Entering the Polish market is not only an opportunity for growth, but also a necessity to ensure payment security. In practice, the problem of late invoices and non-payment affects many sectors, and in cross-border transactions, recovering debts can be more difficult than in domestic disputes. That is why, right from the planning stage of your collaboration, it is worth implementing solutions that will limit risk and facilitate the recovery of claims.
Before signing a contract, check your counterparty
If you are planning to work with a Polish company, start by verifying your business partner. It is worth checking whether the business is actually operational, whether it is undergoing restructuring or bankruptcy, and whether it is listed in the relevant registers. The RPMS article indicates that, in international relations, the e-Justice portal, the VIES system and, in some sectors, the EORI number can be helpful. Such an analysis allows you to spot warning signs early on and reduce the risk of working with an unreliable entity.
A good contract is the first line of defence
In international trade, an invoice alone is not enough. A well-drafted contract is of key importance, one that precisely defines the rights and obligations of the parties, the scope of services, payment terms, the method of determining remuneration, and safeguards in the event of non-payment. The original post also emphasised that random templates found online are often too general and do not reflect the realities of a specific business relationship. For a foreign entrepreneur entering the Polish market, this means one thing: the contract should be drafted in such a way that it can be effectively used even in the event of a dispute.
It is also worth gathering information about the business partner’s financial standing
A business intelligence check can provide additional protection. This involves legally obtaining information about the counterparty’s assets, the actual location of their business operations and their reputation within the industry. This step is particularly useful when the collaboration is of significant value or involves deferred payment terms. From a foreign entrepreneur’s perspective, it is simply part of a prudent approach to entering a new market.
Shorter payment terms reduce risk
One of the simplest protective measures is to structure the payment schedule appropriately. Shorter payment terms or splitting the payment into instalments allow for a quicker response when a delay occurs and limit the scale of potential losses. In practice, this means better control over receivables before the problem escalates into a serious dispute.
When a problem arises, the first step is usually amicable debt recovery
If a Polish business partner fails to pay, it is not always necessary to take the matter to court straight away. The RPMS indicates that measures may be of an amicable nature and include payment demands, reminders, negotiations or attempts to restructure the debt, for example by spreading it over installments. This solution is often quicker and cheaper, but in international relations it requires a good knowledge of the language, the market and local practice.
Simplified debt recovery tools are available in the EU
If the case involves a cross-border transaction within the European Union, a business can make use of simplified legal mechanisms. One such mechanism is the European order for payment, designed for uncontested and due monetary claims in civil and commercial matters. In principle, it operates in EU countries with the exception of Denmark, and the defendant may lodge an objection within 30 days of the order being served.
Another instrument is the European Enforcement Order, which allows enforcement to be carried out in another Member State without the need for a new trial and without obtaining a separate enforcement order. This solution applies to uncontested claims in civil and commercial matters and does not cover, amongst others, tax, administrative, family, insolvency or arbitration cases.
In certain situations, a European Account Preservation Order is also available. This allows funds in the debtor’s account to be frozen up to a specified amount, even before assets are transferred or concealed. This tool also applies to cross-border civil and commercial matters within the EU, excluding Denmark, and a decision can be made very quickly.
Well-prepared cooperation is cheaper than a subsequent dispute
For a foreign company entering the Polish market, the key takeaway is simple: debt recovery does not begin only when a business partner stops paying. It begins much earlier – when vetting the partner, negotiating the contract, setting payment terms and selecting appropriate safeguards. The better prepared the partnership, the greater the chance that the debt can be recovered quickly or that a dispute can be avoided altogether. It is precisely these measures that most effectively minimise risk in international trade. Check out our debt collection services in Poland https://rpms-legal.com/debt-collection/
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