What are the usual timeframes for the debt recovery process?
The debt recovery process can last between 30 days and 18 months , depending on the nature of the debt, the debtor’s responsiveness, the actions taken and the procedures chosen ( amicable or legal ). In simple cases settled amicably, payment is often made in less than 60 days. For more complex cases requiring legal action, the timeframe can extend to a year and a half or even longer.
These delays are influenced by several factors, which we will detail below. To properly manage your outstanding customer debt, it is essential to understand the different stages of recovery and their average duration.
The stages of debt recovery and their average timeframes
The recovery of a debt follows a precise path, divided into several phases.
1. Preventive recovery (before the deadline)
The preventive reminder phase aims to anticipate late payments. It begins a few days before the invoice’s due date. It often involves a simple reminder by email or phone.
- Duration: 1 to 5 days before expiry.
- Objective: to prevent the late payment invoice from becoming a debt.
2. Amicable debt recovery (after the due date)
When payment is not made by the due date, the amicable recovery phase begins. This involves obtaining payment without going to court.
- The first reminders begin immediately after the deadline, sometimes as early as the next day. They are sent by email or simple letter. If the customer does not respond, more personalized telephone reminders are sent. Average duration: 7 to 15 days after the deadline.
- Formal notices : If the debtor does not respond, a formal notice is sent, often by registered mail with acknowledgment of receipt. This is a final, firm attempt before considering legal proceedings. The average duration: between 15 and 30 days after the first reminder.
The amicable phase can therefore last between 15 and 45 days after the due date, depending on the debtor’s responsiveness. It can be shortened depending on the nature of the debt or the debtor’s profile if the company uses a debt collection agency like GESTION CREDIT EXPERT , which has more effective resources and methods.
When to move to legal debt recovery?
If amicable recovery fails, the creditor may initiate legal proceedings. It is important to act without delay, as time is against the creditor: the older the debt, the more difficult it becomes to recover.
Typically, professionals wait 30 to 60 days after the deadline before taking legal action. However, some more sensitive cases may end up in litigation sooner.
The various legal procedures and their durations in debt recovery
Depending on the nature of the debt and the debtor’s situation, several legal procedures, with very different timeframes, may be considered.
1. The payment order
This is the fastest and most widely used procedure for undisputed commercial debts.
Average lead times:
- Filing of the application with the court: immediately, upon completion of the amicable recovery.
- Processing time by the court: 1 to 2 months.
- Notification to the opponent and time limit for objection: 1 month.
- Execution (via bailiff): 1 to 2 additional months.
Total duration: between 3 and 6 months, except in the event of opposition from the debtor.
2. The substantive assignment
If the claim is contested or complex, the creditor must go through a traditional court summons.
Average lead times:
- Filing of the application and scheduling of the hearing: 2 to 4 months.
- Procedure until judgment: 6 to 12 months, sometimes more.
- Execution of the judgment: 1 to 2 months if the debtor does not appeal.
Total duration: 8 to 18 months, depending on possible appeals.
3. Precautionary measures
Before or during the proceedings, the creditor may ask the judge to authorize the freezing of the debtor’s accounts or the seizure of assets to prevent their disappearance. The average timeframe is a few days to three weeks after the request, in emergency proceedings.
How to reduce debt collection times?
Although some factors are beyond the creditor’s control, there are several actions that can speed up the process.
Outsource debt collection
Using a firm like GESTION CREDIT EXPERT saves time from the very first reminders. Their teams are trained, responsive, and equipped with professional tools that optimize payment deadlines. They also know how to detect risk profiles and adapt their strategy.
Formalize the conditions of sale, a real shield against debts
A clear, signed contract, with specific payment deadlines and penalties in the event of late payment, makes it possible to secure receivables and intervene more quickly if necessary.
Follow up the day after the deadline
Many companies wait too long before following up. The sooner the follow-up, the more seriously the customer will take the delay. This prevents the potential for litigation.
Use scoring tools to anticipate the risk of non-payment
Assessing a customer’s financial reliability before granting them credit helps limit the risk of non-payment and therefore lengthy recovery procedures.
Debt collection can take anywhere from a few weeks to several months, or even longer. It all depends on the debtor’s behavior, the complexity of the case, and the creditor’s responsiveness. To prevent delays from getting bogged down, it’s essential to act immediately at the first sign of delays. Support from a specialized firm like GESTION CREDIT EXPERT is a powerful tool for recovering your debts faster and securing your cash flow.