April 17, 2026

knowledge zone

How to submit a debtor for collection?

Author : Magda Hapeta-Staniek

Payment bottlenecks are the bane of every business. It only takes a few unreliable contractors to put a company's financial liquidity in question. Submitting a debtor for debt collection is often a necessary step to recover the funds owed to you.

Who bears the cost of debt collection? Two models of cooperation

In practice, you can choose one of two paths when working with a debt collection agency:

1. Debt Collection at the Debtor's Expense

In this variant, you can seek reimbursement for successful collection services. The debt collection agency, Pactus.eu, issues an invoice for its service only after successfully recovering the money. Based on this invoice, the debtor is issued a debit note for the incurred collection costs.

This way, you can recover not only the principal amount but also the full costs of the debt collection activities previously incurred. At Pactus.eu, the entire process of issuing and delivering the recovery cost note, as well as handling any subsequent collection, is managed on our end, without involving the client in any actions.

2. Debt Collection at the Creditor's Expense

In this variant, the creditor bears the cost of the service. In this type of collection, along with the principal amount, you can claim the statutory compensation that is due the moment the payer misses the payment deadline. Alternatively, you can collect only the principal amount itself; once the reported debt is paid, the process concludes with a commission invoice issued to the client.

Why choose professionals?

Independent attempts to recover debt often end in failure – the debtor ignores reminders, and you lose time and patience. Professional debt collection combines negotiation expertise with comprehensive legal support. Debtors see they are dealing with professionals in debt recovery, which in itself often accelerates payment.

Our advice: Every week of delay in taking collection action reduces your chances of recovering your money. The keys to success are speed of action, complete documentation, and professional support.