5 Common Debt Collection Myths

Common Myths About International Debt Collection

There are many misconceptions about international debt collection by people in the UK.

When people think of recovering debts from someone who’s in a different country, there are a number of commonly believed falsehoods in circulation. One is that achieving success in your pursuit of repayment is nigh on impossible. Another misconception is that it will be too expensive to pursue what is owed.

If you are not using a proven international debt collection specialist then some of these negative comments could be true. But having the right people on your side can make the outcome much more favourable.

This article explores the five most common myths and mistakes businesses make in terms of recovering their foreign and overseas trade debts.

Myth 1 – “It’s best to write it off and claim the tax back”

When there is a real possibility that you could still get your money back, it’s much better to pursue it rather than report it as a loss.

Losses of this kind can reflect badly on your company and could impact your freedom with regard to attracting investment going forward. In fact, even if you’ve already written the money off, it can still be recovered by an international business debt collection specialist — it’s a bit of a no-brainer.

Myth 2 – “If your debtor isn’t an English speaker, you’ll have no chance of success”

The chances of your debtor not speaking English, the most widely spoken language in the world, are pretty low. There’s always the possibility that they’ll pretend that they don’t speak English. Even if this is the case, an international debt collection specialist will have trusted associates in the country the debtor is in, so the language barrier shouldn’t be an issue.

Not only that, but the retrieval of owed monies from all around the world is quite a common practice, so you’re most certainly not on your own.

Myth 3 – “You’ll need to pursue the debt through the courts in the debtor’s country”

If the contract you have with the debtor has a jurisdiction clause in it, then it is possible to make your case in the UK, get the decision you’re after, and then convince the court at the debtor’s end to enforce the ruling.

Although this process sounds convoluted, it does happen, even in far-flung countries like China, so don’t be put off.

Myth 4 – “Too expensive – After the fees are taken out, we’ll have nothing left”

A reputable international debt collection agency should typically provide clarity from the beginning when it comes to the charges involved. Quite often, they also provide a ‘No Collection, No commission’ service and, after securing your recovery, will send you your funds via the most cost-effective method.

They are regulated and obliged to act with your best interests at heart and under these conditions, it would be foolish not to at least try.

Myth 5 – “It takes forever to get your money”

Granted, some cases can drag out, depending on its complexity and the country in which the debt is located. However, the overwhelming majority of overseas commercial debt collection cases have a resolution within a comparatively short space of time, especially if the third party you use specialises in recovering this kind of debt.

The objective is to recover monies owing as quickly as possible as the agency will effectively be paid when the monies are collected.

In Summary

So, there you have it. There is definitely mileage in pursuing a debt that’s owed to you by someone in another country. With more and more people working remotely from all four corners of the globe, this kind of scenario is becoming more common. The five myths we’ve busted are just a selection of falsehoods that exist within UK business mediums.

There are many so-called ‘experts’, but business is like life, and we all know people who talk nonsense. The longer these false statements are in circulation, the longer people are going to miss out on monies owed to them.

Foreign debt collection is as easy as you make it for your business. Working with a proven international debt collection service provider like Federal Management will help massively.

• There are no rainbows created or smokescreens to ‘fee-earn’. Just straightforward, honest, fact-based advice from experienced practitioners.
• We perform due diligence and investigate every enquiry we receive.
• A transparent appraisal is provided so you know if the debt owed to you by a foreign customer is recoverable.
• All enquiries are treated in confidence.

Speak to our friendly international debt collection experts today for more information about how we can help your business recover unpaid debts internationally.

Posted on November 9, 2018