Posted by FedMan on January 18th, 2018

International Debt Collection

Recovering International Debts does not have to be expensive

International Debt Collection

Boundaries and borders no longer exist in the Business world today with companies frequently doing some form of international trade resulting in a greater need for International Debt Collection services. Since the Brexit vote alone, there has been a reported increase in the number of European Commercial debts requiring recovery.

For a company to function and grow it is essential that they receive money that is owed to them. However, all business will encounter a client who is unwilling to pay and with an increase of trade being international, it can be daunting recovering money when the debtor lives abroad.

Yet, you can protect yourself from these situations by creating contracts, which will aid you when waiting for payments that have not arrived.

The European Order for Payment (‘EOP’)

According to the European Parliamentary Research Service, In order to supplement the existing national order for payment measures, the EU legislature created a European Order for Payment (‘EOP’) procedure. The procedure is available for cross-border claims for money, mainly those arising from a contract. It is based on standard forms and the claimant does not need to prove the case before an order is issued. Once an EOP is served upon the defendant, they may oppose it. This then makes the EOP unenforceable and the case is moved onto standard civil proceedings.

This is aimed at combating the costs and time of cross-border debt collection.

Foreign courts

If you are unsure of your nation’s court regarding their ability and speed of recovering your money from a debtor abroad, a creditor does have the right to appeal to a foreign court.

By choosing a foreign court you could avoid the risk of exemptions on the debtor’s part, whilst the case is in process.

International Arbitration

The International Arbitration Attorney Network defines international Arbitration as, “one of the most effective ways to resolve a conflict, offering a final and binding solution when parties are unable to agree upon settlement and without taking a matter into court. This technique involves one or more arbitrators reviewing the dispute and making a final and binding decision. When arbitration awards are rendered in international disputes, they are typically enforceable throughout the 149 States that are Parties to the New York Convention.”

Compared to domestic court proceedings international arbitration has many benefits such as;

Speed –The whole process can be a great deal faster than traditional court procedures since there is no appeal especially if the parties agree to expedite arbitration proceedings.

Cost – Traditional court cases can last years, especially if there are appeals, which means an increase in costs over time. Because the process is quick, the entire cost can be considerably less.

Privacy – A main advantage is that there are no public hearings with arbitrations, which means that the case is confidential and will take place in private rooms. When a decision is made they are not published, with the exemption of international investment arbitrations, which are arbitrations involving States.

Simple – Traditional court procedures can be very time-consuming and confusing when they are motion-based. Arbitration cases the practical rules tend to be far simpler, flexible and may be customized by the parties.

Practical and cost effective solution

The recovery of debt from an international client can be successful if an individual relies on specialists with experience in the sector.

As well as being 1st choice for Commercial Debt Collection in the UK, Federal Management also specialise in International Debt Collection, using our network of trusted partners ensuring we have capability to collect monies almost anywhere in the world upon request.

If you or your Business are experiencing problems with non payment from a International customer, get a free pre action assessment of your debt collection options today and speak with our expert New Business Team.

Rating