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Business debt recovery has a statistical cliff: after 90 days, the probability of collecting an unpaid invoice drops below 70%. After 12 months, it falls below 25%. The difference between companies that recover their receivables and companies that write them off is almost always timing — specifically, taking structured action within 45 days of the due date.
Before escalating to formal collection, verify the basics. Is the invoice accurate? Was it sent to the correct entity? Has the debtor acknowledged receiving the goods or services? These aren't bureaucratic details — they're the documentary foundation that determines whether your claim is enforceable in court.
Once verified, the initial recovery process follows a clear sequence: a polite but formal payment reminder (day 1 past due), a firmer follow-up with a specific deadline (day 15), and a formal demand letter referencing the contractual payment terms and late payment consequences (day 30). In Spain, this formal demand should be sent via burofax to create legally admissible evidence.
Not every debt is worth pursuing. Before committing resources to collection, evaluate the debtor's financial position. In Spain, commercial registry records (Registro Mercantil) are publicly accessible and reveal a company's filed accounts, registered directors, and any insolvency proceedings. A quick solvency check prevents you from spending money chasing a debtor who has nothing to seize.
The economics are straightforward: if the debtor has an active business, identifiable assets, and a reputation to protect, professional collection has a high probability of success. If the debtor is already in pre-insolvency or has dissolved, your recovery options narrow significantly — though they don't disappear entirely.
Self-managed debt recovery works for friendly reminders and relationship-based nudges. When the debt exceeds 60 days past due, when the debtor stops responding, or when you're dealing with a cross-border claim involving a Spanish company, a licensed collection agency adds legal tools, local knowledge, and credibility that internal credit teams cannot replicate.
The cost of professional recovery — typically 5% to 15% for amicable collection — is almost always less than the cost of a written-off receivable. The real expense isn't the agency fee. It's the 12 months of inaction that turned a recoverable debt into a loss.
Businesses often become known today through effective marketing. The marketing may be in the form of a regular news .
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