{"id":65816,"date":"2023-08-24T11:43:44","date_gmt":"2023-08-24T10:43:44","guid":{"rendered":"https:\/\/www.cashontime.com\/en\/?p=65816"},"modified":"2025-04-18T16:29:03","modified_gmt":"2025-04-18T15:29:03","slug":"amicable-collection","status":"publish","type":"post","link":"https:\/\/www.cashontime.com\/en\/articles\/amicable-collection\/","title":{"rendered":"The complete guide to amicable debt collection"},"content":{"rendered":"

Has one of your customers failed to pay an invoice on time? Are you wondering how best to obtain payment without offending your customer? Amicable collection is the first phase of debt collection<\/a>. It involves setting up a debt collection process aimed at finding an amicable solution with the creditor. This may involve immediate repayment of the unpaid invoice, or an agreement to grant additional time for payment, or to set up a payment schedule. In all cases, amicable debt collection is based on communication between the creditor company and its debtor customer. But how does amicable debt collection work in practice? What are the main stages in the amicable debt collection process? Here are all the explanations and advice you need for successful out-of-court debt collection.<\/p>\n

Would you like to send a dunning letter to your creditor? Download our dunning letter template, fill in the essential information and send your letter.<\/strong><\/p>\n

\"amicable<\/a><\/p>\n

The advantages of amicable debt collection<\/h2>\n

Amicable collection is a very advantageous type of collection<\/a> for a company.<\/p>\n

Indeed, the primary advantage of amicable debt collection is that it helps maintain good relations with customers. Amicable debt collection actions are carried out in such a way as to maintain communication and preserve the business relationship. Delay may be due to a simple oversight or to a delay in accounting processing. It is therefore preferable to avoid threatening the customer with legal proceedings or late payment penalties from the very first exchange after the invoice due date.<\/p>\n

This also goes hand in hand with preserving the company\u2019s reputation. Legal proceedings are never good for a company\u2019s image. Amicable debt collection allows you to be more discreet.<\/p>\n

Amicable debt collection is quick and easy to set up. What\u2019s more, if a good amicable debt collection process is deployed within the company, efficiency is guaranteed. It\u2019s a method that pays off when it comes to reducing payment delays.<\/p>\n

What\u2019s more, setting up an amicable collection procedure<\/a> is less costly than taking legal action.<\/p>\n

The final advantage of amicable collection is that it makes it easier to win the case if it ultimately goes to court. If, despite the creditor company\u2019s best efforts, amicable collection efforts have failed, the judge will be more inclined to rule in the creditor company\u2019s favor if all the legal elements are present. It is therefore important to be able to prove the efforts made to find an amicable solution.<\/p>\n

Amicable debt collection offers many advantages. However, to benefit from it, the company must master the way it works and know the key steps to follow.<\/p>\n

How amicable collection works<\/h2>\n

Communication with the debtor is the cornerstone of amicable debt collection. Indeed, to find an amicable settlement, it is essential that the parties \u2013 creditor and debtor \u2013 are able to communicate cordially and in good faith.<\/p>\n

\"recouvrement<\/p>\n

This is why the creditor\u2019s amicable collection actions must be both clear and firm on the need to obtain payment of the debt, and open the door to negotiations if necessary.<\/p>\n

Depending on the customer\u2019s financial situation, he or she may not always be able to pay the debt in full immediately. It is therefore advisable to assess the customer\u2019s financial situation, in particular by consulting the debtor\u2019s sirene status notice. The aim is to give you an idea of what may or may not be possible, and to protect the company in the event of the situation developing into a collective procedure (safeguard, reorganization or judicial liquidation).<\/p>\n

Depending on the financial situation of both the debtor and the creditor, the parties can negotiate different terms for payment of the outstanding debt. In most cases, the agreement concerns the granting of an additional payment period, or the setting up of a payment schedule. It is strongly recommended to formalize this out-of-court settlement agreement in writing. In addition, conditions can be attached to the agreement, such as the suspension of new orders pending full payment, or cash payment for all new orders.<\/p>\n

Should the debtor fail to meet its commitment, the creditor may terminate the amicable agreement and initiate another collection procedure, such as forced collection or judicial collection.<\/p>\n

Key stages in the amicable collection process<\/h2>\n

\"recouvrementEven if it\u2019s an amicable collection procedure, it\u2019s essential to respect the key stages of the amicable collection process.<\/p>\n

On the one hand, this maximizes the chances of recovering the debt, and on the other hand, it facilitates proof if the dispute has to go to court at a later date.
\n
\n<\/p>\n

The main stages in the amicable debt collection process are :<\/p>\n

    \n
  1. verification of information relating to the claim ;<\/li>\n
  2. initial contact with the debtor ;<\/li>\n
  3. Dunning ;<\/li>\n
  4. proposing repayment solutions;<\/li>\n
  5. regular monitoring of commitments ;<\/li>\n
  6. sending a letter of formal notice.<\/li>\n<\/ol>\n

    Verification of claim information<\/h3>\n

    The first step in an amicable debt collection procedure is to check the information relating to the debt.<\/p>\n

    Before contacting the customer to notify him or her of late payment, it\u2019s a good idea to check that the invoice is indeed overdue. Failure to do so risks irritating your customer and damaging the company\u2019s image. So if the invoice status has just been changed to unpaid, you need to check the latest payments received to make sure you\u2019re up to date with payment tracking.<\/p>\n

    Using collection software like CashOnTime not only makes it easy to track the status of invoices, but also to link them to cash receipts. Then, when an unpaid invoice is detected, a series of actions can be initiated automatically thanks to automation.<\/p>\n

    Automate your debt collection with CashOnTime.<\/strong><\/p>\n

    DISCOVER THE SOLUTION<\/a><\/p>\n

    En outre, il est essentiel de v\u00e9rifier que la cr\u00e9ance remplit les conditions l\u00e9gales pr\u00e9vues par le Code civil avant de pouvoir lancer une proc\u00e9dure de recouvrement amiable. Par exemple, la cr\u00e9ance doit \u00eatre certaine, liquide et exigible, et non prescrite.<\/p>\n

    Ce n\u2019est qu\u2019une fois ces v\u00e9rifications d\u2019usage effectu\u00e9es que vous pourrez passer \u00e0 la deuxi\u00e8me \u00e9tape du processus de recouvrement amiable.<\/p>\n

    Premier contact avec le d\u00e9biteur<\/h3>\n

    \"relances<\/p>\n

    The initial contact with the debtor company is crucial in the event of an unpaid invoice. You need to be both firm and cordial.<\/p>\n

    You can inform the debtor of your late payment by telephone or e-mail. These methods are less formal than a letter, for example, and provide a rapid response. They are also very effective for initiating discussion and understanding the reasons for the unpaid debt.<\/p>\n

    Dunning<\/h3>\n

    There is no legal requirement to send out reminders for unpaid invoices. However, it is strongly recommended that you adopt this practice. Firstly, because it often helps to find a rapid solution and therefore reduce the time taken to pay outstanding invoices. Secondly, because it demonstrates the creditor company\u2019s willingness to find an amicable solution. This will be appreciated by the judge if amicable collection fails and compulsory collection proceedings are initiated.<\/p>\n

    Dunning notices can be sent by :<\/p>\n