New European Regulation against Commercial Late Payments: Optimize Your Collection Management and Automate Debt Recovery

The European Parliament has recently approved a new regulation against commercial late payments, which will come into effect in July 2024. This regulation aims to improve the payment environment in Europe, especially for small and medium-sized enterprises (SMEs), by setting stricter payment conditions and reducing delays. This change could significantly impact how your company manages collections. In this context, automating debt recovery with tools like Wannme’s software can give you a competitive edge.

Key Details of the New Regulation Against Commercial Late Payments

The new regulation aligns with the European Union’s efforts to improve payment efficiency and introduces several key measures to combat late payments and facilitate cash flow for businesses. The most relevant aspects are as follows:

1. Reduction of Payment Deadlines

   The regulation stipulates that the maximum payment term for invoices is reduced to 30 days from the receipt of the invoice or goods/services. In specific cases, this period can be extended to 60 days, but only if explicitly agreed upon by both parties and if it is not deemed unfair to the supplier. This reduction aims to accelerate cash flow and mitigate liquidity problems faced by many companies.

2. Increased Late Payment Interest and Fees
   Penalty interest rates and costs associated with debt recovery have been increased. This provides greater incentives for debtors to meet their obligations on time and compensates companies for payment delays. It will also help reduce the costs related to debt collection procedures.
3. Greater Contract Transparency
   The regulation requires greater transparency in payment conditions, mandating that terms related to payment deadlines, late payment interest, and other fees be clearly specified in contracts and invoices. This measure seeks to reduce misunderstandings and disputes and ensure that both parties are aware of their rights and obligations.
4. Simplified Claim Procedures
   The regulation simplifies the process of filing and resolving payment claims. This means that companies will be able to more efficiently claim overdue payments and resolve disputes faster.

How Wannme’s Automated Debt Recovery Software Can Help

To fully leverage the new regulation and improve collection efficiency, it is essential to implement a debt recovery automation solution. Wannme’s software offers several features that can transform how you handle collections within your company:

1. Automatic and Efficient Debt Recovery
   Wannme automates the entire process of debt recovery, from sending reminders to processing payments. This saves time and ensures that collections are done promptly and efficiently, in line with the new payment deadline regulations.
2. Returns and Refunds Management
   Wannme’s system includes tools to manage returns and refunds automatically. With customizable alerts, it detects payment errors, sends personalized notifications, and automates retry attempts, facilitating the quick resolution of unpaid invoices.
3. Multichannel Communication
   Wannme enables effective communication with debtors through multiple channels, such as SMS, email, and WhatsApp. This ensures messages reach customers promptly and increases response rates.
4. Integration with Various Payment Methods
   The software integrates with multiple payment methods, including SEPA direct debits, Bizum, and PSD2 transfers, offering clients flexibility in choosing how they want to pay. This variety simplifies the debt recovery process and increases the likelihood of receiving timely payments.
5. Intuitive Dashboard
   From Wannme’s dashboard, you can manage and edit client files, define automated events, and monitor the recovery process centrally. This functionality boosts operational efficiency and reduces the administrative burden.

Conclusion

The approval of the new regulation against commercial late payments represents a significant step in improving payment terms for businesses across Europe. By combining these changes with an automated debt recovery solution like Wannme, you can optimize your collection management, reduce the time and costs associated with unpaid invoices, and ensure greater liquidity for your business.

Want to learn more about how our software can transform your collection process? Contact us and discover how to effectively optimize your debt recovery!

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