Debt collection in Poland

Do you have an international debt with a Polish company? Experience fast and effective debt collection in Poland with the Sekundi network.

What are the relevant legal procedures to recover outstanding debts?

The basic legal tool is a lawsuit for payment in order to obtain the enforcement title necessary to initiate enforcement proceedings, which in Poland are carried out by bailiffs. In the case where the debtor owns the property, a forced mortgage can be registered.

It is also possible to file for bankruptcy of the debtor or a ban on the debtor's business (in the case of companies). Less frequently used, but in some cases necessary, is the notification of the law enforcement authorities of a suspected crime and, in the event of a charge, the conduct of a trial in criminal court.

Develop an effective debt recovery strategy

An effective debt collection strategy should take into account the specific characteristics of the debtor: resulting at least from the industry in which it operates, its size, legal form and the market in which it operates. Of course, the more characteristics of the debtor are known, the better the appropriate debt collection strategy can be tailored.

To give an example: in the case of an entity cooperating with public institutions and participating in tenders, the mere threat of being entered in a database of unreliable entities (Economic Information Bureau) may be one of the stages of debt recovery and even an effective one, while it makes no sense in the case of an entity offering its services to retail customers and buying materials and tools mostly for cash.

As you can see, the more you know about the debtor - the more effectively you can act.

Management of relationships with foreign debtors

Polish debtors owed to foreign entities are often characterised by a lack of contact. In the majority of cases where fieldwork was carried out at the debtor's address, contact details were established.

In the case of debtors with whom there is contact, the method of paying off the debt by instalments is, in most cases, the optimum solution as it does not generate costs for the creditor associated with, for example, court or enforcement proceedings against the debtor.

Current debt collection statistics in Poland

Debt collection in Poland is carried out by a wide variety of entities from very large to very small, plus law firms. The market is unregulated and, as a result, there are no reliable statistics on debt collection.

Typical profiles and types of debt collection clients

We serve clients from a wide variety of industries:

  • e.g. construction, installation, consulting, transport services
  • sale of building, industrial and agricultural supplies
  • manufacture of materials and equipment for households and industry
  • residential and commercial leases.

Frequently asked questions about debt collection in Poland

What are the costs and fees associated with debt recovery?

Most cases completed amicably are based on success fees only. The handling of cases that are significantly overdue, complex and end in unsuccessful debtor enforcement may be associated with additional costs, e.g. for specialised analysis.

The costs associated with court proceedings are primarily the costs of the fee for a claim filed with the court. The costs of standard legal services arise directly from the concluded debt collection mandate contract and other expenses are consulted with the client on a case-by-case basis.

How can data be used to improve debt collection processes?

By analysing, among other things, the length of time the case is overdue, the type of debtor, the type and amount of the debt, whether there has been previous debt collection, the location of the debtor and how the debt is documented, cases can be grouped and only those tools can be applied that can have a measurable effect without incurring costs for activities that are doomed to failure in the case in question.

How can I measure the effectiveness of my debt collection strategies?

A comparison of the effectiveness of debt collection before and after the implementation of the changes, taking into account the cost of the changes, will show a result evaluating the effectiveness of a given debt collection strategy.

How to automate debt collection processes to make them more efficient?

In the case of B2C mass debt collection, well thought-out, automated debt collection processes will be successful in most cases. Automation in a high-volume B2B case can be very damaging. A large proportion of such cases require individual attention.

How to manage risk?

In addition to internal controls to effectively manage file risks, competent staff, constant monitoring of regulatory developments and adaptation of appropriate legal and recovery tools are needed.

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