The price tag of the collection of unpaid invoices

| Annelien Maurissen

No time to go after your unpaid invoices yourself, or you just don’t want to? Opt for outsourcing. You have several options for colling in external help. Each possible partner may or may not do certain steps. And every intervention often comes with a price. Informing yourself well in advance is the golden rule. Keep the following in mind when you make your choice.

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Uncertainty in amicable attempts

A debt collection agency collects outstanding claims on your behalf. They can only make amicable attempts to receive the amount. So, without the intervention of a judge, but for example by letter, telephone or e-mail. When your customer pays, a collection agency usually withholds a percentage of the outstanding invoice amount or charges certain costs. Sometimes they will ask for an advance or commission, without you knowing whether or not the collection will be successful.

You can also opt to sell your invoices and therefore also your debtor risk. Even before they have made an attempt to collect your invoice from your customer, you will already receive part of the invoice amount from the factoring company. This is a pre-agreed percentage. In other words, you will not receive the full invoice amount, even when the factoring company receives the money from your company.

A credit insurer insures the risk of unpaid invoices against payment of a premium. The insured amount and your insurance premium are usually calculated on the basis of your annual turnover. First, the credit insurer himself tries to collect the unpaid invoices. If that is not possible, you will be reimbursed on the basis of the insurance contract.

High legal costs in case of judicial debt collection

A judicial officer and lawyer can also try to get your customer to pay your unpaid invoice without the intervention of the court. However, they can initiate legal proceedings if no amicable solution is found. A letter from a lawyer of judicial officer sometimes has a more compelling effect.

A lawyer can file a subpoena and defend your interests in court if it eventually comes to legal proceedings. A lawyer charges costs and fees for his intervention. This can be an hourly rate or a fixed amount per letter, for example. Always inform yourself about their rates in advance.

The judicial officer issues a summons to your client. On the basis of a possible judgment, he can enforce payment and, if necessary, seize the property. The rates of a judicial officer are legally determined once the legal proceedings have started.

Legal costs can be quite high. A good legal expenses insurance can cover that. But of course, your pay a (monthly) premium for this.

A solution free of charges with Go Solid

Go Solid recovers unpaid and undisputed invoices between companies through an administrative procedure. This procedure is fast, efficient and cheap, so you avoid a long and expensive legal procedure. It is also free of charge for you via Go Solid. After we have accepted your file, you are automatically insured against any legal costs. When collection, we take your customer relationship and reputation into account. You deserve fair payment for services or goods provided, but your customer also remains a customer.

In addition, you do not pay an advance, guarantee or commission. With every new request, Go Solid examines the financial capacity of your customer. This way we estimate whether or not we can collect the total amount of your invoice. Go Solid charges a maximum of 10 percent on top of the unpaid invoice amount as an operation cost to your client. If your client is unable to pay at the end of the journey, you will not be presented with an invoice. With Go Solid you are automatically insured for any legal costs via D.A.S.

Send us your unpaid and undisputed B2B invoices in three easy steps and we’ll get started!