Debt Collection in Corona Times
The difficult times facing humanity in combating COVID-19 pandemic are well known. It’s not only causing growing health problems, but is also threatening the global economy, and the paradoxical balance of what is best for the public health can be the worse for the economy is, undoubtedly, a challenge for all countries.
Some companies have come to a complete halt, others, though remaining operational, are forced to work in very different and costly ways. In one way or another, the financial consequences will have a huge impact on business around the world.
In Portugal, the big economic fringe is made up of small and medium-sized companies that needs to be attended.
Since CASTILHO is a specialist in Debt Collection, it could not fail to adopt fair and appropriate measures to face this situation without neglecting the best interests of the Creditors, most of them equal players in the market.
We have mostly extrajudicial solutions which greatly benefits us in this period. Since many countries were confined it affected the judicial system and all European courts in general the same way, only dealing with very urgent processes, and only now they have started a progressive activity due to the procedural deadlines.
In this article, as international lawyers, we explain what the current status of your country is, and how the courts work best.
Thus, there are strategies depending on the country where they operate, but in general, they will have the fundamental guarantee of confirmation that the debtors will receive the communication in excellent conditions allowing them to resolve disputes and quickly negotiate payments beneficial to the company’s financial wellbeing or to the economy in particular. Commitment is the key.
Investigating, whether the real reason for non-payment and / or postponement of payment is caused by COVID-19 is basic and understanding a little the reality of each debtor is equally important.
More than ever, humanized / responsible professional action will make all the difference in payment and non-payment, as well as in the future market positioning.
Senior Lawyer | Associate