Debt Collection in Hungary

Debt Collection in Hungary

Debt Collection in Hungary

In the modern world of business, international trade has become increasingly easier to navigate.

Many firms across the globe rely on the income generated by international business more than anything. This is especially true for UK businesses, as around 58% of the country’s exports go to EU nations.

Throughout history, businesses in the United Kingdom have built longstanding relationships with organisations in Hungary.

Machinery, vehicles, electronics and pharmaceutical products are among the top exports to Hungary from the UK. The total number of UK exports to Hungary in 2020 was $1.56 Billion.

Despite the good trade relationship between the two countries, this has increased the chances for cash flow issues to arise. More specifically, this has resulted in problems relating to clients not paying.

Owed money can cause several issues for a business’s finances and may affect its longevity.

Businesses face issues related to late payments on a daily basis, but action needs to be taken if these become more frequent.

Are you a business owner that is experiencing a client in Hungary that is refusing to pay? If so, you need to carry out debt collection in Hungary.

Debt Collection in Hungary – What Is The Process?

For those that are affected by non-paying clients in Hungary, this can create a large level of stress. Frustrations can form from the general owing of money, but also from knowing how to get this recovered.

The international debt collection process is perceived to be more difficult to carry out than it is worth. A valid thought for those that are inexperienced in the recovery process, however, all it requires is a certain set of skills.

Various factors need to be considered when recovering international debts, such as time differences, cultural changes, local laws etc.

For example, the statute of limitations for debts in Hungary is 5 years, unless changed by the courts.

The length of time it takes to recover a debt can be altered depending on how knowledgeable the collector is on these.

Almost all of its population speak Hungarian as their main language, meaning an understanding of the language barriers is vital.

Whilst it is understandable to feel helpless in a situation where goods have not been paid for, there are options available to help.

Debt Collection in Hungary – What Should You Do?

When it comes to undertaking debt collection in Hungary, there are many ways to do this.

It is important to choose the correct method of recovery, as each provides its own levels of success and costs.

For example, many companies believe they are best to try and recover the debt themselves.

Whilst this can be effective, the success rate of doing this is extremely low and you may end up wasting a lot of time and money.

You may want to instruct legal persons to recover the debt, such as a debt collection solicitor.

For many years, using a law firm to recover overseas debts has been common amongst business owners. This is due to their expertise in international courts and the relatively high rate of success.

Whilst this is a popular method of debt collection in Hungary, it can be expensive in some scenarios.

The solution for an affordable yet effective debt collection solution is by using a professional agency.

Collecting a Debt in Hungary

Instructing Federal Management – Debt Collection in Hungary

Federal Management has been renowned as the UK’s leading commercial debt collection agency since 2004.

Throughout our long history, we have helped thousands of business owners recover money that is owed by Hungarian debtors.

The service that we provide to our clients maximises the recovery of the money whilst minimising the cost. This allows business owners to receive a cost-effective service that will not further affect cash flow.

We are able to successfully conduct our debt collection services in the 16 different counties within Hungary.

Federal Management has a global network of debt recovery experts that can speak a large number of languages.

This will aid the debt collection process and negate any communication difficulties.

Debt Collection in Hungary – Frequently Asked Questions

My business is unpaid from a client in Hungary, what should I do?

When fees go unpaid, it is important that you take action immediately to recover the money. There are many options available, but it is best to use a professional debt collector.

How long can it take to undertake debt collection in Hungary?

The length of time it takes to carry out debt recovery is completely based on the circumstances of the debt. For example, if the debt is owed by an absconded debtor, then this can take longer to recover.

How much will the Hungarian debt recovery process cost?

The cost of the debt recovery process in Hungary will change with each individual case. Just like with the time it takes, the cost is dictated by the circumstances of the debt in question.

Is there less chance for success considering the distance of my debtor?

The distance of the debtor does not affect the success rate of the debt recovery. Professional debt collection agencies such as ourselves can successfully recover debts across the globe.

Will my relationship with the debtor be jeopardised during recovery?

At Federal Management, we ensure to no jeopardise any existing business relationships with overseas clients. This is achieved by providing a professional service that aims to give peace of mind.