A fraudster, a trickster, a thief and a whole avalanche of problems … these are just some of the statements we can use to define who a professional debtor is. Unfortunately, there are more and more people who act to the detriment of entrepreneurs. Who is a professional debtor? I recognize him? How to avoid such people on your business path will be told by Mr. Wojciech Węgrzyński – co-founder and partner at Trenda Group.

From this material you will learn:

  1. Who is a professional debtor?
  2. How to recognize a professional debtor?

  3. How to avoid and protect yourself not to meet such people on your business path?

Who is a professional debtor?

A professional debtor is none other than a person who acts to the detriment of entrepreneurs by not paying for invoices and taxes, and does it deliberately to achieve temporary, immediate benefits. Such actions affect not only entrepreneurs, it is also detrimental to employees and their families. An entrepreneur who has been cheated to recover his money must invest a huge amount of time, but above all money that could be spent on the development of the company or on bonuses for employees. It is worth mentioning that ¾ of our national GDP is generated by small and medium-sized enterprises. The question then arises: why do such professional debtors operate at all, and what drives them? Unfortunately, probably no one knows the exact answer to this question. Recovering money from them is often unprofitable even for debt collection companies, because it is impossible to recover money from such a debtor. Is there anything you can do about this unpleasant phenomenon?

In the case of professional activities of debtors, a large number of entrepreneurs who have dealt with them, in particular those who already come to us with problems, are wondering whether to go to court, due to bad experiences with the system: at the end of the court and bailiffs instead of money, they received an ineffective enforcement decision, and the professional debtor continued to drive his beautiful brand car, registered to another person, with a smile on his face. In this context, I would like to point out that the Polish legal system and the slowness of the courts unfortunately allow professional debtors to function in our country. A large part of the provisions are very useful to professional debtors and simply allow them to avoid liability. A great example is the possibility of not receiving correspondence by persons running a sole proprietorship due to the fact that the data in the central register and information on economic activity are not updated. Such regulations mean that entrepreneurs who want to get their money back have to invest huge amounts of money to try to recover unpaid invoices. Often, for this purpose, not only civil, but also criminal steps must be taken – explains Mr. Wojciech Węgrzyński, co-founder and partner at Trenda Group.

How to recognize a professional debtor?

Unfortunately, recognizing one is not easy. Most often it is a very well-organized entity. He is a person who feels at home in business, knows the rules of the market, knows his location and his strengths. In general, it is very dangerous for the company with which he cooperates. Just as the elderly are exposed to extorting money using the “granddaughter” method, entrepreneurs are robbed in a similar way by a professional debtor. Such actions are committed with full premeditation, but their intention is not visible at first glance. What to pay attention to?

  • The professional debtor drives luxury cars and owns a luxurious apartment

  • He boasts of his achievements

  • Most often, he holds business meetings in the most expensive restaurants or business clubs, explaining that he has his office abroad

  • The first invoices are paid ahead of schedule or on time to lull the potential victim to sleep

How to avoid and protect yourself not to meet such people on your business path?

The cheapest and simplest option is to hire professional companies to verify potential contractors. However, if someone wants to act on their own, then it is best to subscribe to all possible business intelligence agencies. It is also a good idea to take out insurance. If someone cannot afford it, then the assets of the potential client should be checked to see if they are solvent.

We should remember, as entrepreneurs, that if we cooperate with a client that we have not checked, it may consequently destroy the foundation of the company that we have been building for many years, destroy the contribution of our work, often and the devotion of our employees who simply believed in us. The result may be the closure of the business and driving into a spiral of debts – says Mr. Wojciech Węgrzyński.

In summary, when running a business, we must be very responsible in running it. We have to share our insights and experiences with such companies, such people, so that other entrepreneurs do not have to find such people. Then no one will have to use debt collection companies.