Debt collection

What is debt collection?

Business practice shows that it often happens that payments for the supply of goods and services are made deferred. Often paid within a month. In certain cases, however, payments are not repaid within the agreed time, and when the delay is prolonged or if you are waiting several customers, this can significantly jeopardize the company’s liquidity. There are several solutions for these problems:

  • One of the possibilities is to create a department in your company that deals with overdue debts. Unfortunately, this is unaffordable for most small and medium-sized companies, as in order to do so effectively, investments must be made not only in on-the-job training, but also in infrastructure such as specialized software, a call centre and others.
  • Another solution is to use an external company that specializes in debt collection. In this case, you will be able to rely on а professionally trained staff capable of negotiating and experienced in communicating with debtors.
  • There is also an option which combines both where receivables can be initially processed in an internal department and then transferred to an external contractor. This is a solution that larger companies often choose in order to keep their more important customers for internal processing, and assign the rest to a specialized company.

Debt collection methods

Whatever decision you make, it is important to consider all possible outcomes and consequences. You can trust VM Consultancy Group to guide you with information about which method of collecting debt is appropriate for your case. Our practice has shown us that due to the specifics of every case, it is necessary to get professional advice so that you can save yourself from unnecessary headaches and future costs.

Out of court debt collection

With this method you can rely on a trained team of experts to take care of the collection of your debts from native or foreign business representatives in the form of phone calls, invitations, reminders and more. In some cases, an onsite visit is also required for direct contact with the debtor. This method is easily accessible and faster than the others. VM Consultancy Group offers two options – to pay a smaller percentage of the amount due in advance or to defer the costs in the actual debt collection. The success rate of this method is over 70%, mainly due to the correct assessment of specific cases and action strategies.

Judicial collection

In case of an undesirable result from the out of court collection of debts, it is desirable to initiate court proceedings. In this case, additional state fees, expenses and attorney’s fees are due, which are subject for reimbursement by the debtor at a later stage. You will be made aware of the progress of the case entrusted to us at all times. With this method, the initial examination of the debtor is extremely important in order to make a realistic analysis and assessment of the possibility of recovery of the debt before taking legal action. After the court decision is issued, it will be enforced, appointing a bailiff, after that there will be a seizure of accounts and income of the debtor.

Subscription for debt collection

In case you too often face late payments but want to focus on managing your business the best option is to trust our qualified team to prepare an individual plan and take care of the successful collection of your debts. This way you will get additional security and a partner you can rely on so that there are no more unwanted delayed payments to you.

Purchase of debt

In cases where you do not have the opportunity to wait and need a faster way to boost your financial resources, VM Consultancy Group offers the opportunity to purchase your debt. This is the right choice if you have an urgent need for financial resources and want to save on the costs of a possible court collection. We will do an initial research and prepare an individual offer that meets your needs.

Credit research and evaluation

The analysis of the financial and property state of the debtor is essential for the successful collection of the debt. Therefore, it is important to conduct a full study of the origin of the debt, as well as the documents certifying it, which will help prepare a detailed analysis of the debtor’s assets and his solvency.

The initial research includes information on the debtor’s current status – participation in other companies, availability of tangible fixed assets (eg: machinery, equipment, facilities, materials and goods), owned real estate, mortgages, foreclosures, recorded tests, availability of liabilities to suppliers, financial institutions, etc.

Free consultation

If you contact us for such a problem, the first consultation will be completely free.



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