When you're expanding your business into new territories, it's important to be aware of the local laws and customs. And when it comes to debt collections in Spain, there are a few things you need to know.
The amicable procedure is the most common way to collect a debt in Spain. This is a process where both parties come to an agreement about the repayment of the debt. If this fails, the next step is legal debt collection.
There are a number of benefits to using a local commercial debt collection agency. They have extensive knowledge of the Spanish debt collection process, and they can help you recover debts quickly and efficiently.
In Spain, the debt collection industry is full of surprises – and I'm not just talking about the weather. So, without further ado, let's take a look at 7 things you need to know about collecting business debts in Spain.
What Is the Amicable Procedure in Spain?
When it comes time to collect a business debt in Spain, you have a few different options. You could take the debtor to court, but that can be costly and time-consuming. You could try to negotiate a payment arrangement, but that can be difficult if the other company is struggling financially.
Or you could try the amicable procedure. This is a process whereby you work with a lawyer to notify the debtor of the debt by phone and in writing. If they fail to pay, you go through an extrajudicial phase without court intervention. This is your first amicable attempt to claim the debt and draft payment agreements.
If the debtor does not comply with the amicable procedure, the creditor must initiate a judicial procedure. This allows them to gain access to the debtor’s assets if the debt is not paid. Ultimately, the amicable procedure is the most efficient and inexpensive method of gathering debts in Spain, and it helps preserve relationships doing so.
The amicable procedure is also advantageous because it helps establish or maintain relationships between the two companies. By going through an amicable procedure, the debtor can avoid getting sued, which is beneficial for both parties. Additionally, creditors can be more sympathetic to the debtor’s situation and therefore try to negotiate a payment plan that works for both parties.
Furthermore, the amicable procedure is relatively fast, meaning the debt can be collected quickly. It also allows creditors to have more control over the debt collection process and to receive payment faster. This is beneficial for avoiding lengthy lawsuits and to receive their money quickly.
Steps for Legal Debt Collection in Spain
When it comes to collecting business debts in Spain, there's no need to go "au naturale".
In fact, the process is a lot more formal than you might think.
Legal debt collection processes in Spain are a sensible and cost-effective approach, and can actually be completed quite easily. To start, the creditor and debtor should enter into negotiations and agree on terms to pay the debt. If that is not possible, then creditors can take the matter to court and seek a judgment for the debt. This process can be lengthy, which is why it is usually best to come to some kind of agreement prior to entering into court proceedings.
Once a judgment is made, the creditor may have the ability to have the debt enforced by filing for an enforcement order, which will then be processed by the court. This process can involve having the debtor's assets confiscated and sold in order to repay the debt. The court can also take action against the debtor's wages, bank accounts and/or other financial assets. Furthermore, the court can also impose a travel ban, which prevents the debtor from leaving the country until the debt is paid in full.
If the debtor still has not settled the debt after the enforcement order has been granted, the creditor may pursue further legal action against the debtor. This can include a request for bankruptcy or insolvency proceedings, which is the ultimate legal remedy against non-payment. The creditor must provide evidence of the debt and the debtor's failure to pay in order to be granted such an order, although this is a lengthy process and may not result in the full recovery of the debt. Finally, the creditor may engage a debt collection agency to pursue the debtor for the debt, however this may come with a cost associated and does not always guarantee successful results.
In order to initiate debt collection proceedings in Spain, you must first fill out Form A and send it to the debtor. Once you've done that, you'll need to appoint a legal representative (or "procurador") who will act on your behalf in court.
Now, before you go any further, it's important to note that you should always try to negotiate with the debtor amicably. Only after all attempts at negotiation have failed should you proceed with legal action.
Once you've engaged a legal representative, they will typically submit a summons on your behalf along with supporting documents. The process of debt collection will then begin, with the debtor given a certain amount of time in which to respond. Depending on the response, the legal representative will then decide whether to proceed with a “judicial demand” or a “judicial injunction”.
A "judicial demand" is a formal document sent to the debtor that must be responded to within a certain period of time. In this case, if the debtor ignores the judicial demand or is unable to respond adequately, then the case can be referred to the court. A "judicial injunction" is a court order that orders the debtor to pay the debt immediately.
If the debtor fails to respond to either a judicial demand or a judicial injunction, then the legal representative may decide to take further action. This could include freezing the debtor's assets, starting a garnishment process, or attempting to collect on collateral. Depending on the outstanding debt, the legal representative may also try to seize the debtor's property. Of course, it's important to note that these measures should always be a last resort.
Benefits of Using a Local Debt Collection Agency
There are plenty of great reasons to use a local debt collection agency when trying to collect a business debt in Spain. For starters, the Spanish “order for payment” process is an effective way to get your money back. And since Spanish legislation requires you to inform the debtor of the debt, you can be sure that they’ll know about it – which may lead to them paying up quicker.
