professionals who provide excellent legal advice that can expedite the process of collecting your debt.

How Our Spanish Law Firm Can Assist With a Legal Case Against an Unpaid Debtor Company

If all other options have been exhausted, you may be in a situation where you need to pursue a legal case against an unpaid debtor company. Our Spanish law firm can help you navigate the complex Spanish court system and track the progress of your legal case.

The lawyers at our law firm understand the local nuances and regulations, giving you an edge against the debtor company in court. They will also prepare all relevant papers according to Spanish civil code, so that there is a clear understanding of the debt owed. Furthermore, they can issue legal procedures such as:

• Court proceedings: Our lawyers will represent you before the court and in any other public administration organ taking part of it.
• Garnishments: In order to collect a debt from an unpaid debtor, it is possible to take legal actions such as initiating garnishment on bank accounts or any other personal or business asset owned by that debtor.
• Legal actions: We can take steps from warning letters or notifications up to filing petitions for bankruptcy or insolvency depending on each particular situation.
• Executions: We will handle all aspects of execution in order for your claim to be enforced by any authority or organ needed for the collection.

How Creditors May Still Be Able to Leverage Their Unpaid Invoices Despite a Legal Action

When dealing with unpaid invoices in Spain, legal action is often the last resort. Before considering it, creditors can usually leverage their unpaid invoices by taking amicable options such as hiring a debt collection agency or an in-house Spanish lawyer. This way, the creditor can more easily identify and address the excuses provided by their debtor:

1. Lack of Funds: The company claims that it does not have enough funds available to make payment.
2. Incorrect Billing: The company disputes the amount of or accuracy of billing.
3. Quality and Service Disputes: The company believes that they haven't received the quality of service or goods they expected or paid for.
4. Delayed Payments: The company is struggling financially and needs time to ensure payment of invoices when it has available funds.
5. Bad Communication: Poor communication on both sides has led to a misunderstanding causing an invoice to go unpaid for an extended period of time.

By taking amicable measures to understand these common excuses behind non-payment, creditors have a better chance of recovering their unpaid accounts without having to resort to legal action in Spain—with our debt collection agency, you are in good hands!