Got questions about debt collection?

Have you sent a reminder via post or email? Have you tried contacting the debtor by phone? It's essential to have proof that you reminded the debtor. You can also use WhatsApp to send a reminder—if the double blue check marks appear, you know the message has been read. If there's still no response, consider sending a final notice. However, it's wise to consult with a professional before taking further steps. An expert can save you valuable time and resources.

Yes, this situation is quite common. No, you're not the first to experience it, and yes, you are still entitled to payment (depending on your country’s laws). However, you must be able to provide proof of the order and ensure it was made by someone with the appropriate authority. Sometimes, debtors may feel protected due to the lack of a formal contract, but this doesn’t always hold up in court. Consulting an expert can help provide clarity and save you both time and money.

Many companies choose to outsource their invoice management to Straetus. We handle all aspects of this process, including sending reminders, issuing final notices, and managing debt collections. Straetus takes the necessary steps at the appropriate time, tailored to the specific profile of the debtor, client, or product involved. Our expertise ensures that collections are handled both efficiently and effectively, helping to reduce overdue payments and improve cash flow.

We always ask our clients a few key questions: Is this a new client or has this happened before? Is there a dispute over the goods or services? These are just a few examples of the questions we consider. The best advice we can offer is to contact Straetus for a free consultation with one of our debt collection specialists.

In most countries, including Luxembourg, you may be able to claim VAT relief on unpaid invoices. However, Luxembourg requires that you prove you have taken reasonable steps to collect the payment. This includes sending reminders and possibly initiating legal proceedings. Additionally, you must demonstrate that the debt is irrecoverable, typically by showing that the customer has gone bankrupt or is otherwise insolvent.

It’s important to keep in mind that Luxembourg’s tax authorities may require you to wait for a certain period before you can write off the debt and claim the VAT back. The rules can be strict, so it’s advisable to consult with a VAT expert to ensure you meet all the necessary conditions

Yes, you can take legal action for an unpaid invoice. The process involves obtaining an official legal judgment, which grants you a legal claim against the debtor. This verdict is essential for enforcing payment. Straetus can assist you throughout this process, ensuring that everything is handled professionally and efficiently.

No, unpaid invoices are not tax-deductible. You must first officially write off the unpaid invoice as a bad debt in your accounts. Only then can you adjust your tax records accordingly, depending on the local tax laws and procedures.

Straetus advises clients to implement a clear collection procedure and stick to it. A solid credit management strategy considers all potential outcomes. One key tip: do not send more than three reminders. The third reminder should act as a final notice. If the debtor still hasn’t responded, it’s time to forward the unpaid invoice to a debt collection agency.

Straetus manages these procedures on behalf of its clients. Together, we establish a collection plan that outlines which steps to take and when they should occur.

It's also important to stay ahead, as credit management is continuously evolving. For expert guidance on invoice management and debt collection, request a free consultation.