Plus, the FTC enforces the Fair Debt Collection Practices Act, meaning that any debt collectors working with a local agency in Spain must adhere to certain rules and regulations. This can help keep your business dealings with Spanish debtors civil and stress-free.
So if you’re looking for a hassle-free way to collect a debt in Spain, using a local debt collection agency is definitely the way to go. Just be sure to do your research first so you can find the best agency for your needs.
Finally, when it comes to collecting business debts in Spain, there are certain advantages to using a local debt collection agency. Local agencies can provide you with access to the necessary resources and tools, such as document retrieval and legal support, to help you collect the debt in a timely manner. Furthermore, local debt collection agencies are often more familiar with the language, culture, and laws in Spain, making them better equipped to collect a debt. This can ultimately lead to a quicker turnaround time in the debt collection process.
In addition, local debt collection agencies can help you save time and money. For example, you can avoid the hefty legal costs associated with taking a debt to court if you choose to work with a local agency. Plus, the debt collection agency can provide you with reports on your debtors, so you can stay up to date on the status of each account. This can help you make decisions on how to best manage your debtors, based on the most up-to-date information.
Intercol: Professional, Experienced and International Debt Collection Experts
You need someone you can trust to take on the heavy lifting for you in Spain. Intercol has a long history of debt collection in Spain – and even more importantly, they know the rules and regulations that apply there like the back of their hand. With more than 25 years of experience as international debt collection experts, they have the knowledge, skills and resources to provide exceptional results on behalf of their clients.
Intercol is also knowledgeable about other forms of debt collection processes in Spain, such as amicable procedures. This means you can rest easy knowing that your business’s interests are in good hands. Plus, they’re so confident in their services that if their debt collectors don’t get results within 6 months…you won’t pay a cent! That’s a funny fact about debt collection in Spain.
The team at Intercol also speaks a plethora of languages, making it easier to communicate with debtors and their representatives. This kind of multilingual fluency is essential to successful debt collection in Spain, as the country is full of diverse cultures and languages. Plus, Intercol’s services are completely confidential, meaning your debtors will never know that you’ve called in the professionals to help.
In conclusion, Intercol is the perfect choice for your debt collection needs in Spain. With their knowledge, expertise and experience, you can be sure that your debt collection in Spain will be handled with the utmost of care. Plus, Intercol’s commitment to getting results in a timely manner is second to none. So don’t hesitate to give them a call today to get started on your debt collection needs in Spain.
What Is the Process of Collecting a Business Debt in Spain With Intercol?
The process with Intercol is simple and clear. First, you need to register your claim with us. Once we have all the necessary documents and information, we will get to work in collecting the debt. We will contact the debtor and try to reach an amicable solution that works for both sides. If that doesn't work, we can move forward with legal debt collection procedures. The whole process takes about 90 days, after which you should expect your money!
During the process, we will inform you of the progress and will keep you updated on a regular basis. We have many years of experience in international debt collection and have established a vast network of attorneys in many countries. This gives us the advantage of being able to pursue debtors wherever they might be. The process of debt collection in Spain is secure, reliable and fast when using Intercol.
In addition to the debt collection process, we also provide our clients with interim credits to assist them in their business operations. This helps make sure that they have access to the money they need while collections progress. The interim credit process is easy and secure, and it helps our clients during the debt collection process.
Finally, Intercol offers our clients the option to buy-back outstanding invoices for a fraction of their total value. This can help them get the cash on hand quickly and reduce the time it takes to collect a debt. Our team of experienced professionals is available to assist in determining the best solution to fit any particular case. We strive to ensure our clients are always satisfied with the results.
Oh, and here's something funny about debt collection in Spain – it's a lot like trying to collect wine from a cask. If you don't act quickly enough, it'll all be gone before you can get your hands on it!
A Funny Fact About the Debt Collection Industry in Spain
Did you know that in Spain, debt collectors are known fondly as 'papabolas' or 'pingüinos'? That's because they usually carry a briefcase and a stack of papers around with them, which makes them look like penguins waddling around with a fish under their flipper!
Not only are these debt collectors entertaining to watch, but they also provide an important service to businesses. Although their methods may seem humorous, there is no denying that they are highly successful in collecting debts in Spain. So next time you think of the Spanish debt collection system, don't forget to give them the credit they deserve—for the sake of all those papabolas and pingüinos out there!
So if you're ever on vacation in Spain and someone doesn't return your waves, it might be because they're busy collecting debts for their business.
But seriously, if you're ever unfortunate enough to have a debt in Spain, don't worry, there are plenty of commercial debt collection agencies that can help you get your money back. And, in case you were wondering, Spanish debt collectors are some of the best in the business—they know all the tricks to get your money back, and they're not afraid to use them!