1. Opening of the claim file by Euler Hermes
As soon as a claim file has been opened, the unpaid invoice will be passed on to the credit insurer who continues to follow up on the case. We will inform you every 30 days whenever we receive an update on the case from Euler Hermes about the actions taken and the development of the claim file.
The follow-up of the credit insurer consists of 2 phases:
- Prelegal phase: Last attempt to find an amicable solution with the debtor. This phase is usually very short in consideration of the efforts that have already been taken by Edebex. However, Euler Hermes will in some cases try again to get in contact as their status as the world’s leading credit insurer can put further pressure on the debtor.
- Legal phase: Transfer of the claim file to a lawyer and possibly start of the legal procedure.
2. Payment of the guarantee by the credit insurer
The guarantee (which is either 70% or 90%*) in the case of bankruptcy of the debtor will be paid by the credit insurer:
- Within 30 days after receipt of the necessary documents that prove the existence of the claim and the bankruptcy of the debtor.
- Between the 5th and 6th week after opening of the claim file if the payment is still outstanding. Should the debtor finally pay afterwards on conviction of the court, you will also get back the part* that was received on top of the guarantee.
* The guarantee is calculated based on the actual value of the invoice (not the purchase price) and is reduced by 30% or 10% for the collection costs incurred by Euler Hermes. The amount of this reduction depends on the granted guarantee of 70% or 90%. In practice, the guarantee paid to you will be close to 70% respectively 90% of the purchase price of the invoice.
3. Withholding of a provision
As long as the claim file is still open, a provision is held back from which the collection costs will be deducted. Of course, you will be informed about the total amount of collection costs incurred after closure of the file.