Economic intelligence has become a key feature to a well-managed company. It is worth to know who is your client and what you can expect of him. The information will enable you to limit to a certain extent (and sometimes even limit altogether) transactions with entities which may later become insolvent. Knowing the economic status of a given company, especially its financial liquidity, as well as its position on the market and gathering data on any possible bankruptcy or other legal suits will help you minimize the unnecessary risk of ill-judged transactions. The information gathered by us comes from available official and other sources, databases, which are accessible to us and other specialized units cooperating with our office. The reports prepared by us always include the most up-to-date information and the scope of sources guarantees its full and objective outcome.
Establishing new clients may put your business at risk of companies which are insolvent or simply unfair. Such contacts lead to considerable financial loss or even cause bankruptcy. On the other hand, the current market conditions demand that a company should make cashless transactions. One of the most crucial business aspects is creating the opportunity for clients to buy products and services through commercial credit (with delayed payment), simultaneously maintaining a high level of security for imbursement (minimizing the credit risk).
We offer actions verifying the authenticity of documents provided by the entity applying for a commercial credit and checking the data within with the actual state of things. The actions are performed at the office of a potential customer and consist of: checking accountant books, carrying out examination of the property, as well as research on past financial reliabilities.
The second but also equally important element is a thorough financial analysis of a credit applying company (especially its liquidity) and creation of property security, which while being convenient to the client, would also provide efficiency in debt recovery and its precedence before others creditors in case of a business failure of your client.
Signing up a contract with an entity that seems an honest and stable business partner or concluding another agreement with a well-known client often dull the vigilance of the financial department of a company. One must remember that the market economy reality there is a real danger involving a failure in the financial enterprises of your client, leading to a disturbance in its liquidity or even insolvency.
Our offer also involves controlling the current financial status of clients and immediate notification of their deterioration. Lack of knowledge in the area may lead to further obligations on the behalf of the client which would immediately be unpaid and endanger the company even further. Also an accurate evaluation whether the problems of a client are temporary or not will help to take the necessary steps in dealing with the situation, especially securing financial claims on account of given credits.
We also analyze cases and propose solutions for future actions and measures, when the credit instability of a client has already taken place.
A thriving company on a market is perceived as successful not only through the number of its contracts, but also, if not mainly, through the received payment for its products or services. Claim inquiries are time and money consuming and in some cases without the necessary resources they end in failure. Our services are complex debt solutions, which step by step lead to a successful recovery of your money.
a. debt quality evaluation
A successful recovery of payments from the group of so-called “difficult credits” is dependant on a diversity of actions, their scope and other factors, such as transaction security, current standing of a debtor and others.
In case of payments already due it is vital to evaluate whether there is a chance to collect the debt successfully or whether such a collection will not only end in failure, but also will cause additional court and collection expenses to the creditor, as well as mean losing any opportunity for further cooperation with the debtor. In order to prevent such a situation, it is necessary to gather information about the economic status of the debtor’s company, its movables as personal and real property, as well the financial status of its owners or trustees.
In some situations instead of taking the debt collection to court, it is more advisable to reach a settlement with the debtor, which of course means some amount of compromise, but also enables usually to recover a greater part of amounts due and leaving an opportunity for future possible business transactions.
b. research on financial and property status of debtors
One of the conditions for a successful debt collections is addressing the claims to suitable property elements, which will guarantee full coverage of liabilities. Disclosure of property elements owned by the debtor minimizes the time and costs of execution proceedings, for instance by avoiding court measures needed for such a disclosure.
We offer actions leading to the disclosure of debtor’s property, as well as assessment services. Property research include (in case of trading companies) real property: lands, buildings, constructions; personal property: bank accounts, vehicles, machines and equipment owned by the company, as well as payments owned by clients of the research entity. In case of natural persons conducting business activity besides the abovementioned property elements, the research is done also on private property of the owner. We will also established whether the person is married and if yes, whether he/she has a joint property of husband and wife or whether his/hers property is separate.
The actions leading to appropriate information is gathered by us directly at the office where the business activity takes place, at the place of residence of the entrepreneur and other offices and institutions which may store adequate data.
We also provide research on current financial situation of a debtor. Knowing his clients – both debtors and other creditors, actual cash flow and repayments, bank account turnover, the amount of taken credits and other liabilities will fully enable to evaluate whether the debtor is able to pay his debt.
