Timely debt collection is an essential precondition for a company’s liquidity, it affects money flows, the realization of investment plans, business development. Unsettled claims are a significant burden on the company’s liquidity and prevent it from focusing on its core activities. Their negative impact is primarily financial, but they also demand that the company’s management reallocate resources to the debt collection process or hire outsourced service providers to manage this issue.
Unfortunately, we are often seeing that a considerable number of claims are not paid within their due date for various reasons. Mainly, due to economic factors (deteriorating liquidity of the debtor), but sometimes also due to poor business ethics of the debtor.
Over the last years, we have seen an increase in the number of claims that have fallen out of their due dates, which has become somewhat a practice in the business operations of Serbian companies. The average number of days needed for voluntary payment amounts to 200 days, while the European average is significantly smaller. Adding to this a conclusion of conducted studies – that the creditors are often reluctant in collecting their claims through court proceedings, it is clear that business activities suffer significant challenges. We have especially noted the discouraging effect of various, often high, and sometimes unpredictable expenses in the debt collection process that the creditors are facing (in the Serbian court-governed debt collection process creditors are obliged to initially pay for costs of the collection process, but the debtor will be obliged to compensate them if the debt collection process was successful). In the end, when we consider the potential longevity of the procedure itself, i.e., the fact that the outcome of the procedure, which is a successful debt collection, is not always certain, it is clear why creditors are reluctant to start court proceedings leading to a debt collection.
Thus, we have prepared this Guide intending to explain to all interested people the debt collection process in Serbia and offer acceptable solutions that will lead to a successful debt collection process, with as few expenses as possible and within an optimal period.
You can download the Guide from the download section of this page >
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