The Challenge of Collecting Debt from Foreign Countries
People and businesses alike need help collecting debt from countries abroad.
Collecting debt from overseas countries can be a daunting task for both individuals and businesses. As the UK’s business community grows, so do the complexities of international trade and the potential for unpaid debts.
Global trade has grown, and businesses at every level now buy and sell on an international scale, meaning there is a high demand for international trade. As a result, there are many opportunities for debts to occur. These include:
- People may choose to dispute invoices or ignore requests for payments.
- They might abscond or stall a payment with excuse after excuse.
- Others think you cannot enforce a debt they owe you because they are in another country.
Regardless of the case, collecting debt from foreign countries is a constant headache for business owners.
When facing international debt, many are unsure of what to do when a debtor won’t pay. To help you navigate this challenging process, we asked our debt collection experts the best way to approach collecting debt from overseas countries.
Many business owners view recovering a debt owed by someone overseas as a great hardship. Fortunately, this is not the case when you use a company accredited by the Financial Conduct Authority (FCA) and Credit Services Association (CSA).
Collecting Debt from Foreign Countries | Get Expert Help From Debt Collectors Now
If you need help with a Debt, our friendly team of Debt Collection Experts is happy to help you today,
Why a Specialist Debt Collection Agency Is the Best Choice
Collecting debt from overseas can be expensive, yet unpaid international debt affects about 80% of UK businesses. The smartest move? Hire a professional debt collection agency. They’ll recover your funds efficiently and cost-effectively.
There are many options when collecting debt from an overseas professional debt collection agency.
Finding the right agency, however, is not always an easy process. The agency you choose must have a working knowledge of local jurisdiction to ensure the debt recovery process is legal and fair. Federal Management, for example, has a global network of trusted collections partners with a deep understanding of local laws and jurisdictions. This means that we can collect debt from anywhere in the world.
Each agent at Federal Management is an expert at collecting debt from foreign countries. As well as this, a debt collection agency will provide a world-class service at a low cost with no hidden or abortive fees.
Why International Solicitors May Not Be the Best Option
Many business owners choose to reach out to solicitors for help when collecting debt from foreign countries. Quite often, solicitors class some international debts as “low value”.
Many law firms class a debt of under £5,000 as a “low-value” debt. Whilst a law firm can attempt enforcement with debt at this value, the cost would exceed it. For example, one Italian law firm requires a €30,000 upfront retainer. This is for foreign clients that want to utilise his services.
With this in mind, many businesses choose to “write off” the debt. They put the loss of the debt “down to experience” and abandon the prospect of recovery. This is never a good idea.
This is especially true when a specialist agency can effectively collect debt from countries abroad at a lower cost. Plus, solicitors and court proceedings can be even more costly for larger international debts.
Additionally, solicitors can take a very long time to produce any form or result. Court processes can take a long time, and foreign systems may take even longer.
Ultimately, relying on solicitors can lead to costly delays and lost opportunities, making it crucial to consider more efficient options for debt recovery.
Why Hire a Collection Agency for Overseas Debt?
Instructing a specialist recovery agency is the best way of collecting debt from foreign countries. When you are searching for an agency, it is important to find one that is effective at recovering international debt.
What Makes a Debt Recovery Agency Effective?
The effectiveness of an international debt collection agency depends on several key factors. These are:
- The quality of the agency
- Their ethics
- Their global network
- Their international connections
As with any service-based industry, there are both good and bad options. Many low-quality agencies promote themselves as being able to offer international debt collection services.
This may be a way for them to provide some form of creditability of their service, when in fact they can not provide one at all.
You should dedicate a good amount of time to looking for an agency to help with collecting debt from foreign countries.
You should look for answers to the following questions:
- Do they have an assured network of vetted and professional foreign agents in every major state and country across the globe?
- Do they have bilingual speakers?
If the answer is no to both or either, you may wish to look for another option. This will take you more time, but this is a better option than placing the recovery of your £10,000 debt in their hands.
If you did, you may end up having more issues than an unpaid debt, such as writing it off.
With some research, due diligence, and proactive decision-making, you can find the best agencies for the job.
Why Choose Federal Management for Overseas Debt Recovery?
Federal Management is the UK’s leading professional international debt collection agency. Federal Management will maximise the potential of recovering your overseas debt with the least cost to yourselves. Here are just some of the reasons why businesses in the UK trust us to collect their unpaid global debt.
- Accredited services: As a testament to our dedication and expertise, we have been awarded the ISO9001 accreditation for our professional and quality management systems.
- Years of experience: Since 2004, we have helped thousands of businesses with collecting debt from foreign countries. Our dedicated overseas debt recovery team have recovered millions of pounds in foreign debts.
- International connections: We have a global network of trusted and accredited debt collection partners. With this extensive network of experts, we can collect debt from anywhere in the world.
- Ethical approach: We always utilise an ethical, trustworthy and professional extension for your credit control process. We do not charge hidden fees, meaning complete transparency in our services so you can focus on what matters most — recovering your debts.
- Free, frank debt appraisal: One of our experienced debt collection experts will tell you about the realistic possibilities of recovering your money through a free pre-action assessment. If we can recover your debt, we can take the first steps to get your money back. In the unlikely scenario we cannot recover your debt, we won’t waste your time or money.
For more information on how we can help with collecting debt from foreign countries, speak to our experts today.
Collecting Debt from Foreign Countries | Get Expert Help From Debt Collectors Now
If you need help with a Debt, our friendly team of Debt Collection Experts is happy to help you today,