Profit from Unpaid Debts?

Profit from Unpaid Debts?

It happens often, that some entrepreneurs solve lack of funds with „supplier credit“ (unpaid debts), here we bring one simple story from real life

Company XY, s.r.o. has ordered, as many times in past service from company AB, s.r.o.. Customer was very satisfied with provided service, after all, thanks this service they could provide prosperous company. Company AB, s.r.o. as usually provided service on time in agreed conditions. Company XY, s.r.o. and employees expressed great satisfaction. It would be also on the other side, except the payment did not come in due date. It was an amount of 2.400 €. This was followed by many calls, e-mail and mail communication. Even the meeting was arranged and payment was promised, simply internal receivable collection. Despite excellent communication money were not received. Maybe they will try to solve this thing till today, but company AB decide to solve this debt through PROTOURION Slovakia and use its services of receivable collection. After short debtor analysis through public and internal sources, company decides to solve this situation by judicial enforcement. Collection Company requested a payment order; in a short time it was issued. From the moment of issuing the payment order, debtor was interested to solve this matter very quickly - company was contacted by lawyer of company XY, s.r.o. concerning the agreement about payment, where owing company was requesting waiver of interest. Creditor wants to stay, despite all feelings, friendly, so decided to waive 50% of interest. Finally, debtor paid “only” following amount: 

Unpaid invoices 2 400,00 €
Shorten court fee 6,70 €
Attorney´s fees 217,76 €
Interest (50%) 52,17 €
TOTAL 2 676,63 €

If debtor would not change his mind, expenses will raise as following:

Rest of court fee 137,30 €
Attorney´s fees  116,86 €
Interest (50%) 52,17 €
Bailiff´s fees  580,00 €
TOTAL 3 562,96 €

So, the debtor would pay 48% more for 8 months delay, which has risen gradually.

Everybody can make conclusion from this real story. This end with happyend, one of the reasons was active behaviour of creditor and delegation of problem with receivable enforcement to professionals.

PS: cooperation still continues, even without pre-payment, under the supervision of collection agency.