New laws to allow SMEs to use court system to chase debts abroad
New laws have come in to effect that allow SMEs to chase outstanding debts in other EU states.
Around one million small and medium-sized enterprises in the EU face problems chasing cross-border debts.
The European Account Preservation Order, as it is known, will not apply in the UK or Denmark.
Ruth Deasy of the European Commission said that the process is simple.
"Well, it makes it really simple, even for the smallest company, to apply to the court where the person who owes them the money, the company, is based," she said.
"They just have to have the name of the bank and the name of the company, and that court has 10 days to put a blocking order on the company's account."
