Debt recovery audit: eight questions showing how much money your business leaves uncollected

Most businesses lose money a little at a time rather than through one major debtor: a forgotten invoice, interest never calculated, a reminder without legal effect or insolvency discovered by accounts after the deadline. A recovery audit need not take months. It starts with eight questions a business should answer before a court, insolvency administrator or auditor asks them.

1. Do we know which claims become time-barred this year?

The general limitation period is four years under commercial law and three years under civil law, unless legislation provides otherwise. For civil-law claims for damages and unjust enrichment, the subjective period is generally two years, alongside the applicable objective period. There is no universal ten-year ceiling for all claims. The relevant period and its commencement must be determined by the nature of the claim and the applicable legislation; acknowledgement of the debt and proper commencement of court proceedings may also be significant.

Unofficial English translation:

Unless the law provides otherwise for particular rights, the limitation period is four years.

— § 397 of the Commercial Code

The audit begins with a list of claims, due dates and limitation dates. Claims expiring this year go straight to the top. See when does a claim become time-barred? for details.

2. Do we charge late-payment interest and fixed compensation?

Late-payment interest arises by law without an agreement. Commercial relationships also attract fixed recovery cost compensation:

Unofficial English translations:

The debtor’s default gives the creditor, in addition to the claims […], a right to fixed compensation for costs associated with pursuing the claim, without any separate notice.

— § 369c(1) of the Commercial Code

Fixed compensation for costs associated with pursuing a claim […] is EUR 40 as a one-off amount, regardless of the duration of default.

— § 2 of Government Regulation No. 21/2013 Z. z.

The fixed amount does not apply to consumers (§ 369c(2)). The audit question is how many demands last year included calculated interest and compensation. We explain rates in what late-payment interest can I claim?.

3. Do our reminders have legal effect?

A payment demand should clearly identify the creditor, the debt and the performance sought: the invoices, principal, lawfully claimed ancillary amounts and the payment deadline. Incomplete or misleading communication with a consumer creates a risk of an unfair commercial practice, but the mere omission of one item does not automatically make it one. For loans issued by supervised entities, NBS Opinion No. 2/2022 and its exceptions must also be considered, including specially regulated demands and information apparent from the circumstances. See what must a payment demand contain? and the complete process in how to recover an unpaid invoice.

4. Do we obtain a debt acknowledgement when a debtor asks for instalments?

A written acknowledgement creates a presumption that the debt exists, reverses the burden of proof and starts a new limitation period (§ 323(1) of the Commercial Code). An instalment schedule without an acceleration clause protects the debtor, not you. See B2B debt acknowledgement and instalment schedules for drafting guidance.

5. Do we have security when supplying on credit?

Written retention of title keeps goods in your ownership until full payment (§ 445 of the Commercial Code). Add credit limits, advances for new customers and a director’s guarantee for larger volumes. Check registers before supply: see how to check a new customer. Without a written contract, delivery notes and emails can prove supply; see goods supplied without a written contract.

6. Do we know when to use a domestic or European payment order?

For an undisputed invoice with a Slovak debtor, a payment order is the fastest route. The court decides without a hearing and the debtor has 15 days to pay or lodge a substantively reasoned opposition. For a debtor in another EU Member State, the European order for payment provides 30 days to oppose. See what is a payment order and how can it be challenged?.

7. Do we monitor debtors’ insolvency and enforcement proceedings?

Since 1 October 2025, bankruptcy declarations have been published in the insolvency register under § 199 of Act No. 7/2005 Z. z. The register must be monitored continuously. Claims should be lodged within the basic 45-day period after declaration. Late claims are considered, but creditors lose voting and other rights. On an individual’s debt relief, the claim becomes unenforceable against the debtor, but not against a guarantor. If a company ends without assets, a claim may remain against a director who failed to file in time. See lodging an insolvency claim, the debtor’s debt relief and suing a director.

8. Do we know when to write off a claim or assign it?

Suing a debtor without assets creates another cost, not revenue. Before filing, check assets, enforcement and insolvency. This determines whether to sue, assign at a discount, monitor the debtor and lodge a claim in future bankruptcy, or write it off. That is the purpose of debtor creditworthiness checks.

Acting on the findings

• Claims expiring this year receive demands and proceedings first, regardless of value.
• Reminder and demand templates gain calculated interest, compensation and a deadline; consumer portfolios also need an internal reminder policy.
• New transactions start with register checks and a contract containing retention of title and credit limits.
• Debtors in bankruptcy or enforcement are monitored continuously, not once a year at stocktaking.

How to start

We can conduct the audit with you: review your claim list, templates and process, then return corrected documents and an ordered action plan. For consumer portfolios, this includes a recovery audit and reminder system; for larger invoice volumes, bulk debt recovery. We contact individual debtors with a letter before action and check new customers before supply through debtor creditworthiness checks. Send your unpaid invoice list. It lets us answer the first three questions.