DEBT RECOVERY IN UKRAINE, THE CIS AND OTHER COUNTRIES. UKRBUSINESSCONSULT

Recovery and collection of accounts receivable

Recovering accounts receivable starts with three questions: who is obliged to pay, what confirms the payment due date, and what assets or cash flows are available for enforcement. The sooner a company brings the contract, primary documents and correspondence into one file, the more accurately it can choose negotiations, a formal demand, security, court proceedings or enforcement proceedings.

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Reviewing the claim before contacting the debtor

A lawyer cross-checks the contract, specifications, delivery notes, acceptance certificates, invoices, payments and the authority of signatories. The principal debt, contractual penalties, interest and other amounts are calculated separately, with the relevant period and calculations stated. Limitation periods, agreed jurisdiction, arbitration clauses, the currency of the obligation and evidence that documents were sent are checked. The finance team receives a position that can substantiate every figure.

Negotiations and repayment schedule

A commercial settlement works where the debtor acknowledges the obligation, identifies a realistic source of payment and is prepared to formalise a schedule. The agreement sets dates, amounts, payment details, the consequences of delay and possible security: a guarantee, pledge, surety or withholding of counter-performance. Each payment is reconciled against its purpose and the outstanding balance, and the arrangements are executed by authorised representatives of the parties.

Court proceedings and evidence

If the dispute requires a court decision, the file is prepared under the applicable procedural rules. In a commercial case, evidence of supply or services, the due date, the calculation and delivery of documents to the other party is important. Before filing, the court fee, possible interim measures, the duration of the stages and the prospects of enforcement are assessed. For a foreign debtor, jurisdiction, service, applicable law and recognition of the judgment in the country where assets are located are also analysed.

Enforcement proceedings and control of receipts

The enforcement document is submitted to a state or private enforcement officer within that officer's competence. The creditor provides known information about accounts, property, receivables and corporate rights, monitors orders and responds to requests on time. The Unified Register of Debtors and the court register help to check open enforcement cases and disputes. Amounts received are allocated in the accounts, while completion is documented by the enforcement officer's records and an internal reconciliation.

Preparing the recovery strategy

Before the initial meeting, the owner gathers the source data: contracts, primary documents, payments, correspondence, calculations, information about the debtor, its assets, jurisdiction and any available security. These are organised by source and date so that the team works from one version of the facts and immediately sees which points require confirmation.

The result is documented as a legal position, financial calculation, asset map, negotiation and litigation scenarios, timetable and evidence file. The file records calculations, assumptions, responsible persons, agreed decisions and evidence of completed actions. It is used in negotiations, passed to the relevant staff and helps management control the matter on its merits.

Each action has an owner, a deadline and a form of evidence. The finance team is responsible for the figures, the lawyer for authority and contracts, and operational staff for information about the asset and actual performance. Management approves decisions affecting price, budget and relationships with partners.

The working cycle is complete when the claim is substantiated, an executable course of action has been chosen, receipts are controlled, and completion is reflected in the accounts and documents. After the first review, the file is updated with actual data and becomes the basis for the next management decision.

Control after the first working cycle

Before launch, management once again reconciles the factual picture: contracts, primary documents, payments, correspondence, calculation, information about the debtor, its assets, jurisdiction and possible security. The review is based on documents and actual transactions so that dates, amounts, authority and participants describe the same matter. Clarifications are entered into the working version before signing, filing or passing information to the other party.

The team keeps an action register showing the responsible person, deadline, dependency and method of confirmation. Owner decisions, external requests, payments, registration actions and counterparties' documents are marked separately. Meetings address specific deviations from the timetable and select the next action that moves the matter towards the agreed result.

The common basis is the prepared file: legal position, financial calculation, asset map, negotiation and litigation scenarios, timetable and evidence file. Working parts are given to employees according to their roles, while originals and signed versions remain in the central file. This preserves the link between advice, the management decision, the contract, the register, the banking transaction and its accounting treatment.

After the first month or a completed stage, the team compares planned and actual deadlines, costs, documents and partners' questions. The conclusions are recorded briefly: what has been confirmed, which figure has been clarified, what decision has been made and who is responsible for the next period. The working instruction is updated together with the financial model version and timetable.

The control system demonstrates a result when the claim is substantiated, an executable course of action has been chosen, receipts are controlled, and completion is reflected in the accounts and documents. The owner receives a file that can be used when expanding the matter, handed over to a new responsible employee and presented to a partner to the extent needed for the next business decision.

Sequence and main stages of the service

1. Collect the contract, primary documents, correspondence and bank reconciliation.
2. Calculate the claim and assess the debtor, assets, jurisdiction and deadlines.
3. Conduct negotiations or prepare a formal demand and procedural file.
4. Submit the enforcement document and control the process through to full reconciliation of receipts.

What to prepare

• contracts, appendices, orders and signatories' authority
• delivery notes, acceptance certificates, invoices, evidence of delivery and quality
• bank statements, reconciliation statements and the debt calculation
• correspondence, demands, responses and repayment schedule proposals
• information about the debtor, its assets, disputes and enforcement proceedings

Control points for the owner

• each amount is linked to a document and period
• deadlines and jurisdiction have been checked before filing
• the payment schedule includes security and control of the outstanding balance
• the court decision is accompanied by a plan for actual enforcement

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