Debt Collection Agency Belgium
Amicable Debt Collections Belgium
1. General information
Cosmopolite Collections maintain a professional collectionprocess. We always try to safeguard the relationship between our clients and their debtors.
Our team of collection specialists carry out the collection process in-house, contacting the debtors both verbally and in writing, whilst adhering to applicable Belgian laws.
When there is a dispute,we aim to reach an amicable solution between the creditor and the debtor by analysing all contractual documents (e.g.signed contracts, orders, confirmations, invoices and delivery notes, as well as previously agreed terms and conditions).
All investigations are completed with the assistance andagreement of our legal team.
1.2. Local agents
When our in-house actions do not lead to a positive result,we will contact a local agent from our network.
Each agent is responsible for a specific region or area, where the agent’s role is to contact the debtor by visiting their address and provide us with regular information regarding the debtor’s situation and solvency.
The agents are also permitted to receive payments from the debtor. Their final report will help us make a decision regarding the next actions to be taken.
In the amicable phase, Cosmopolite Collections always charge interest to the debtor. The applied default rate is 12%.
1.4. Debt collection costs Belgium
In the amicable phase, we charge two types of collection costs:A fixed amount of EUR 40 according to section 6 of the statute of 2nd August 2002 on late payment, regardless of the amount of the debt. A penalty clause of 15% of the principal amount of the claim submitted to Cosmopolite Collections.
The interest and cost rates we are using are in line with the average rate applied by our clients.
At the request of the client, we can adapt the rate we are using according to their terms and conditions. From a cultural point of view, the recovery of late paymentinterest and collection costs is quite difficult.
These penalties for late payment can be considered as a matter of negotiation between the debtor and the client.
1.5. Statute of limitations
The general statute of limitation period for unpaid invoices in Belgium is ten years and depends on the nature of the invoices. Some elements (e.g. a legal summons) can interrupt the prescription period.
1.6. Accepted and most common payment methods
The most common payment method is bank transfers.Cosmopolite Collections also accept drafts. We do not offer the direct booking off from the debtor’s bank account.
1.7. Type of companies in Belgium
- SCRI cooperative company
- SCRL cooperative company
Liability of founder(s) of a company (mostly SPRL/BVBAor SA/NV)
Generally, the founders of a company cannot be held personally liable for the debts of the company. They have to keep enough capital at the disposal of the company to enable them to function normally for at least two years.
If the company do not dispose of enough capital and go bankrupt within three years, the trustee in charge of the bankruptcy can sue the founders in court, which may hold them liable for some debts of the company.
Collecting business debts in Belgium can be a challenging process for foreign businesses, especially if they are unfamiliar with Belgian laws and procedures. Some specificities that foreign businesses should be aware of when collecting debts in Belgium include:
- The capital city of Belgium is Brussels.
- Belgium is divided into 3 regions: Flanders, Wallonia, and Brussels.
- The government of Belgium is a federal parliamentary democracy under a constitutional monarchy.
- The official languages of Belgium are Dutch and French.
- The currency of Belgium is the Euro.
- There are a number of debt collection agencies in Belgium, and the industry has existed in the country for many years.
- The national credit bureau in Belgium is the National Bank of Belgium. Some of the private credit reporting companies in Belgium include Experian, TransUnion, and Creditreform.
- Debt collection laws in Belgium are generally the same countrywide, although there may be some local variations.
There are several benefits to using commercial debt collection services in Belgium:
- Expertise in Belgian debt collection laws and procedures.
- The ability to communicate with debtors in multiple languages.
- A network of local debt collection agents.
- Experience negotiating settlements and payment plans.
- Professional and respectful approach to debt collection.
- Timely and efficient debt recovery process.
- Regular updates and transparent communication.
- A high success rate in recovering debts.
Our debt recovery agency has a very high success rate in Belgium thanks to our multilingual debt collectors located in the country and our 24/7 online debt recovery report website. We have local debt collection managers in the main cities of Brussels, Antwerp, and Ghent.