Selling isn't enough: without timely payment, cash flow gets tight, management loses focus, and the risk of default extends throughout the entire chain. Collecting payments requires method, firmness, and respect for the law, balancing debt recovery with preserving the business relationship.

This practical guide shows, in a straightforward way, how to prepare contracts that avoid litigation, how to negotiate effective agreements, and when to proceed with injunctions, declaratory actions, and enforcement.

Essential legal framework

Before acting, it is helpful to ground the plan in the legal framework governing Portugal:

• Decree-Law No. 62/2013: Payment terms in commercial transactions, commercial default interest, and a minimum fixed compensation of 40 euros for collection costs.
• Civil Code: General rules of obligation, legal interest, penalty clause, default and prescription (generally 20 years, without prejudice to special periods).
• Decree-Law No. 269/98 e Decree 220-A/2008: injunction procedure at the National Injunction Desk (BNI) and enforceable title.
• Code of Civil Procedure: Declaratory action, enforcement action, seizure of assets, installment payments, and opposition.
• Uniform Law on Bills of Exchange and Promissory Notes: Credit instruments (when applicable to checks, bills of exchange, and promissory notes).

Essential clauses to avoid debt.

The best way to collect is to start before the default: a clear contract reduces litigation and speeds up payments.

• General terms and conditions of sale/supply: Payment terms, discounts, title retention, and late payment penalties.
• Guarantees: surety/guarantee, pledge/mortgage, reservation of ownership, retention of ownership of equipment until full payment.
• Proof of delivery and acceptance: Signed guides, CMR, acceptance of services via email, support platforms.
• Billing and communication: Timely issuance, certification, delivery with proof of receipt, and digital archiving.
• Jurisdiction clause and applicable law: Choice of forum and application of Portuguese law when appropriate.

Warning signs and internal classification

Not all debt is created equal. To make an efficient decision, classify your debts:

• Credit seniority and payment history.
• Debt amount in relation to customer profitability.
• Existence of real or personal guarantees.
• Probability of insolvency or dissipation of assets.

Out-of-court debt collection: firm, documented, and with deadlines.

Start by taking a friendly but professional approach. A disciplined approach closes many cases without litigation.

1. Formal interpellation: Email/letter identifying the invoices, commercial late payment interest as per the terms of Decree-Law 62/2013 and a short payment term.
2. Validation call: Confirm receipt, detect objections, and obtain a date commitment.
3. Proposal for a written agreement: Payment plan with immediate down payment, interest, and early maturity clause.
4. Confession and acknowledgment of debt: A document signed by the debtor, including the date, amounts, schedule, interest rates, and jurisdiction of the courts; if possible, with a guarantee.
5. Additional guarantees: Pledge of equipment/stock, reservation of title in new supplies, guarantee from the managing partner.
6. Fixed compensation of 40 euros plus collection costs: apply when legally permissible, without waiving the right to interest.

Injunction: the legal shortcut to liquid credits

When the debt is certain, liquidated, and due, an injunction is the preferred course of action.

• Where: National Injunction Desk (BNI), with electronic submission.
• What to present: Details of the parties involved, contract/terms, invoices, delivery notes, communications, and interest calculation.
• Result: If there is no opposition, an enforceable title (injunction order) is issued, allowing the execution to proceed.
• Opposition: If there is opposition, the process goes to court as a declaratory action; the evidence you have prepared will make all the difference.

Declaratory action: when there is litigation.

If the debtor disputes the debt or raises objections, the declaratory action clarifies the right, proves the debt, and prepares for enforcement.

• Initial petition with simple facts and organized evidence.
• Claim for commercial default interest and fixed compensation.
• The possibility of precautionary seizure measures when there is a serious risk of debt collection being thwarted.

Enforcement and seizure: transforming judgments and titles into money.

With an enforceable title (uncontested injunction, judgment, authenticated debt acknowledgment, or credit instrument), the enforcement process begins.

• Locate assets: Bank accounts, customer loans, vehicles, real estate, shares/shareholdings, equipment and inventory.
• Seizure and sale: To provide the enforcement agent with information for asset searches and indicate priorities.
• Agreement in progress: It is possible to negotiate payment in installments with real/personal collateral, under procedural control.

Commercial default interest and compensation

Interest discipline is essential for effective debt collection.

• Commercial default interest: semi-annual rate published by the Bank of Portugal under Decree-Law 62/2013.
• Fixed compensation: 40 euros per overdue invoice, plus compensation for proven collection costs where applicable.
• Penalty clause: Possible by contract, provided it is proportional and not abusive.

Time limits and statute of limitations: act in time.

The general rule for prescription is 20 years, but special periods may exist depending on the sector and the nature of the service. Interruption by summons in an injunction/lawsuit "resets" the count and protects the credit. When in doubt, act early and document formal demands.

Sectors with specific characteristics

Each activity has nuances that influence the collection strategy.

• Construction and building works: Measurement reports, provisional/final acceptance, guarantees and retentions.
• Logistics and transportation: CMR, responsibilities and claim deadlines.
• Recurring technology/services: Service suspension due to non-payment and protection of intellectual property.
• Retail/distribution: Penalties for returns and annual commercial agreements.

Common mistakes that are costly

Learning from typical mistakes helps shorten the path.

• Contracts without guarantees or with vague deadlines.
• Insufficient or scattered proof of delivery.
• Verbal agreements without written confirmation.
• Waiting too long and losing negotiating power.
• Lack of knowledge regarding statutory interest and available compensation.

Ready-to-adapt practical models

To speed up the collection process, have these basic templates ready.

• Formal request with calculation of interest.
• Confession and acknowledgment of debt with surety.
• Payment agreement with early maturity and guarantee.
• Application for an injunction with standardized attachments.

Bridges through commercial relations

Collecting debts without destroying the relationship is possible. When dealing with debts from strategic clients, consider solutions that preserve the future:

• Discounts for prompt payment are conditional upon full payment.
• Provide payment in advance until the transaction history stabilizes.
• Replace weak guarantees with robust real/personal guarantees.

Conclusion

Effective debt collection involves combining contractual prevention, disciplined negotiation, and the judicious use of injunctions, declaratory actions, and enforcement. With organized evidence, correct application of interest and guarantees, and swift decisions, it's possible to transform credit into cash without damaging strategic relationships. When there is a risk of insolvency, asset dissipation, or technical litigation, a clear procedural plan saves months and costs.

If you need structure and speed, count on specialized support: we work on contracts, negotiation, injunctions, lawsuits, and executions, focusing on results and preserving the commercial relationship when it makes sense. We work side-by-side with management and accounting to structure evidence and accelerate receivables. Talk to one of our experts. Solicitor or schedule an appointment with our lawyers in Braga.