what we do

The concept of "debt collection" includes multiple actions of document and accounting analysis, reconciliation and administrative verification, counterparty contact, warning, monitoring, legal activity (monitoring, enforcement, cognition), including the structuring of effective business processes to govern unpaid debts and monitor average payment times (DSO).

In a nutshell: the debt collection activity consists of a wide range of services focused on the objective of recovering all the sums that the creditor has right to receive, considering the non-performance of the counterparty or external causes to be investigated and verified.

Debt collection and credit management is an essential issue for every corporate structure, which gives rise not only to compliance obligations and entrepreneurial managerial responsibility (see also the issue of adequate structures and the timely identification of possible critical elements, as prescribed by the law), but above all the well-being of the company itself and the financial balance of the company.

Recovery activities can also be started on a single unpaid receivable (consisting of one or more unpaid invoices); in general, however, client companies have more receivables to recover, in their country or abroad: we can manage even very significant receivable portfolios, providing for a management escalation (from an initial out-of-court phase to a pre-judicial and judicial one).

We build recovery strategies for companies (in particular: for large structured groups) also in continuous and revolving form: in this hypothesis we become a stable support for the CFO and for the internal administrative or legal department, becoming an important tool for management control and the structuring of solid and effective business processes. At the same time, we always keep the focus on the issue of the accessibility of debt collection services to SMEs, which constitute – as is well known – the backbone of many countries.

Exports are essential for the growth of turnover and business development, but it is possible that invoices issued to foreign customers are not paid (or suffer payment delays).

Through a foreign debt collection activity, pre-legal and legal strategies are initiated to collect the sums due. Obviously, the need to recover a credit can also arise from a contractual issue other than the supply of goods or services: even in that case, it is possible to promote an activity aimed at collecting the sums owed by the foreign counterparty.

Recovering a debt abroad involves greater difficulties than operating at a national level: in fact, there is a need to operate in a different context and in a different legal system, in a different language (important: Invenium Legaltech speaks all the languages of the main export markets): information on the "state of health" of the debtor (whether he is a natural person or a judge,  a company) are easily accessible. International debt collection is therefore a highly complex area in the credit management sector: a legal-administrative process that requires strong skills and solid strategies.

Foreign debt collection can be initiated in an out-of-court or judicial context: even in the event that the creditor already has a judgment (or an injunction decree that can no longer be enforced), a very often long and expensive procedure is necessary to make this title valid in the foreign country as well; It is even possible that the bond has no value in the debtor's country.

The same applies when the contract between the parties (operating in two different countries) refers the resolution of each dispute to an arbitrator or an arbitration panel: time is generally shorter than in an ordinary judicial proceeding, but costs can be really significant and objectively unaffordable for most exporting SMEs. For this reason, Invenium Legaltech supports large and small companies with the aim of maintaining an out-of-court management, faster and less expensive than an international judicial procedure.

Asking and wondering about the cost of a service before using it is absolutely correct. However, there are areas in which it is simple or relatively simple to give a short, clear, unambiguous answer. In the case of debt collection, it is necessary to clarify:

1) in case of out-of-court activities (contact, reminder, warning activities that do not include a judicial activation, a lawsuit) it is possible to provide very linear and unambiguous indications: Invenium Legaltech supports the creditor by favoring a "success fee" pricing. The fee for recovery activities, therefore, corresponds to a share of the sums recovered: only a very modest part of the fee (the so-called "entry fee") is fixed, and not linked to the collection. The cost of debt collection activities is formulated on the basis of objective elements: country of reference, complexity of the legal system, amount of the credit, age of the invoices, presence of disputes;

2) In case of legal actions - especially in the international arena - fixed costs also increase considerably, and a complex assessment is essential, which is carried out together with the our lawyers. It’s critical to keep in mind that in the event of an opposition, the cost of the judgment may increase significantly, and time taken to litigate may also increase. Moreover, even after a full success of the monitory or cognizance judgment, the debtor counterparty may not pay, may not want to pay. In this case, additional enforcement judicial activities are required, which entails additional costs and time.

That is why – in case of the question "how much does debt collection cost" - it is incorrect - particularly in the judicial field - to answer in a simplistic and schematic way. The client must always understand the level of risk and complexity of an international judgment: for this reason, Invenium Legaltech's goal is to recover the credit without starting a judgment, favoring out-of-court strategies.

Our out-of-court debt collection mandates typically last one or two quarters: these are the sensible times that a company expects to build a recovery strategy. However, these are targets, and it’s objectively impossible to be sure that the credit will be recovered: it is possible, in fact, that even an excellently carried out recovery activity does not lead to the recovery of the credit, which depends on factors external to the creditor and the credit manager.

