How to take care of the financial liquidity of the company?

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In order not to allow arrears, the company should independently take care of their liquidity and properly identify the needs in comparison with current liabilities of the company. It is implemented in the company internal procedures of receivables management. Even the shortest periods overdue invoices can mean trouble for the company, so you may want to respond to the delay.

The financial condition of enterprises largely depends on the smooth adjustment of their payment in connection with the enforcement of receivables from debtors. The most favorable situation is when the repayment period by business partners is shorter than the time limits regulating their own commitments. As a result, incoming funds allow you to settle debts the company without delay. In business it does not happen very often, and in such cases the company must normally have recourse to additional financing, eg. Credit torque. However, this is another commitment, which also have to repay.

Firstly manage receivables

In order not to allow arrears, the company should independently take care of their liquidity and properly identify the needs in comparison with current liabilities of the company. It is implemented in the company internal procedures of receivables management. Even the shortest periods overdue invoices can mean trouble for the company, so you may want to respond to the delay. For large companies a good idea to designate a person responsible for monitoring receivables. The main task of the employee performing this function will be in direct contact with the debtor, should therefore be characterized by the relevant personal characteristics like conscientiousness, assertiveness and consistency in action. In practice, it looks as if the approaching date of payment, the contractor is informed of this in a fixed form, eg. Telephone or by email.

As a result, the debtor will not be able to argue that inadvertently missed the payment deadline and there is no situation of extending the deadline for payment. Monitoring will enable both the identification of vulnerable receivables, as well as to motivate the debtor to regulate them. For this purpose, the company can be used as an incentive in the form of discounts for early repayment or draw the consequences in relation to unreliable business partner. It may prove to be the signing of a trade agreement on cooperation, which will set deadlines for payments, bonuses for their observance and penalties for exceeding. Especially bonuses can motivate partners, because they represent for them a tangible financial benefit. In addition, clearly defined terms of cooperation is beneficial for both parties, especially for long-term cooperation.

If the contractor still refuses to pay, you can send him a prompt telling you to initiate appropriate procedures, which may include, for example .:

  • interruption of supplies or services,
  • begin charging interest on debt,
  • notification to the National Debt Register.
  • Interruption of supplies is quite an effective way of inducing the debtor to pay. If during ordering it turns out that the level of debt counterparty is high then its implementation will be automatically suspended. As a result, there is no increase in receivables. Another motivating factor for timely payment will be charging interest. Their height can be determined in the agreement, there will be no obstacles to be relied on. Otherwise, you can apply the rate of statutory interest (13%).

    Another way is to inform unreliable partner of its intention to submit it to the National Debt Register. Entry on the list of debtors not only undermines the credibility of the company and the difficult access to bank loans, but also makes it impossible to attract new business partners. If these procedures prove insufficient, entrepreneurs can take advantage of other methods of recovery, such as .: negotiation, mediation, sale of receivables, the services of a collection agency or court proceedings.

    Secondly negotiate

    If the debtor has a significant position in the market and we want to maintain good relations with them, you can podjec negotiations on how to repay the outstanding debt. However, be aware of reaching a compromise that will define possible to meet the repayment terms. As a result of negotiations should be agreement as to the timing and form of payment, the amount of any installments and interest due. In the case of settlements you can agree on mutual compensation claims, stating that invoices will be affected. If for various reasons, not negotiations are successful, you may need the involvement of third parties and attempt to reach consensus through mediation, which is regulated by the Code of Civil Procedure. This method is a voluntary process and participates impartial mediator. It is carried out under a contract of mediation, but also the court has the right to order the parties to the dispute. Importantly settlement concluded before a mediator and approved by the court has legal force. With this method it is possible to resolve disputes faster recovery of the debt without the need to adjust the fees associated with litigation. Typically, the cost of mediation varies from 1 to 3% of the value of the dispute, unless the mediator disclaims remuneration. If this form of debt recovery proves to be ineffective, you can then use the services of professional debt collection companies. According to the art. 509 KPC debt can be transferred without the consent of the debtor to a third party, unless it would be contrary to the law, contractual clause or property obligations. Using debt collection companies company quickly freed from unreliable partner, but must take into account the high costs of sales receivables. Usually, however, its value is individually negotiated. Moreover, debt collection agencies also provide services related to recovery before recourse to the courts. The effectiveness of recovery depends on, among others, methods of enforcement of receivables and the company's experience.

    In court

    Once exhausted all the possibilities of an amicable agreement with the debtor, is investigating claims in court in proceedings by writ or writ. According to the art. 485 of the Code of Civil Procedure (CCP) in the first case the court issues an order for payment of a monetary claim or provide other things parts, if requests are supported by victim attached to the lawsuit:

        official document,
        accepted by the debtor's account,
        call the debtor to pay and a written statement of the debtor's acknowledgment of debt,
        approved by the debtor demanding payment returned by the bank and not paid due to lack of funds in the bank account.

    It must therefore be properly documented the claim otherwise the lawsuit will be dismissed. By issuing an order for payment the court rules that the defendant is within two weeks of receipt of the order to meet the claim in full, including costs, or to bring charges within that time. Importantly, the injunction against whom no charges filed has the power of final judgment.

    The defendant, who does not agree with the decision of the court and does not intend to settle a claim may, in accordance with Article. 483 KPC bring a letter containing the allegations to the court. The letter indicates the defendant contests the order in whole or in part. He should present the allegations and all the circumstances and evidence supporting them. This could lead to the designation of the trial and significantly extend the life of vindication. The court may decide to maintain order for payment, in whole or in part, set aside the order and decide whether to request a claim or reject a claim or discontinue the proceedings.

    You should know that when a company reaches a monetary claim may assert their claims in the writ proceedings. The creditor has the opportunity to obtain a payment order against the debtor. The court then assess the validity of the claim based on the claimant's evidence przestawionych eg. Invoices certified as a true copy. In case of reasonable grounds, will be released from the office of the payment order. Then, within two weeks of its receipt of the defendant must satisfy the plaintiff's claim in full or in this period to bring to court the opposition. If the debtor does not decide to take this step, the payment order becomes final and can provide a basis for enforcement proceedings. It should, however, reckon with the costs, which in this case depend on the subject matter of the dispute and are estimated as 1/4 x 5% of its value. In practice this is equivalent invoices. If the trial ends once thought creditor, you must submit a request to the bailiff about foreclosure debt. Current track of his work and the potential to help identify the debtor's property may significantly affect its effectiveness. In case of successful execution of the bailiff is obliged within four days pass holder enforced debt.