A customer has been overdue on their loan for a year and is now threatening to sue. Is there any way to get the money back faster?

“My company has been owed money by a client for over a year. Every time we try to collect, they say, ‘Go ahead and sue me.’ Is there any way I can get my money back faster in this situation?”

This is a fairly common situation in commercial disputes in Vietnam, especially with small and medium-sized enterprises, agencies, service providers, or manufacturing companies. Many clients are late in paying not necessarily because they are unable to pay, but because they believe the other party will be reluctant to sue due to lengthy procedures, time pressure, and dispute resolution costs.

However, “sue” is not always the first step or the only way to recover debts. Before filing a lawsuit, businesses should usually review all records such as contracts, emails, accounts receivable, invoices, meeting minutes, or documents showing that the other party has received goods or used services. This is a crucial factor because the ability to recover debts often depends heavily on the quality of the evidence a business possesses.

In many cases, simply sending legal documents, payment requests, or having a lawyer officially represent the debtor can create significant pressure to encourage the debtor to negotiate or make payments. Furthermore, many businesses, due to prolonged debt collection, experience data loss, employee turnover, or changes in the business status of their partners. This makes subsequent resolution much more difficult.

Another issue many businesses overlook is the statute of limitations for filing lawsuits in commercial contract disputes. Therefore, prolonged delays can directly impact the ability to protect one's rights later on.

In reality, the appropriate course of action depends on the amount of debt, the debtor's operational status, existing business records, and the debtor's actual objectives. Some cases are suitable for quick negotiation, while others require stronger legal action to avoid further delays.

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