How to collect debt?

Notes on debt collection text messages are as follows:

1. Choose a qualified debt collection counterparty. In the process of collecting accounts receivable, enterprises should select a qualified collection entity. The counterparty for collection is generally determined mainly based on the contract, but it is also necessary to pay attention to the special circumstances where the counterparty changes due to the transfer of claims and debts after the signing of the contract.

2. Analyze guarantee methods. During the collection process of accounts receivable, some debtors and creditors will reach an agreement and a third party will provide guarantee. At this time, the company should focus on the third party’s guarantee qualifications, guarantee capabilities, guarantee contracts, etc. It is necessary for the enterprise to hire a lawyer to conduct necessary review of the guarantee contract.

3. Pay attention to the statute of limitations. In practice, many companies have had their applications filed for litigation against years of backlogged accounts receivable being rejected by the courts, partly because they missed the two-year statute of limitations. In order to prevent limitations on the statute of limitations, in addition to regular collections, companies should also make full use of the clause that interrupts the statute of limitations. Common practices include filing lawsuits and sending written letters such as reminder letters to the debtor.

4. The role of payment order cannot be ignored. When the relationship between creditor and debt is relatively clear and the other party lacks the willingness to repay, the company can apply to the court for a payment order. The payment order has the advantages of not going through litigation procedures, quick settlement, and low litigation costs. However, attention must be paid to the strict conditions to which payment orders apply.

5. Pay attention to the other party’s property clues. Once an enterprise initiates litigation or arbitration proceedings, in order to prevent a situation in which it wins but has no property available for enforcement, the enterprise should pay special attention to the property information of the other party and submit a written application for property preservation while submitting the complaint to the court.

6. Do not take illegal measures such as detention. Some companies took illegal measures such as tracking and detention during the collection process. Not only did they fail to collect debts, but they also violated relevant provisions of public security penalties and criminal laws, and they lost both their wives and soldiers. Therefore, enterprises cannot take drastic measures during the collection process and must protect their creditor's rights and interests through legal channels.