Debt collection

Amicable debt collection

The Dunning Letter

You are a small business owner or a freelancer and you have more and more difficulties to get paid in time and hours?

Know that you are not alone because in France, only 36% of invoices are paid on time despite the LME Law (See our article)

The first action to be taken is to send a reminder letter as soon as the delay is noted!

This is a preliminary and preparatory step for other future actions!

In a simple letter, you remain courteous, factual in order to know the reasons for the delay in payment.

The only reason for the delay may be an oversight or lack of organization on the part of your debtor!

If not, this may lead to a dispute.

Don't multiply simple reminder letters or emails.

Some software programs that automate reminders abuse them to the point of being unproductive.

A delay can also be a sign of financial difficulties for your client.

It can be useful to find out about your client's financial situation and to monitor it using a Scoring service. Legalcity in collaboration with CreditSafe allows you to monitor the financial health of your client but also of a prospect.

Notice to pay (LRAR)

You are also advised to contact your debtor or his accounting department by phone.

This direct contact should be made without animosity and remain courteous to your debtor.

If oral communication proves to be complicated, a formal notice by registered mail will be necessary.

Be rigorous in its drafting.

Indeed, at this stage it allows you to indicate to your debtor that you can go further in the procedure.

Thus you can indicate the use of a collection agency in case of no response.

Don't delay and be very responsive when you notice a payment is overdue.

If the actions taken in your own name are not successful, do not insist.

Indeed, a claim, unlike good wine, does not age well.

By entrusting your debt to LEGALCITY 's collection agents, you delegate your reminders to professionals.

The psychological effect is guaranteed since the reminders are made by a trusted third party who has an obligation of means to succeed in your debt collection.

Favour an amicable reminder in the first instance in order to preserve your customer relationship and avoid going immediately to a bailiff.

The Debt Collection Agency has established partnerships with Bailiffs to assist you in the injunction to pay procedure.

A collection agency such as LEGALCITY will assist you with the strategies to be implemented.

Debt collection is a profession and a regulated activity. Favour the use of a fully digitalized firm and check on Trustpilot, for example, the opinions of its clients and its reputation.