The indebtedness between companies has been a serious issue in Bulgaria for a long time. Data of the business companies shows that the debts come to over BGN 200 mln. /EUR 100 mln./. Pending debts also complicate business relations in Bulgaria. New information software, called DebtNet changes the status quo and gives the companies the chance to see their debtors online and get their money back. This public pressure may compel many companies to pay their debts more regularly.
The companies struggle against delayed payments differently at the moment – through repeated verbal and written reminders, which often result in court procedures. There are firms in Bulgaria nowadays that deal exactly with bad credits. The new information system DebtNet offers additional possibilities for solving the problem before entering the court. As a matter of fact the delayed payment issue has besides the financial side also its ethic one. Loyalty and correctness in business can attract new partners, while their lack can make the current ones pull back, which reflects on the future of a business anyway. Mr. Vladimir Georgiev, CEO of the DebtNet system, explains:
“DebtNet is an online information system that is a new instrument for fighting bad credits. It displays them to the public on the Internet without any restrictions. The other registers, for instance the one of the Bulgarian National Bank show only that part of the obligations that is towards bank institutions. On the other hand such registers are not accessible to everyone, which is definitely a problem. We inform the community of the existence of a certain company’s bad credits. The informed partner of the company is able to react adequately.
The actuality of the system is another advantage, besides its accessibility. Although DebtNet has been functioning only for a month and a half now, information for about 1000 debtors that owe around EUR 50 mln. can be found in it. The creditor inserts the entire information about his or her company in the system, which guarantees correctness. A minimum of necessary information about the debtor has to be inserted too. If anyone wants to get information of a trade partner’s correctness, he or she has simply to insert the name of the firm in the search engine. The system is updated regularly – if the debtor had paid its obligations, its name has been removed from the site. Mr. Jorn Holgard, an expert from a similar credit register in Netherlands is the consultant of the project. There have already been created different bureaus of this kind in many of the North European countries. They not only register the debtors but also prepare assessments of the credit risk of the companies. This can be very useful for investors that seek a reliable partner, Mr Holgard explains. The information reduces the risk of bad credits.
English version: Zhivko Stanchev
