Unfortunately there are some businesses in Germany who make a habit of using foreign suppliers and service providers to provide goods or services on credit. Since cash flow is very dear to the heart of all businesses, it requires constant attention during most periods of trading. Therefore, it is absolutely essential that businesses are paid on a timely basis for the products or services they have provided to their customers or clients.

If payment is not made, then the non-paying party is implicitly calling into question the continuation of the trading relationship – assuming, of course, that the supplier is not closing its eyes to the problem (in long-standing relationships, this is the case quite often). Where the parties agree terms for payment, whether immediately following a period of default, staged or even installment payments, then the relationship can be preserved. Non payment inevitably leads to a termination of that trading relationship and the parties will then need to resolve the issue of payment. Studies have shown that once an account is older than 90 days, the chances to collect debts are dropping considerably.

Things can get more complicated if your debtor is a private person, moved out of town, has a new unknown address – or uses a new name after being (re-)married. Most foreign businesses are unaware that in Germany the statutory legal fees can be claimed directly from the debtor. This also includes lawyer’s fees that occur for a demand of payment as soon as the debtor falls behind with a payment – before the lawsuit is filed. In Germany, entering into legal procedure is possible without prior warning to the debtor. A subsequent approach by a German Lawyer will make it clear that your company is not only acquainted with the law as to collection of debts in Germany, but also willing and prepared to enforce its rights.

If you cannot reach an amicable solution with your German business partner, then we are prepared and able to assist you in these matters, and even in case of dispute, we are always trying to reach a reasonable and amicable solution between creditor and debtor.

If your debtor does not pay, the Boris Zimmermann law firm commences all necessary legal action and pursues the debt until collection by a bailiff. In a legitimate claim the final judgement obliges the debtor to reimburse all statutory legal fees as well as the statutory interest on the debt. After successful execution of judgement you will receive your complete debt. We can assess your needs and assist you in doing successful business in Germany: Let us handle your debtor so that you can focus on your business. Contact us here.