In debt collection activities, enterprises often pay attention to effective debt collection measures such as negotiation, lawsuit, or using professional and legal debt collection services of law firms. However, one of the activities that bring a lot of value and even affect the success of the debt collection process that many enterprises do not know or ignore is the preparation and confirmation of minutes of debt comparison to the debtor. Why is the minutes of debt comparison so important? TNTP will give a reasonable explanation in the following article

1. What is a minutes of debt comparison?

Minutes of debt comparison is the verification of the debts of the enterprise according to the figures in the accounting books and the actual figures when the enterprises perform the contents of the contract/transaction. If the figures in the accounting books and reality match, the contracting parties will conduct a written confirmation. The document certifying the entire amount of debt that has been signed and stamped by the parties for certification is called the minutes of reconciliation record.

To be considered a complete minutes of debt comparison, the most important thing is that the document must be signed and confirmed by the parties to show the consistency of the figures, as well as the remaining payment obligations. If a minutes of debt comparison is only confirmed by one party, will not be valid and will not be considered a complete minutes

2. Value of minutes of debt comparison

In accounting activities and revenue and expenditure management, the minutes of reconciliation record is an important document that helps accountants manage and control the payment process of the company’s debts or plan to perform the debt collection with partners. This is a document that helps enterprises have a basis to evaluate revenues, expenditures and debts. The continuous confirmation and comparison of debts also helps enterprises to assess the debt repayment ability of themselves or partners.

In the case of debt collection from the party, the minutes of debt comparison becomes even more important. At that time, the enterprise has a solid basis to make a payment request based on the exact confirmation of the debtor. This directly makes the debtor have no basis to reject the debt amount when they have previously verified on the minutes of reconciliation record.

Even when enterprises use professional debt collection services from law firms, having a minutes of debt comparison will help law firms easily work with debtors. Instead of having to regroup the debt by checking the amounts from the invoices or receipts of goods to confirm the exact amount owed when the parties do not have a minutes of reconciliation record.

In addition, it is impossible not to mention the value of the minutes of debt comparison when the enterprise initiates the lawsuit against the Court and the Commercial Arbitration Center. At that time, the minutes of debt comparison is an important evidence that directly affects the legally effective result of the Decision/Judgment. Because normally, the Courts and Arbitration Centers, when considering the lawsuit claims of enterprises asking the debtor to pay money, always ask enterprises to prove in detail the data leading to the remaining debts of the parties to use as a basis to settle the case. The clearer and more complete the minutes of debt comparison, the easier it will be for the Court/Arbitration Center to make an accurate assessment and have a full view of the case. Moreover, it is evidence that if the debtor has confirmed the obligation to pay the debt, as well as the specific amount of the debt, then the debtor will not be able to give any reason to not make payment of the debt. At that time, the Court/Arbitration Center will have a solid basis to issue the Decision/Judgment to request the debtor to make payment.

Above is the opinion of TNTP to answer the question: “Why does minutes of debt comparison important in debt collection?” Hope this article is useful for businesses.