Cover for Bad Debt Losses - Euler Hermes Kreditversicherungs-AG

When it comes to the crunch: a bad debt
8
Euler Hermes clients
have an especially easy time of it
Due to these persuasive arguments for professional
collection of trade receivables, we
have integrated credit insurance and debt
collection: with our “Cover for Bad Debt
Losses” (more details on pp 9/10). All you
need to do is to pass on your overdue
accounts to the collection division of Euler
Hermes Collections GmbH. We then take
care of contacting your debtors and
collecting the money, notify an insurance
claim where necessary for you and check
whether we can indemnify you for the loss.
Please look at pp 15/16 of this brochure for
further details of our collection service.
The last act plays out in court
Unfortunately, it is often unavoidable to take
late payers to court as a last resort. The
quickest and cheapest way to do this is to file
for a statutory payment order at your local
district court. After only about two months,
the supplier is entitled to send in the bailiff
with an executory title.
This contrasts with the six months or more
which it normally takes to disprove your debtor’s
defences against paying your invoice in
the case of a lawsuit for a payment order!
Anyone familiar with the procedure does not
even need the services of a lawyer to fill out
the paperwork for sending the statutory payment
order.
And by the way: executing a judgement title
can still pay off even when it appears at first
sight that your debtor has no assets – for in -
stance you can get a garnishee order put on
receivables he may be owed by third parties
or on possible future tax rebates due to him.
Make full use
of your security rights
Even without any specific contractual
agreement, every businessman – e.g. when
he repairs a valuable object – can exercise
a security right known as a possessory lien.
Thus a workshop only needs to hand over
a vehicle on which it has done repairs when
the customer has paid its bill. It may even be
entitled to sell the vehicle in order to realize
the proceeds due to it.