Recovering debts on your own not only requires extensive legal expertise, but also takes time, necessary for carrying out actions related to debt collection. An entrepreneur who decides to carry out a vindication on their own must remember they would have to bear fixed costs associated with e.g. establishing additional work positions and paying salaries. These costs are borne whether there are debts to be collected or not, and regardless of the result of vindication.
The result of vindicating debts on your own depends on employee knowledge as well as their experience in negotiating with debtors. Practice shows that a large proportion of companies which carry out vindication on their own reduce their activity to office vindication (i.e. sending reminders and pressing debtors by phone), which often fails to bring results. Only then do entrepreneurs decide to use the services of vindicators or law firms. Whereas one should remember that the older the debt is the harder it is to recover.
Professional vindication companies charge for successfully collected debts. This charge is a percentage-based commission for the debt actually recovered, and its amount is usually set individually, depending on the amount and type of debt, as well as actions necessary to perform for recovery.
Some vindication companies charge extra for accepting a vindication assignment (so-called initial payments), which does not depend on the result of vindication.
The form of rewarding a vindication company that is the most beneficial to the customer is a percentage-based commission for successfully vindicated debts. In case the company fails to recover the debt, the customer bears no costs at all.
