Global trade has grown, and businesses at every level now buy and sell internationally, meaning there is a high demand for international trade. As a result, there are many opportunities for debts to occur. International debt recovery is when a collection agency actively tries to recover money owed from international debtors.
International debt collection is a complex task due to navigating local laws and language barriers. That’s why it’s vital to team up with an agency with expertise in international debt recovery.
How Does International Debt Recovery Work?
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.
We implement several tactics to ensure the international collection process is successful.
- Open channels of communication: We call, text and email the debtor in their local language with respect to the time zone differences.
- Escalation procedures: If the foreign debtor does not respond to our initial outreach efforts, we partner with a local agency from the debtor’s country. The local agent will attempt to retrieve the outstanding invoices.
Federal Management offers a comprehensive global debt recovery service. Our aim is to collect any unpaid invoices before resorting to expensive legal proceedings. We have tried and tested methods that help recover debts, resulting in less than 1% of our cases requiring legal action.
The Challenge of Collecting Debt from Foreign Countries
Collecting debt from overseas countries can be daunting for individuals and businesses. As the UK’s business community grows, so do the complexities of international trade and the potential for unpaid debts.
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.
Many organisations 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 debt collection, our friendly team is happy to assist.
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 an international debt collection agency. They’ll ensure collecting debt from an overseas debtor is efficient and cost-effective.
There are many advantages when working with a professional debt collection agency. However, finding the right agency is not always an easy process.
The agency you choose must have a working knowledge of the local jurisdiction of the debtor’s country. This will 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 retrieve payment from anywhere in the world.
Our 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, law firms class a debt of under £5,000 as a “low-value” debt. While a law firm can attempt enforcement with debt at this value, the debt collection cost would exceed it. For example, an Italian law firm may require a €30,000 upfront retainer for foreign clients that want to utilise their 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 when a specialist debt collection agency can effectively retrieve 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 for you to get paid.
Ultimately, relying on solicitors can lead to costly delays and lost opportunities, making it crucial to consider debt recovery with higher chances of success.
Benefits of Hiring a Collection Agency for Overseas Debt
Instructing a specialist recovery agency is the best way of ensuring success in collecting debt from foreign countries. It is important to find a company that can effectively support your international debt recovery efforts.
What Makes a Global Debt Recovery Service Successful?
The effectiveness of an international debt collection agency depends on several key factors. These are:
- The quality of the agency
- Their ethics
- Their compliance with overseas and UK law
- Their global network
As with any service-based industry, there are both good and bad options. Many low-quality agencies claim to be able to handle international debt collection.
This may be a way for them to build creditability when, in fact, they can not guarantee that you’ll receive payment.
To lower the risk, consider the following questions:
- Do they have an assured network of vetted 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 should consider dealing with a different collection agency. This will take you more time but 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 unpaid invoices, such as writing the debt 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. We aim to maximise the potential of recovering your overseas debt with the least cost to you. Here are just some of the reasons why individual clients and 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 collect debt from foreign countries. Our dedicated overseas debt collection team has recovered millions of pounds from foreign debtors.
Trustworthy International Connections
We have a global network of trusted and accredited debt collection partners. With this extensive network of experts, we can retrieve payment 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. This way, you can pay attention to 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 secure payment of your debt, we won’t waste your time or money.
Speak to our experts today for more information on how we can help with collecting debt from foreign countries.
Collecting Debt from Foreign Countries | Get Expert Help From Debt Collectors Now
If you need help to recover unpaid invoices, our friendly debt collection team is happy to assist.