Inkasso, which means debt collection, is derived from the Italian word incasso, which means “receipt” and “collection” and in turn from the Italian verb incassare, which means “to collect money” or “to collect”. 

In this context, it is possible to understand the term debt collection as the collection of monetary claims that have to pay in your name or the name of someone else. 

Inkasso, which means debt collection, is derived from the Italian word incasso, which means “receipt” and “collection” and in turn from the Italian verb incassare, which means “to collect money” or “to collect”. 

In this context, it is possible to understand the term debt collection as the collection of monetary claims that have to pay in your name or the name of someone else. 

In banking, collection means the acquisition of securities (such as bills of lading) or means of payment (such as checks or bills of exchange) from bank customers by credit institutions and their transmission to the issuer or the debtor. The collection is banking within the meaning of Section 1 (1) No. 9 KWG. “Cashless check collection” is defined as “payment of credit and/or credit card/check-in cashless electronic form” and “bill of exchange business”. 

Easy inkasso 

The collection of payment documents such as automatic payments, checks, bills of exchange, interest coupons, and dividend coupons as well as debentures due is the collection of credit institutions. 

Cash on delivery also bases on the collection. According to the German Commercial Code (HGB), it must be assumed that the invoice amount is to be collected in cash or the form of an equivalent means of payment if the contracting parties have agreed that the freight may only be delivered to the recipient against the collection of cash on delivery. The carrier acts as a collection agency. 

Document inkasso 

Document collection is the collection of payments from credit institutions on the basis of commercial papers or a combination of commercial and payment papers. 

Document collection in foreign trade is a payment condition in which documents are handed over to the importer, who is obliged to pay against payment in cooperation with credit institutions, or to the exporter, who receives payment in return for accepting bills of exchange. The interests of both trading partners are balanced in the contractual processing of the payment and in a contractual delivery. 

In the sales contract between the exporter and the importer, payment via the collection is initially considered a payment condition. The exporter submits the accompanying documents to the bank as a collection document. He then gives the bank a collection order. These documents are usually: 

  • Certificate of Origin 
  • Commercial invoice 
  • Waybill 
  • Customs invoice 
  • Insurance policy 

Inkasso companies 

If the collection of third-party claims carries out as an independent business, a legal service requiring a permit is present. Exceptions to this are fringe benefits that are related to another activity. 

In the case of inkasso in one’s name, it is only a case of inkasso if, after the assignment, the purchaser of the claim (assignee) transfers the proceeds to the old creditor (assignor). There is then either a collection association based on an agency contract with the nature of a service or if the buyer of the receivables (factor) does not assume the economic risk of collecting the receivables of the old creditor (customer) within the framework of the financing through fake factoring. The collection association is an assignment solely to legitimize the new creditor (assignee) to collect the claim. Concerning the debtor, the assignee has the full rights of the obligee; with the old obligee (assignor) he is merely a contractor who is obliged to surrender the proceeds to the assignor; contract law applies. 

Another form is the power of attorney to collect, which only authorizes the proxy to collect claims from the debtor in his name on behalf of the creditor who gives the power of attorney. In Germany, debt collection companies must register in the legal services register (RDG). 

Duties of the inkasso companies 

The tasks of the debt collection company base on classic credit methods. In general, the duties of a debt collection company are as follows: 

– Pre-judicial debt collection 

The recovery of claims that have been reported to the debtor and are in default (delay in paying the debt) but not yet legally prosecuted (no judicial process and no enforcement order) 

– Applying to law enforcement proceedings and receiving an enforcement order 

– Collection of claims with execution order 

– Notification of the debtor’s bankruptcy 

– Advice on debt and receivables management 

– Credit checks of borrowers 

– Buying accounts receivable 

– Follow-up procedures 

Customers  

In particular, industries with many customers such as mail order, telecommunications, energy supply, banks, and insurance companies give debt collection companies a commission. In addition, collection agencies can employ small businesses, craftsmen, and individuals.