If you have a Swiss agency and are struggling to recover debt from a customer, the trading culture and regulations differ in Switzerland from those you might be used to, which can make the debt collection process tricky. It is highly useful to hire a debt collection agency with a team of lawyers that can do the debt recovery on your behalf.
Things You Can Do When Your Swiss Customer Is Not Paying:
Contact the debtor and establish why the debt has not been paid yet.
Send out a reminder.
State a clear description of the invoice in the reminder.
Also, mention the period of payment within a specific amount of days in the reminder.
Knowledgeable About Local Customs Of Trade And Legislation
Make sure you hire a law firm that has extensive knowledge and experience of regulations and legislation in Switzerland. Also, a good understanding of commercial traditions and culture is necessary.
It is useful to have a team of lawyers that can communicate in Italian, German, and French, which can simplify the process of debt recovery. A professional lawyer can offer you honest advice about the chances of success in your debt collection for Switzerland matter. They can provide you with options and the best route to choose from.
The Process Of Debt Collection In Switzerland
This process can be split into two stages:
Extrajudicial Debt Collection
The debt collection process typically starts with this phase. During the extrajudicial phase, lawyers try to prevent court intervention since it can be pricey. They will contact the debtor to demand payment, and in special cases, they will liaise with the debtor in person. Once the debtor doesn’t settle the debt within a specific period, they can start with legal proceedings as per your instruction. Announcing legal proceedings often motivates the customer to pay.
Judicial Debt Collection
If the Swiss debtor rejects to pay during the extrajudicial phase, after liaising with you, the lawyers can take the case to court in Switzerland. They will offer information in advance about the chances of success in your debt recovery case. They will also give you details on the potential costs and will only proceed after you’ve given your permission.
European Court Order For Payment Proceedings:
With undisputed claims between two parties in any EU member states (except Denmark), it is probable to commence European order for payment actions. For European order for payment measures, the creditor must complete a standard form that must be submitted to the court. The court subsequently issues the European order for payment. The debtor must let the court know within 30 days, whether they object to the claim. If no response was received after 30 days, you might request from the court to finalize the order for payment. This is an enforceable and valid judgment accepted in any member state (except Denmark). The order for payment does not apply to disputed matters. The benefit of this procedure is the low fees and speed, however, if the matter becomes disputed, the procedure will lapse, and a standard civil proceeding must be effected if the creditor chooses to do so.