New collection method shortens payment period and avoids costly litigation

SME Netherlands suffers from increasing payment terms

Payment terms for B2B invoices increased by 5 days in 2018 compared to 2017 and now average 46 days*. The percentage of overdue payments is not decreasing and amounts to over 33%. Entrepreneurs within SMEs are particularly affected by this. To prevent entrepreneurs themselves from getting into dire straits due to overdue payments, sometimes even credit facilities have to be extended. Something that is far from always possible. To shorten payment terms and avoid costly procedures, the law firm Beverwijk Van Gilst is now introducing a new online collection method.

Legal tech developed by experienced debt collection lawyers

Beverwijk Van Gilst offers all its debt collection experience in its new online debt collection service. The legal tech developed for this purpose came about in cooperation with internet agency Simplefly. With this service, entrepreneurs reduce the number of overdue payments, shorten payment terms and avoid expensive collection procedures. The collection service is easily activated online. "Although our collection service is offered online, our approach is very personal," states Lucas van Gilst, attorney at Beverwijk Van Gilst Advocaten, "the written and telephone contacts with debtors are handled entirely by our experienced collection lawyers. The advantage of this is that, if a debtor does not eventually fulfill his obligations, there is already a complete file."

Active collection policy

According to Van Gilst, many business owners are reluctant to initiate proceedings. The costs are high and regularly exceed the amounts to be collected. Therefore, litigation is often avoided. But in order to avoid litigation and to ensure that payments are made in accordance with the payment term, the entrepreneur must pursue an active collection policy. Besides the time this takes, its effectiveness is often limited. "Customers who pay slowly are often not impressed by the collection activities of suppliers," states Van Gilst, "it is considered normal to receive four to five reminders. And many business owners find handing over the debt difficult, because it can permanently disrupt the relationship with the customer. With our new debt collection service, the entrepreneur can leave everything to us from the 14-day letter. On behalf of our firm, so that relationships are not damaged and with a correct, legal approach that has proven to be extremely effective."

Preventing water from reaching lips

The increasing payment period and the fact that the number of outstanding claims just won't go down, is causing problems for many SME entrepreneurs. Reason for MKB Nederland to knock on the door of State Secretary Mona Keijzer of Economy and Climate to legally shorten the payment term to 30 days. Van Gilst: "Entrepreneurs who are poorly paid are themselves slower to pay. A vicious circle that must be broken. With our collection service, the entrepreneur can choose a basic, extended or full package. For fixed amounts, we take care of the entire process. And because our name is on the letterhead from the first contact, this approach is extremely effective. Rogier Hendrikx of the Kindcentrum Hansje Stoffel Foundation in Delft is happy with Beverwijk Van Gilst's approach: "Via the online form, the necessary details are very easy to fill in and the personal follow-up is extremely effective. This service takes a lot of worry out of my hands as an entrepreneur."

*Figures from financial services provider Atradius