The European order for payment: a quick solution for defaulters
Defaulters have a major impact on the proper functioning of your company. Late payment is more than once a cause of insolvency, and therefore poses a real threat to your company. Still, collecting the debt can feel like a threshold, is the result worth the cost and time?
If the debtor is also a foreign company, this can certainly feel like an obstacle. However, this does not have to be the case, the European order for payment offers a quick and cheap solution to collect debts.
What is the European order for payment?
Does your company have a pecuniary claim on another company that is also established in an EU Member State and has this claim never been disputed? In that case, the European order for payment can most likely offer a solution.
The European order for payment procedure was created by the European Union. This procedure makes it possible to collect undisputed claims quickly, efficiently and cheaply. Courts of Member States of the European Union can issue such an order for payment and, moreover, the Member State where the debtor is established will recognize and execute this order. In other words, there are no additional formalities, so a separate declaration of enforceability is not required.
Moreover, the debtor cannot oppose the recognition of the order in his country, which only benefits the speed of the procedure.
Where can you go?
Since, by definition, at least one party is established in another EU Member State, it is of course important to know in which country you can go. The place of delivery of the goods, the place of performance of the contract, and the general terms and conditions (particularly a forum clause) are important points of reference.
Do you have questions about this procedure?
Do not hesitate to contact us, we will be happy to assist you in writing to the competent court and carrying out this procedure.