Sometimes the debtor changes his office and his new address is unknown. In such cases we take necessary actions to establish the address of the new office. In cases when a company has moved out and then suspended its activities or closed down, we take measures aimed at finding people responsible for obligations and we launch investigations separately through civil and penal proceedings. We also seek other ways to recover the debt, e.g. claiming money from the estate of the closed company and liabilities of the company towards other entities.
c. pre-trial and pre-enforcement conciliatory actions
The collection process with the involvement of court and a debt collector may be laborious and expensive. Sometimes all the problems may be circumvented through a conciliatory agreement with the client. We include a proposal of such an agreement together with the last prompt-note we send. We also take steps to contact the debtor – make telephone calls or meet the debtor if necessary.
The result of such actions is very often an out-of-court conciliatory agreement. Usually the agreement is based on payment of the debt in installments, which is closely monitored by our office till the final payment. In return for a prompt repayment of debt, depending on the agreement, the creditor renounces any interest from debt or remits a part of the amount due.
Any kind of negotiations pay off – even if the court order is there and the next step is to call the debt collector. Gains from conciliatory agreement are mutual – the debtor will not have to worry about additional high debt collecting expenses and the creditor will receive his money faster and without the extra collection fees/
The settling negotiations conducted with the debtor help to save time and money which may be allocated to business matters.
d. conducting judicial proceedings
Conciliatory negotiations not always end in success, sometimes the only way to collect the debt is taking legal action. We edit the lawsuit on the basis of materials given to us by our customer and file it to a suitable court. Until the debt is paid we supervise the proceedings representing our customer before any institutions connected with the case.
Another important matter in such proceedings is evaluating whether the collection is caused by business failure on the behalf of the debtor or his criminal activities. In the latter case, it is vital to initiate criminal proceedings, gather evidence and send a sufficient amount of information with applications to law enforcement bodies that the case may be closed promptly and efficiently. During such proceedings usually the whole property and the source of income of the perpetrator is revealed and often the property is taken as security.
As a result these actions satisfy the creditor on three levels: 1. through voluntary fulfillment of creditor’s needs by demonstrating in criminal proceedings that the damages caused by the crime have been repaired; 2. through court’s judgment to amend the damages; 3. through claims adjudged by the criminal court (or in command proceedings on the basis of a legally valid guilty verdict) and with the use of property security or information on debtor’s property.
e. supporting collection proceedings
After having executory permit for claims and ineffective conciliatory arrangements, a motion is filed for collection proceedings to a local debt collector or a debt collector chosen by our customer, if such a choice is not prohibited by law.
During the progress of collection proceedings we cooperate with the debt collector and supervise his actions.
At this stage of debt collection all the previously gathered information about the debtor play a significant role. The act of debt collection is based strictly on the property elements which were indicated for debt recovery. When such indication is not placed and the property is not revealed by law enforcement, the collection is dismissed due to ineffectiveness.
As of January 1st, 2001 a new institution have been formed to make record of all business entities and insolvent debtors – the National Court Register. All companies established after January 1st, 2001 and to December 31st, 2003 all entities existing before December 31st, 2000.
The process of transformation or registration of a company in the National Court Register requires a correctly filled in application together with its enclosures on an official form, as well as paying a fee.
We offer to fill in the application and file it to the National Court Register while stay permanently in touch with the court. In cases when some formal deficiencies occur, we supplement them in time as to prevent application rejection and set the proverbial wheels in motion.
We acknowledge the registration process at National Court Register to be finished, when all the necessary information according to the actual state are listed and a registration copy from the National Court Register Central Information Unit is obtained.
When registering or transforming your business, we offer complex solutions for the needed procedures including professional consultancy on the most efficient ways of transformations, as well as multifaceted notary services, taxpayer and statistical registration, business registration.
One of the utmost important elements of any business activity is running smooth accounting and reporting procedures, as well as other management activities. It is also vital to provide your clients with high quality credit sales, which will also be safe for you in terms of repayment. In order to accomplish this aim, on the one hand, one must evaluate the credibility of a customer to eliminate these which take irresponsible business decisions or simply are fraudsters.
On the other hand, one must also create property securities for commercial credits convenient for clients that would also provide efficiency in debt recovery and its precedence before others creditors in case of a business failure of your client.
Our company, thanks to many years of experience in creating credit security systems for commercial, service, lease and other businesses, is able to offer you such procedures to your company.
Accomplishing this aim will be based on the following stages:
1. Establishing the credit payment structure in a company.
2. Analysis and efficiency evaluation of current procedures.
3. Analysis of range of unpaid amounts due and reasons for their existence.
4. Working out credit security procedures taking into consideration the type of business and diversifying it on the basis of risk management and cost efficiency.
5. System implementation and personnel training.
6. Active participation in task fulfillment through credibility analysis of clients connected with documentation, accounting and property research of customers – both in initial analyses, as well as permanent monitoring.