In this golden age of real estate, you are often faced with ever larger orders and it becomes difficult to keep track of whether everyone is honest in fulfilling their obligations to you. Don’t let your working capital cover the unpaid invoices for works, services and fees.
An advance payment for works or materials is often required in the real estate market and in construction processes. When buying real estate using a loan from a credit institution, an advance is often paid before you known whether the bank will grant a loan for the purchase of the property in question, which is why it is important to specify a possibility of withdrawing the advance if the bank or other credit institution does not grant the loan to buy the real estate in the terms and conditions of the preliminary sale and purchase agreement or the agreement on advance payment. Otherwise, the repayment of the advance to the buyer is optional.
Advances are also paid to companies or individual workers for future services, so it is important to define the terms and conditions for the repayment of the advance paid if the quality of the work is not satisfactory or the provision of services is delayed.
Debt collection companies have experience in a very wide range of areas: debt recovery, default, repayment of advances, indemnification. They also operate in different countries around the world, so they can help you collect debts from any spot of the globe.
Our debt recovery company helps legal and natural persons recover debts from other legal or natural persons and operates worldwide.
The construction sector is often seen as large companies involved in major investment projects and the construction of buildings covering thousands of square metres. This is only part of the construction sector. The other part is made up of individuals and small and medium-sized enterprises that work in the construction sector (from the design of buildings to their delivery).
The construction sector is one of the most indebted sectors in Lithuania. Debt collection companies working in the construction sector are most often confronted with debts due to poorly drafted contracts, lack of documentation, failure to read written contracts, or lack of the works transfer-acceptance certificates, which make it difficult to collect the debt.
A very common problem for small businesses and self-employed workers working under an individual activity certificate is that clients do not pay for works/materials. In order to collect the unpaid debt, clients must prove their claim with written documents (contract, transfer-acceptance certificate, consignment note, invoices, etc.). They are particularly necessary if it is not possible to collect the debt without involving judicial authorities.
Recovery in construction is also possible for damages suffered during the provision of services. Many professional companies now take out insurance to cover their activities and the risks of construction work so that they do not have to pay out of their own working capital in the event of damage.
Recovering a debt from a contractor who has not been insured is a more complicated process, as both parties have to agree on the amount of the damages suffered. Failing to do this, debt recovery is then referred to court.
Debt collection companies profit from successful debt recovery and are therefore highly motivated to resolve debt recovery efficiently and quickly. Motivation will not guarantee a positive outcome, but both the creditor and the collection agency will have an equal interest in finding a solution.
