In today’s interconnected world, cross-border business is more common than ever. However, with international opportunities come unique challenges, especially when it comes to unpaid invoices. What happens when a company in one EU member state owes money to another, and traditional reminders simply aren’t working? This was precisely the dilemma faced by an Italian software provider when a German client failed to pay for their subscription.

The Challenge: A Lingering Debt Across Borders

Our client, an innovative Italian company offering a specialized software subscription, found itself in a frustrating situation. A German company, after initially enjoying the service, simply stopped paying their recurring invoices. Despite repeated attempts to communicate and collect the outstanding amount, the German debtor remained unresponsive.

For many businesses, a cross-border debt like this can seem daunting. The perceived complexities of international law, language barriers, and differing legal systems often deter creditors from pursuing what they are rightfully owed. However, our Italian client understood the importance of recovering their funds and sought a specialized solution.

The Solution: EuroClaim and the European Payment Order

That’s when they turned to EuroClaim, a company specializing in international debt recovery. EuroClaim understood the intricacies of European legal frameworks and swiftly identified the most effective route: the European Payment Order (EPO).

For a fixed fee, EuroClaim took on the entire process. They meticulously prepared all the necessary documentation for the European Payment Order and promptly submitted the claim to the competent German court.

What is a European Payment Order (EPO)?

The European Payment Order is a streamlined legal procedure designed specifically for uncontested pecuniary claims in cross-border cases within the European Union. It offers a fast, efficient, and cost-effective way for creditors to recover debts from debtors located in another EU member state.

Key advantages of the EPO include:

• Speed: Unlike traditional, often lengthy, national legal proceedings, the EPO process is designed to be quick.
• No Limit: There is no upper limit to the amount that can be claimed from the debtor using the EPO procedure. Whether it’s a few hundred or several million euros, the EPO is applicable.
• Cross-Recognition: Crucially, once issued in one EU country, the European Payment Order is recognized and enforceable in all other European Union countries. This means a payment order issued by a German court can be enforced in Italy, France, Spain, or any other EU member state, without the need for further complex legal proceedings in that country.
• Fixed Fee Structure: Services like EuroClaim often offer fixed fees for preparing and submitting EPOs, providing cost predictability for creditors.

A Swift and Positive Outcome

Thanks to EuroClaim’s expertise and the efficiency of the European Payment Order procedure, the Italian company quickly saw progress. The German court processed the application, leading to a resolution that ensured the Italian company received the payment they were owed. This case serves as a powerful reminder that geographical borders do not have to be barriers to justice or effective debt recovery within the EU.

Don’t Let Cross-Border Debts Deter You

If your business is facing similar challenges with an unpaid invoice from a client in another EU country, remember that effective tools like the European Payment Order exist. Engaging with specialized debt recovery services can provide the expertise needed to navigate these international waters successfully, ensuring your company’s financial health.