Debt Collection in Czech Republic
Debt Collection in Czech Republic
In the modern business world, it has become increasingly common for businesses in the UK to work with international companies.
It is true that some businesses rely on the income that international business generates more than others.
The Czech Republic is a country that companies in the UK deal with on a regular basis. In 2020, the United Kingdom exports to Czech Republic was totalled at around $2.63 Billion.
This figure demonstrates the trade relationship between the two countries, consisting of mostly machinery, electronics and cosmetics.
Sadly, this large amount of business increases the chances the clients will not pay for goods on time or at all.
It is common for businesses to experience unpaid invoices, but when these become frequent they must be investigated.
Overseas clients falsely try and get away with not paying as they think they are safe due to the distance.
International debt is a very common problem and action needs to be taken as soon as possible when this happens.
Are you a business owner that has a Czech client refusing to pay? You need to look into a dedicated debt collection in Czech Republic solution.
We have put together this information to help business owners deal with debt recovery in Czech Republic.
Recovering a Debt from Czech Republic
Debt collection in Czech Republic is perceived to be a complex and challenging task that needs a specific skill set to carry out.
Understanding of various factors like local laws, language barriers etc. also has to be taken into consideration. These all contribute to how long it will take to recover any amount of money that is owed.
For example, the statutory limitation period for debts in Czech Republic is 3 years. This is different to the United Kingdom, where debts become statute-barred after 6 years.
We understand that this may cause a lot of anxiety and stress if you are inexperienced in this.
It is important to start the debt collection process as soon as possible so that your business’s cash flow is not put in jeopardy.
Thankfully, there are solutions available that have the expertise and knowledge required to be successful.
Methods for Debt Collection in Czech Republic
There are a handful of methods available for when international debt collections are needed.
Choosing the right one is crucial to the time it takes to recover the money and how much of it is recovered.
In the first instance, many business owners choose to independently recover the debt. This is due to not having the knowledge of other methods that are available.
Trying to recover a debt alone can be a costly task that wastes company resources. These should be used to carry out beneficial tasks such as growing the business.
A more reliable option is to instruct a law firm to take on legal proceedings against your debtor.
Debt collection solicitors have been a trusted method for many businesses for hundreds of years.
Despite the popularity of this method, it is known to be expensive and can take a long time if taken through the courts. Some law firms can charge up to £200 per hour on top of any court costs that will need to be paid.
International debt collections are known to take longer to complete which may end up costing you more money. It is in your best interests to find a debt collection method that is affordable whilst providing successful results.
The best and most trusted way to recover money owed in Czech Republic is by using a dedicated international debt collection agency.
Federal Management is one such agency and has recovered millions of pounds worth of debts for their clients since 2004.
Instructing Federal Management for Czech Republic Debts
Our debt collection specialists are experts when it comes to recovering debts from clients based in Czech Republic. We provide a low-cost and effective debt collection service.
Federal Management is widely known as the UK’s leading commercial debt collection agency.
The success rates that we provide are unrivalled and average up to 90% on all undisputed debts. Additional to this, we operate low commission rates that start from as little as 6%.
We have demonstrated experience recovering debts for businesses virtually anywhere in the world.
This is achieved by having a global network of experts with knowledge of country-specific debt collection practices.
If you are owed money by a client in Czech Republic, do not hesitate to contact us today.
Debt Collection in Czech Republic – Frequently Asked Questions
What should I do if I am owed money in Czech Republic?
If you have a client that owes you money, you must take action as soon as possible. The best course of action is to use a debt collection agency.
How long can a debt be recovered in Czech Republic?
Each country has its own time limits for how long a debt can be recovered. In Czech Republic, this period of time is 3 years, unlike the UK which is 6 years.
How much does debt collection in Czech Republic cost?
Every case of debt is unique and must be priced according to its own circumstances. Our advisors can provide a cost once they have asked a few quick questions to understand the situation a little more.
Is international debt collection illegal?
No, debt collection overseas is not illegal. No matter where you are based in the world, you deserve to be paid back the money that is owed to you.
Should I use a debt collection agency or solicitor?
It is far more beneficial to use an agency rather than a law firm. Solicitors are known to charge a lot of money for a service that can sometimes take a long time to complete.