572,202 Promissory Notes Were Protested in Turkey in 2020!

In transactions between debtors and creditors, promissory notes serve as legally binding documents ensuring the payment of debts in exchange for goods or services. These notes have a set maturity date, and if payment is not made within two business days following this date, the creditor has the right to protest the promissory note. Protesting a note that has not been paid is crucial, as failing to do so on time may result in the creditor losing their right to claim payment from endorsers.

The protest, sent through notaries, serves as a formal warning to the debtor, indicating that interest will accrue daily on the unpaid amount after the note has been protested. Without this protest, no interest can be added to the unpaid debt. If the debt remains unpaid, the creditor can initiate legal proceedings, which may result in the seizure of the debtor’s assets such as wages, homes, vehicles, or bank accounts.

In Turkey, there are 29 billion TL worth of protested and unprotested promissory notes. The average value of protested notes has increased over time, though the number of notes remains steady. According to data from the Turkish Banks Association Risk Center, in May 2021 alone, 49,445 notes with a total value of 894,329 TL were protested.

In 2020, 572,202 promissory notes worth 11.22 billion TL were protested, while in 2019, 916,169 notes worth 21.13 billion TL were protested. The number of notes paid after being protested was 89,585 in 2020 and 121,182 in 2019. These figures show that only 13–15% of protested notes are subsequently paid, a rather low rate.

The general process for promissory notes is as follows: the note is signed, delivered to the bank, processed, and payment is made by the debtor. After the debtor pays, the note is returned to them. Managing the payment of multiple notes, tracking their due dates, and physically going to the bank can be a challenge, especially for debtors with several notes.

Semosis, a platform designed to facilitate secure, easy, and fast promissory note payments, provides significant advantages for both creditors and debtors. With Semosis, there is no need to visit a bank branch; payments can be made from anywhere at any time. The platform also allows users to track their notes, send automatic reminders to debtors, and manage the entire process effortlessly.

Semosis is the solution for avoiding non-payments and promissory note-related problems, offering a secure and convenient way to handle promissory note payments!