Overseas Debt Collection in Austria
Debt Collection in Austria
Businesses across the United Kingdom have had long-standing relationships throughout history with companies across the globe.
International trade has quickly become a large part of every business’s core income stream.
In some cases, owners of UK firms may rely on international business more than others.
Austria is one such country that a high number of UK based businesses export goods and services to.
Trading Economics stated that in 2020, the United Kingdom exports to Austria was totalled at $2.78 billion.
Metals, machinery, vehicles and electronics contribute to a large proportion of these exports.
This is a positive statistic and demonstrates the productive trade relationship between the two countries. Despite this, businesses are bound to experience financial issues at some point.
This is true for those that work with foreign clients, as there is a higher potential for these scenarios to occur.
The reason for this is that overseas debtors believe that they can get away with not paying due to the distance.
Do you have an Austrian client that is withholding payment for a service you have provided? Are invoice payment dates regularly being missed?
When this happens and cash flow is affected, it can present business owners with a very stressful situation.
A dedicated solution for debt collection in Austria is needed when clients start to fall behind on payments.
Federal Management is one such solution and has collected millions of pounds worth of overseas debts since 2004.
Before a debt recovery method is chosen, it is also beneficial to know the process behind this.
Undertaking Debt Collection in Austria
Every business owner that is owed money will no doubt feel frustrated and the challenge of recovering international debts can amplify these feelings.
If you let your feelings get the better of you, this may give the debtor grounds to withhold payment even longer.
It is important to remain calm and professional as there are options available that can help.
Recovering debt on a local, national or international scale requires a certain set of skills and expertise to be successful.
There are other factors that need to be understood such as language barriers, cultural changes, communication differences etc.
Having a knowledge of these will greatly increase your business’s chances of debt collection success. After all, each of these factors can play a part in how long it takes to recover the money.
It is important to start the debt collection process as soon as possible to ensure cash flow does not stay.
Our debt collection specialists have compiled a list of the methods available to businesses suffering from overseas debts.
Options for Recovering Debt in Austria
The debt collection process in Austria can be carried out in a multitude of ways, with each one offering a different range of success.
Usually, businesses will have a credit control team that will focus on recovering any unpaid debts to the company. This allows other aspects of the business to continue generating income.
If the company does not have an internal credit control team, they may have to recover the money independently.
Sadly, it can take a long time to do this and may result in the wasting of resources and money. This should only ever be undertaken if the person recovering has prior experience of this.
Regardless of this, it is almost always better to instruct the services of a professional. An example of this may be to use a law firm to issue legal proceedings against the debtor.
There are many law firms across Austria and debt collection solicitors have been a common choice for hundreds of years.
Despite its popularity, it can sometimes take a lot of time to produce a result and attorneys fees can be high. These fees are added on top of any court costs that have to be paid and can end up costing more than the debt is worth.
In an ideal world, the company that is owed money should look to recover this in the most affordable way possible. It is counterproductive to spend a lot of money when money is owed in the first place.
Federal Management can provide you with a debt collection service that ticks boxes in relation to cost, success and professionalism.
Federal Management Expert Debt Collection
If you are a business owner that has not been paid in Austria, we can provide you with an effective and affordable service.
Since 2004, our business debt recovery specialists have helped thousands of businesses recover what is owed.
There are many benefits to choosing us to recover your overseas debts, such as:
- An average recovery rate of up to 90% on undisputed debts.
- Our commission rates start from as little as 6% (industry-low).
- A local, national and global team of debt collection experts.
- Agents with specific knowledge of recovering debts across the globe.
The professional service that is provided to our clients ensures that business relationships are not jeopardised.
Debt Collection in Austria – Frequently Asked Questions
I have a client in Austria that has not paid on time, what should I do?
If you have invoices that have not been paid, you need to make sure these are dealt with in a timely manner. If you do not take action quickly, your cash flow may continue to be affected.
Should I try to recover the debt by myself or use a debt collection agency?
It is far more beneficial to choose a debt collection agency than to recover the debt yourself. This can take up a lot of time that should be used to grow the business instead.
How long do I have to recover the money that is owed in Austria?
The period of time before a debt becomes statute-barred in Austria is three years but this can change due to special exemptions. It is best to contact one of our debt collection experts to discuss this in more detail.
What are the success rates for recovering money from a client in Austria?
At Federal Management, we provide some of the highest recovery rates in the industry. For undisputed debts, our average recovery rate is 90%.
How is international debt collection undertaken?
We have a global network of trusted debt collection professionals that have specific experience recovering debts across the world. This means we can recover debts virtually anywhere.