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Our staff are very well versed in Commercial Law, Banking and Financial debt collections, making our collection agency second to none in the
Spanish B2B Debt Collection Field.
Make clear to your Spanish customer that you expect to be paid on time, at each contact, and always call if payment is past due. You will be on their "critical tasks to do" when they schedule their payments.
Many Spanish businesses will pay the creditor that make the most noise, make sure this is you.
Do not supply customers who haven’t paid their invoices on time, this will reduce the risk of being exposed to bad debt in Spain. Resolve any disputes immediately, the same day. Spanish customers have the bad habit to use the dispute as an excuse for non-payment or delay them.
Place a file
...if you act early.
Once you place the file with our Spanish debt collection agency there’s a high possibility that the customer will realise you’re strongly going after the debt in Spain. They will often pay up straight away, most times a letter from our Spanish lawyer or native Spanish debt collector will solve the matter in few days.
“Spain has developed a sound and well-structured SME policy, supported by a range of well-established institutions, covering all the key policy dimensions of the SBA.
Turkey scored above average in all measures except for bankruptcy procedures and the operational environment." OCDE
Spain's creditworthiness wasn't a healthy one until a few years earlier, when the repercussions of the international financial crisis were still noticeable.
Things are different as the market recovers, but there are still firms and individuals having trouble paying their debts. For those on the other hand who are trying to recover the debts owed, the Civil Procedure Code and the Employment Law are very restrictive about the debt recovery procedures.
The Civil Procedure Code has also been formalised with EU laws and since, regardless of the amount, allows for procedures for debt recovery in court.
Spain has two forms of debt recovery procedures, one of which is the above-mentioned in-court process. Nevertheless, it is also possible to use friendly debt collection methods as long as the parties have agreed. Even though the recovery begins in a friendly manner, almost all of the time the case concludes in a Spanish law court.
The creditor can, in both cases, apply to debt collection agencies or law firms for assistance in debt recovery. The collection agency can only approach the debtor by phone or email during the friendly debt recovery process and then submit the papers explaining the debt.
Since this approach sometimes fails and the debt is not recovered, it initiates court proceedings.
This form of procedure was implemented not long time ago; however, without mutual agreement between the parties, it can not commence. The rapid debt collection process usually starts in a court of first instance in the home town of the debtor. There are also exceptions to that rule and they are enforced when the debtor has failed to pay public utility-related amounts of money or has outstanding bills relating to construction management firms or public housing units.
The creditor must ensure that he / she has all the documentation corroborating before filing the complaint for the start of the debt collection procedure. Which include: invoices, slips of receipt, summons and other documentation that can prove the existence of a business relationship between the client and the defendant.
The request must then specify both the petitioner's and the defendant's addresses and the amount unpaid. The debtor has 20 days to either pay the debt or lodge an objection to the lawsuit after the complaint has been submitted. The court must launch the debt recovery process after 20 days, irrespective of whether the debtor has responded to the petition or not. It means that the court must issue an order of procedure, as specified by the court, to be followed by the financial institutions, debt recovery agencies, tax authorities or any other legal or natural individuals.
Savvy & Knowledgeable Spanish Lawyers for your Accounts in Spain