If in Italy there are, for instance, several limitation periods (see Article 2946 of the Italian Civil Code and following), all over the world there is a vast variety of terms and indications: it is necessary to start a specific legal analysis, which looks not only at the debtor's country of reference but also at the applicable legislation in the specific case. A clarification: in the United States - in particular - it is necessary to examine the legislation of each individual state that constitutes the federation in order to know exactly when the credits are time-barred.

As far as judicial activities are concerned, however, it should be noted that the duration of legal actions can involve years (and not months!): not only in Italy – where the need for a more streamlined and effective management of judicial procedures is known – but also (and above all) in a transnational context. Without prejudice, of course, to the hypothesis of an amicable settlement during the proceedings: seeking a settlement and out-of-court solution also in court corresponds to the real interest of the parties and - first and foremost - of the creditor.

The length of legal actions varies from country to country, depending on the type of legal activity, the complexity of the case and any appeals by the parties. It is essential to understand that judicial activity involves great risks not only in terms of the outcome of the case, but also in terms of costs and duration.

We have a team of lawyers and professionals all over the world: 250 lawyers and legal consultants specialized in every continent and in more than 100 countries, in different product areas (Pharma, Machinery, Food, et cetera). We are able to build effective and competitive processes and pricing, supporting large companies and also exporting SMEs.

At Invenium Legaltech we also deal with disputed receivables: it is necessary to investigate the causes of the dispute, start a discussion with the counterparty and build a working table that aims to define the dispute. Only at a later stage, in general, is it possible to think about a judicial escalation. In this respect, Invenium Legaltech differs from many competitors, who accept management mandates only in the case of uncontested invoices.

Contact us, if you wish, to start a specific analysis regarding the dispute you have to manage.

When the creditor "assigns", transfers the ownership of his claim to a third party (the so-called "assignee"), we are faced with a completely new legal situation. The creditor, in fact, is no longer the holder of the credit: the credit enters the legal sphere of a new subject (to simplify as much as possible, the credit is "sold"). It is then possible that the assignment is definitive (the so-called "non-recourse assignment") or subject to the fulfillment of the debtor counterpart.

In any case, the difference is extremely important: in the case of "management", the person who manages the credit does not become the "owner", the holder of the credit: he has the task of carrying out all the activities aimed at recovering the credit, which, however, always remains in the hands of the principal.

In the case of assignment, the new holder (the "assignee") is the "owner" of the claim, he is the new holder.

It is important to point out that only in specific cases can the market satisfy a need for credit assignment; On the other hand, the scenario and strategy of a credit management activity is much more frequent, in particular thanks to the innovative and accessible approach of Invenium Legaltech.

As far as the area of credit assignment is concerned, Invenium Legaltech acts as an advisor, considering that only a part of transactions are currently feasible and are of interest to specialized investors. The focus of Invenium Legaltech is the legal and strategic component: it is important to understand that in this macro area there are many different issues: sale of large NPL portfolios (in a primary or secondary market, secured or unsecured), factoring, invoice trading, assignment of receivables from the Public Administration…A vast sea of often complex solutions, characterized by a strong selection of transferable receivables/transactions that can be carried out by investors.

Precisely for this reason, it is essential to rely on operators with a solid track record: contact us for any need for further information.

Our goal is to build solid, cordial and transparent relationships with all our customers: to seek maximum performance while maintaining great attention to the customer's brand and the compliance of recovery activities. We put commitment, head and heart into what we do: we cannot guarantee the result in every mandate but we can instead ensure our focus on the client's objectives. What we do is important: an unpaid receivable (or a perimeter of unpaid receivables) is capable of opening a company crisis, especially when the debtor customer operates in a foreign country. That's why we're going to do our best; we have been awarded (also at the Chamber of Deputies in Rome) with various awards for our credit management and innovation activities; together with AICE Italian Association of Foreign Trade we have created a consultancy service accessible to exporting SMEs, we are partners of Le Village Milano (Credit Agricole) and Fintech District (Banca Sella); we created the first web app dedicated to international debt collection and launched the major project dedicated to "import-exportech", the digital transformation of international trade, within MIND.

But our greatest satisfaction - in all sincerity - is the appreciation and recognition of our customers. If you want, take a look at our success stories!

It is important to note that the first phase of strategic analysis promoted by Invenium Legaltech on the issues submitted is completely free of charge: when further in-depth analysis appears necessary or the recovery activity must be concretely started, the client will be able to examine the pricing formulated and freely decide whether or not to confer the management or strategic consultancy mandate.

In addition, we are partners of important funds dedicated to litigation financing: we remind you that the two standard prerequisites for the involvement of a litigation funding fund are two: the validity of the claim/credit and the counterparty's capital capacity. Also in this case we can learn more about the topic in a dedicated video call.

Of course: we are quick! Contact us immediately via the dedicated form and we will promptly offer you various slots to choose from.