Optimized recovery works because:-

It provides strong payment incentives

It is fast, cheap and simple

It is seen by debtor and court as a fundamentally fair approach

You control progress and payment comes direct to you.

 

Have the Courage to challenge conventions

Hans Christian Anderson's tale of the Emperor's new clothes warns us against ignoring what we know to be true due to convention stemming from the self interest of others.

Cutting through the flim flam there are only 2 ways to get paid; Either your customer decides to pay you or he is forced by law to pay you. Logic suggests that you give an incentive to pay whilst keeping your legal enforcement option quick, cheap and visible.

The longer you delay, the harder the debt is to get in but the shorter the delay the more legal action seems inappropriate.

Late Payment Law enacted under the EU Payment Directive resolves your dilemma. Late payment interest and compensation are very substantial.  Use them as payment incentives, not pocket liners.

Don't demand late payment penalties from the outset (like debt collectors do, just to fatten commission). Don't hide penalties away, like solicitors do, for fear debtor pays before litigation!

Instead send an optimized letter of claim.  It calculates your late payment penalties and the court fee on that date. It shows the customer your claim is ready for issue. It informs the customer he can avoid these penalties and legal proceedings by paying the debt in full in 7 days.

Figures, especially money, engage attention much more than words.  Seven days grace to avoid the penalties moves inertia without touching the stubborness in people.  If they still don't pay, or contact you with a reason, you know they have no intention of paying. Only then do you issue a claim for everything the Late Payment Directive gives you.