You might know the following situation: you delivered goods or provided a service, issued an invoice with a 30-day payment term, but the money still hasn't arrived in your account. Your urgent requests went unanswered, no one picked up your calls, and your business partner suddenly discovered a stockpile of excuses – „we're waiting for payment from our customer,“ „we'll sort it out next week,“ „the invoice got lost in the system.“ Meanwhile, your cash flow is bleeding, your unpaid invoices from creditors are piling up, and you're gradually sinking into secondary insolvency. This is the beginning of a struggle for your own money in business, which in the legal environment is called debt recovery. In this article, we will focus exclusively on the recovery of debts from legal entities under Slovak commercial law.
Many creditors hesitate, giving another chance, believing that payment will still come. However, the longer the problem is put off, the greater the risk that the debtor will meanwhile dispose of assets, become insolvent and end up in bankruptcy, or the debt will become time-barred. In the business environment, it holds true that A systematic and timely approach significantly increases the chance of a successful debt recovery.
Before you even enter into a business relationship with anyone, you have the most powerful tool at your disposal to „insure“ that what has been agreed upon will be fulfilled, and that tool is careful preparation, within which we recommend the steps listed below:
Always check the company you are entering into a contractual relationship with. The primary source of information is Commercial Register of the Slovak Republic (orsr.sk), where you can verify a company's existence, its statutory bodies, shareholders, and whether the company is in liquidation or undergoing dissolution. We also recommend checking Register of powers of attorney for the enforcement of execution a Register of pre-insolvency, liquidation and insolvency proceedings alternatively finstat.sk. There are also paid systems capable of in-depth assessment of a company's condition; we have one such system and, if you are interested, we can „vet“ your company.
Remember, if a company appears in the enforcement or insolvency register, there's a high chance you won't see your money again, simply because they are in debt.
The basis is written agreement The more detailed it is, the less room for manoeuvre the other party will have when trying to avoid the obligations they have undertaken. You can also „insure“ your money through collateral:
Writing a high-quality contract is not at all simple. It requires not only a wealth of knowledge and experience, but also a deep understanding of the internal logic of the business relationship – what the contracting parties truly want and what could go wrong. This is precisely the „alchemy“ with which we can help you. With a well-written contract, the debtor's position is considerably complicated, and your chances of getting your money back are significantly strengthened.
If you have vetted your business partner and decided to lend them money, for example for the expansion of their business or a new project, we recommend that you conclude loan agreement. This is a consensual commitment that arises from an agreement, meaning the physical handover of money is not required as it is with a loan agreement. If the debtor later denies receiving the money, you can rely on the valid agreement. Another advantage is the longer 4-year limitation period and the possibility of agreeing on interest.
If the debtor is in arrears and you are communicating with them, ensure that you written acknowledgement of debt. This is a unilateral written act by the debtor, in which they acknowledge the existence of a debt in terms of its cause and amount. To some extent, you can pressure the debtor by stating that if they truly wish to settle what they owe you, they should confirm their words and acknowledge the debt. You want actions, not just promises and words.
Key consequences of recognising a commitment:
From our perspective, the most effective tool in the creditor's hands notarial deed containing a direct undertaking by the debtor with a clause of enforceability. Its key advantage is fundamental: the minutes themselves represent enforcement order – if the debtor fails to fulfil their obligation within the agreed period, the creditor may immediately file for enforcement without any court proceedings. The entire phase of litigation and waiting for a judgment is eliminated. In practice, this is a still underestimated tool, but extremely effective when a business relationship is properly set up.
Debt collection from a legal entity is a legal and legitimate tool for protecting a creditor's rights in commercial dealings. Compared to individuals, commercial law offers wider security options, higher penalties for delay, but also greater risks associated with the debtor's insolvency. The key to success is quick reaction – you can't wait weeks or months – and consistent preparation of documentation even before the claim arose.
Perhaps you know the Latin quote „If you want peace, prepare for war“ – If you want peace, prepare for war. This is doubly true in the business world: if you thoroughly secure your rights at the very beginning of a business relationship, you will avoid defeat in a potential court dispute. Our law firm has been specialising in debt recovery for over two decades; during this time, we have helped numerous creditors and we can help you too – do not hesitate to contact us.
The debt recovery process generally begins pre-action letter – a formal written notice to the debtor of the existence of the debt, its amount, the legal reason for its creation, and a clearly formulated demand for payment within a reasonable additional period. The demand includes a warning about the possibility of legal enforcement if payment is not made. In other words: We will make it clear to the debtor that if the money is not paid by the specified day, we will take legal action.
In a business environment, a pre-action letter exceptional practical significance – many companies agree to payment precisely because they do not want a court dispute, an entry in the register of debtors, or damage to their business reputation. The claim also documents that the creditor acted proactively, which may be relevant when awarding costs of proceedings.
In situations where there is a risk that the debtor may conceal assets, transfer them to related parties, or otherwise frustrate the satisfaction of a claim, an immediate response tool is available – urgent measure or protective measure. The court may impose an obligation or prohibition on the debtor, even before court proceedings have commenced.
Typical examples in commercial law cases:
The team will ensure that assets from which a claim could be satisfied remain preserved until the dispute is legally concluded.
If the debtor does not respond to the pre-litigation notice or refuses to comply, the following occurs: sud. In monetary claims from commercial relations, an effective tool is filing an application for a payment order within reminder proceedings. This is a simplified procedure, within which the court without a hearing shall issue a payment order obliging the debtor to satisfy the claim.
A specific aspect of debt recovery from a legal entity is that it may be insolvent or over-indebted, which raises the question insolvency proceedings. The creditor then has two options:
Practical advice: if you find out your debtor is in insolvency proceedings, Contact a solicitor urgently.
If the debtor fails to fulfil their obligation even on the basis of a legally binding and enforceable court decision, the creditor is entitled to file Application for enforcement.
| CHECKLIST | YES | NIE |
| PREVENTION – before a claim arises | ||
| I checked the business partner in the Commercial Register of the Slovak Republic (orsr.sk). | ☐ | ☐ |
| I checked the Register of Warrants for Enforcement and the Register of Insolvency Proceedings | ☐ | ☐ |
| I have a closed written contract (purchase agreement, contract for work, service agreement) | ☐ | ☐ |
| The obligation is secured (by pledge, surety, retention of title, or bank guarantee) | ☐ | ☐ |
| I have a notarial deed with an enforcement clause (enforceable title without court proceedings). | ☐ | ☐ |
| DOCUMENTATION – evidentiary basis of the claim | ||
| I have an invoice, delivery note or acceptance protocol confirming fulfillment | ☐ | ☐ |
| I have a backup of email correspondence in which the debtor confirmed or admitted the obligation. | ☐ | ☐ |
| I have a written acknowledgement of debt by the debtor (it interrupts the statute of limitations and reverses the burden of proof). | ☐ | ☐ |
| RECOVERY – procedural steps | ||
| I have sent the debtor a pre-action letter with a specific deadline for payment | ☐ | ☐ |
| I have considered filing an application for an urgent/interim measure (threat of asset concealment). | ☐ | ☐ |
| I have submitted a proposal for the issuance of a payment order in a reminder procedure | ☐ | ☐ |
| INSOLVENCY – if the debtor is unable to pay | ||
| To check if the debtor is bankrupt or in restructuring | ☐ | ☐ |
| I have registered a claim in the bankruptcy / restructuring proceedings within the statutory deadline | ☐ | ☐ |
