Debt collection in Germany

You have an international debt in an international company? As a company, you can open your market to other companies internationally. But if they don't pay, it becomes more complicated to get your money back. Discover fast and efficient debt collection with the Sekundi network.

Germany, a powerhouse of the European economy, presents a unique landscape for debt collection. For businesses operating internationally, understanding the nuances of German debt recovery laws, cultural factors, and best practices is crucial for successful B2B and B2C collections.

At Sekundi, we believe that effective debt recovery hinges on local expertise. This guide provides an overview of the German legal framework, cultural considerations, and strategies to help you navigate debt collection in Germany with confidence.

INTERNATIONAL DEBT COLLECTION

Debt collection worldwide

Relying on many long years of experience, our local experts guarantee the efficient collection of your debts. Sekundi can offer amicable debt collection as well as disputed debt collection by means of legal action.

Sekundi makes it point of honour to treat debtors fairly, even if they themselves have failed to honour the payment of invoices, in order not to endanger the commercial relationship that you cultivate with your clients.

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1

First contact

Send your claims, we will study your problem and your needs.

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2

Send your claims

Tell us in which country you have an outstanding payment, send us your invoice, and let us take care of everything!

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3

Get informed

We keep you informed via Intranet 24/7 on any developments in your accounts and provide reports on the progress of debt collections in the language of your choice.

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4

Recovery costs

Pay on success. A uniform pricing policy throughout Europe : 15% of the amount.

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Be sure to recover your debts internationally

International debt collection in cooperation with the Sekundi network.

International debt collection is a service we offer you when the person who owes you money resides or has its registered office in a country other than yours.

How it works →

The Legal Framework: Understanding Germany's Debt Collection Process

The German legal system offers a structured, albeit sometimes lengthy, approach to debt collection.

1. The Mahnschreiben: as with any debt recovery process, it is important to attempt an amicable procedure, the Mahnschreiben, which consists of four written reminders sent by mail.

2. The Mahnverfahren (Dunning Procedure): This is a simplified, fast-track judicial process for collecting undisputed monetary claims. It does not require a court hearing and is often the first step before a full lawsuit.

·        Application for a Payment Order (Mahnbescheid): The creditor applies to the competent local court for a payment order. This document officially demands payment from the debtor.

·        Debtor's Right to Object (Widerspruch): The debtor has two weeks to object to the payment order. If they object, the process usually moves to a regular court proceeding.

·        Application for an Enforcement Order (Vollstreckungsbescheid): If the debtor does not object within the two-week period, the creditor can apply for an enforcement order. This order is legally binding and equivalent to a court judgment.

·        Enforcement: Once an enforcement order is granted, it can be enforced through various measures, such as seizing bank accounts, garnishing wages, or attaching assets.

3. Regular Court Proceedings: If the debt is disputed, or if the Mahnverfahren is unsuccessful due to an objection, the creditor must initiate a full lawsuit (Klageverfahren). This is a more complex and time-consuming process, requiring detailed evidence and legal arguments from both parties.

NB : In Germany, the general statute of limitations for debt claims is three years, beginning at the end of the year in which the claim arose and the creditor became aware of the circumstances giving rise to the claim (or should have become aware without gross negligence).

Using the international Sekundi network

Approach

Our approach consists of acting from your country with an employee or a service provider who is fluent in the language of the country concerned is not the most effective.

Benefits

You have an interlocutor in your country with whom you communicate and this one is responsible for transmitting your file upon receipt to his local partner who will act according to the customs and rules of the country concerned to obtain payment of your invoice.

Objective

Establish a worldwide network with a strong business partner in each country to guarantee optimum case handling at local level with the respective support of intelligence specific to each country.

Best Practices for B2B and B2C Debt Recovery in Germany

For B2B Debt Recovery:

  1. Clear Contracts: Ensure your contracts with German businesses are meticulously drafted, legally sound, and clearly state payment terms, due dates, and consequences of non-payment.
  2. Early Intervention: Don't delay. Send polite reminders shortly after a payment is overdue.
  3. Maintain Communication: Keep open lines of communication. Sometimes, a payment delay can be due to an administrative oversight that can be quickly resolved.
  4. Leverage the Mahnverfahren: For undisputed B2B debts, the Mahnverfahren is an efficient first step before resorting to full litigation.
  5. Local Expertise: Partnering with a local debt collection agency or legal expert, like Sekundi, is invaluable. They understand the intricacies of German law and cultural nuances.

For B2C Debt Recovery:

  1. Consumer Protection: German consumer protection laws are robust. All collection efforts must be fair, transparent, and comply strictly with legal guidelines.
  2. Professional Demeanor: Maintain a professional and empathetic approach. Consumers are more likely to cooperate if they feel treated fairly.
  3. Installment Plans: For consumers facing genuine financial difficulties, offering reasonable installment plans can be an effective way to recover debts while maintaining goodwill.
  4. Compliance with GDPR: Be extremely careful with personal data. Any contact with the consumer must adhere to strict data protection regulations.
  5. Prioritize Mediation: Before resorting to legal action, explore possibilities for out-of-court settlements or mediation, especially for smaller consumer debts.

You have outstanding debts in another country and having problems getting them paid?

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Why Choose Sekundi for Your German Debt Collection Needs?

Navigating the German debt collection landscape requires a deep understanding of its legal framework and cultural intricacies. At Sekundi, our international network includes experienced professionals in Germany who are well-versed in local laws and practices.

We provide tailored debt recovery solutions that respect German legal standards and cultural norms, ensuring efficient and compliant collection processes for both B2B and B2C claims.

Don't let cross-border debt become a barrier to your business success. Contact Sekundi today to learn how we can help you recover your outstanding debts in Germany.