(FAQ) Frequently asked questions and corresponding answers are listed below.



1. Why can't I collect the payments on my own?

You can of course try to collect payments yourself, however you must consider a number of factors such as time you will spend, additional obligations of the employees and the like. The advantage of debt collection agencies is in determined and systematic approaches, persistency, years of various experiences in the field of receivables recovery and finally in the objective attitude in relation to receivables not affected by the previous relation between a creditor and a debtor.

2. Can you guarantee that receivables will be collected?

Those who claim that the whole amount of receivables can always be collected should not be trusted. No one can give you a 100% guarantee that debt collection will be successful. 
No one can guarantee what ruling the court will release and how receivables will be collected (financial assets, revenues of a debtor, etc.) or whether debt collection will be successful in insolvency processes (bankruptcy, receivership and the like).
We can guarantee you that we will comply with the professional code of business conduct and do our best to collect your debts.


3. How long does it take for a debtor to clear past dues?

There is no guarantee for the debt collection. Debt collection action may take 24 hours or a number of months and in case of enforcement, even several years. Based on our experience, usually a debt can be collected in three months time.


4. Explain the business operations of Debt Collection Agencies?

A Debt Collection Agency operates as a third party, separated from a creditor who wants to collect its claims i.e. past-due receivables. There are two main types of Debt Collection Agencies operating in the receivables recovery industry. 

1. Type: Debt Collection Agency hired by a creditor acting on its behalf to collect debts. Debt Collection Agency does not own the debt; it charges a fee for the debt collection services. Fees charged are deducted from the collected amount. In some cases this costs can be transferred even to debtors.
2. Type: Debt Collection Agency purchases outstanding debts from a creditor, pays the agreed purchase price for claims and becomes an owner of the receivables. Afterwards debt collection agency collect outstanding claims in their own name.

5. What are procedures of debt-collection?

As standard, debt collection agencies contact individuals in writing, by phone and may eventually visit them. The written and oral correspondence serve to enable the recovery of receivables in the fixed amount or as agreed in installments. Should the communication with a debtor fail, creditor should consider or initiate a court debt collection of receivables.


6. I have receivables my debtors are unable or refuse to settle. I would like to collect my money but I don’t know how?

Converta d.o.o. can help you turn all the troubles into your profits. What we can do for you is initiate warning procedures (in writing and by phone), make agreements on the collection, carry out a research on a debtor's receivables in accordance with legal possibilities, look for alternative solutions for the collection, calculate default interest rates and contracted rates, take records on the activities and payments, etc. Should out-of-court options prove to be unsuccessful we can initiate a court proceeding i.e. enforcement on your behalf.


7. How are collection agencies paid?

Most debt collection agencies charge agreed fee as a percentage of monies collected.


Our fees depend on the age of the debt, the amount owed, quality of receivables and a debtor's credit rating, debt origin and other factors. Send us a request and we will provide you with accurate and precise offer.

8. Do I as a debtor have to pay a collection agency any additional amount in relation to the collection action?


Collection agencies are not allowed to charge fees that are higher than the actual debt however it is necessary to add default interest rates and possible costs to the principal amount. It is necessary to stress that most of the things depend on a contract entered into by and between creditor and debtor. If contract terms and general business requirements state that a purchaser is obliged to cover certain costs such as collection costs, default interest rates, legal consulting therewith costs incurred due to late payments, these costs must be covered as well. It should also be considered legislation that covers this mater in individual country. Such costs may be added to the initial receivables. Carefully read a contract before entering into agreement.

9. I don't want to handle the collection? I would rather focus on my core business activities. Does Converta d.o.o. purchase past-due receivables and what rates do you charge?

Converta d.o.o. has specialized in the field of purchasing past-due receivables. Since the matter relates to past-due receivables, we kindly ask you to make a list of receivables to be purchased so that we can make a concrete offer. The discount on particular receivables namely depends on a number of factors.


10. Does Converta d.o.o. undertake any risks upon signing a contract on the collection of receivables?

Converta d.o.o. charges a collection action fee in % of monies collected. This means that our income depends on our success. We cover costs of out-of-court debt collection process, so it is our loss if we are unsuccessful. 


11. The data required for the collection of debts i.e. past-due receivables?

We need following data:
• Creditor's full name and address
• Creditor's company registration number or tax file number 
• Phone and fax (contact)
• Debtor's full name and address
• Debtor's company registration number or tax file number
• Amount of receivables
• Invoice date, due date
• Copy of the remaining documentation (notices, statements, phone call records and other debt related data)


12. What does a list of receivables to be purchased contain?

Decision on the purchase of accounts receivable is based on the following:
• Accounts receivable (due date, value)
• Creditor (company, address/headquarters)
• Debtor (company, address/headquarters)
• Creditor's contact information
• Business relation accounts receivable have arisen from (short description of a business relation, all activities carried out so far in terms of debt collection, whether a debtor is attempting to dispute the claim and the like) 
• Documents proving the existence of receivables

Following the collection of the documentation, those receivables that cannot be collected are eliminated (e.g. late requests in solvency processes, a debtor who passed away with no assets and the like). Other accounts receivable are subject to estimation procedure.
To help you describe your accounts receivable go to the Form for the Lodgment of Receivables.

13. Can you help me with a debtor who is in a process of liquidation or receivership?

In case of bankruptcy, receivership, compulsory settlements and company liquidation, extraordinary rules are to be applied in relation to debt collection of receivables . According to our experience, filing receivables and waiting for the possible collection is not enough. The process must be regularly observed. Our Company can advise you i.e. help you with the preparation of filing forms and observation of the bankruptcy procedure.


14. What debt/receivables related data debtors must have in possession if they claim that the receivables have already been settled?

In case debtors claim that the receivables have been settled, they are obliged to provide you with the proof such as: bank record of payment with a clear indication of the bank, date of payment and transfer bank account number. The purpose of effecting the payment is most commonly indicated.