Entrepreneurs who try to collect unpaid invoices do not engage an external partner until the principal amount is large enough, according to an analysis of more than 500 Go Solid files. That is unfortunate because entrepreneurs lose a lot of income since every unpaid invoice can be collected, no matter how small the principal sum is.
The analysis of the new collection service, Go Solid, shows that 29 percent of entrepreneurs use a minimum amount before they collect the invoice through a judicial officer or lawyer. The amounts can add up quickly because 48% are confronted with unpaid invoices more than 5 times a year. Only 1 in 3 tries to obtain the payment themselves, resulting in a lot of time loss, annoyance and often no result.
Collect faster and cheaper, even for small amounts
Of these 500 files, the average principal amount is 2.450 euros and only 10% of these amounts to invoices under 200 euros. “Entrepreneurs don’t have to drop small invoices just like that. Today the recovery process is much faster and cheaper than two years ago. Many entrepreneurs are not aware of this and that must change, because we can collect invoices of 200 euros quickly and easily,” says Berthe Maes, spokesperson for Go Solid.
In 2010, another large-scale study was carried out by debtor manager Intrum Justitia, which showed that 2,5 percent (1) of all invoices remain unpaid (source: De Morgen). Six years later, Belgian law provides a new administrative procedure for the Recovery of Undisputed Debts. As a result, invoices between entrepreneurs (B2B) can be collected faster and cheaper, since the intervention of the court is not necessary.
Without any charges
Go Solid applies this legislation, but goes one step further by concluding an exclusive agreement with an insurance company that intervenes, when the debtor does not pay. This means that the entrepreneur does not have to pay anything himself. Go Solid’s operating costs are covered by the legally stipulated increase (max. 10%) for unpaid invoices. For many entrepreneurs, Go Solid appears to be the cheapest solution for collection undisputed B2B invoices.
Read here what Go Solid can do for you.