There are many misconceptions held about International Debt Collection and this article explores the most common myths and mistakes Businesses make in terms of recovering their foreign and overseas trade debts.
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 being that achieving success in your pursuit of repayment is nigh on impossible and that’s it’s not worth the effort of trying. Whilst this could be true if you do not have a proven international Debt Collection specialist on your side and enlist the assistance of professionals, the outcome could be very much more favorable.
So, to provide some clarity on the matter, we take a look now at 5 widely believed falsehoods.
Myth 1 – “It’s best to write it off and claim the tax back”
When there is a realistic 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 on your freedom with regards to attracting investment going forwards. In fact, even if you’ve already written the money off, it can still be recovered by a International Business Debt Collection specialist, it’s a bit of a no brainer.
Myth 2 – “If you 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 – is pretty low. There’s always the possibility that they’ll pretend that they don’t speak English, but 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 the around the world is quite a common practice, so you’re most certainly not 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 – “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 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 has specialism in 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.
So, there you have it, there is definitely mileage in pursuing 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 5 myths we’ve busted are just a selection of falsehoods that exist and the longer they remain in circulation, the longer people are going to miss out on money they’re entitled to unnecessarily.
Just make sure you’re not one of them.