Debt Collection in Japan
Debt Collection in Japan
The economy of Japan is the third-largest in the world with major exports in automobiles and electronics. Throughout history, the United Kingdom and Japan have had a positive trade relationship.
In 2020, it was recorded that the total number of UK exports to Japan was around $7.14 Billion.
Vehicles, electronics and machinery contributed a large amount of money to this statistic.
Despite the positivity of United Kingdom businesses working with those in Japan, this has resulted in more and more financial issues that occur.
One of the most common issues that business owners face is the non-payment of goods provided to Japanese clients.
There are many reasons why payments may be withheld, however, some clients may simply refuse to pay. A common reason for this is that they assume they are untouchable due to the distance.
Are you a business owner that has provided a service to a Japanese client that has not paid? If this is the case, you need to make sure you take action quickly to recover what is owed.
Federal Management has expertise in recovering debts across the globe and specifically in Japan.
Many perceive the act of international debt recovery to be a hard task to undertake. In reality, it is a case of having the correct training and knowledge to be successful.
The stress that is owed money can sometimes lead people to abandon the debt, which should never be commonplace.
Our experts have put together this information to take the stress out of needing debt collection in Japan.
Methods of Debt Collection in Japan
It is no secret that recovering debts from overseas can take longer than collecting one from the UK.
This is due to the various factors that need to be considered such as language barriers, time differences and laws etc.
Business owners may try to carry out debt recovery by themselves, however, this is not recommended.
Independently collecting a debt, especially with no expertise, can waste valuable time and resources. These resources should be used on tasks that benefit the company such as building cash flow.
An alternative method that is known to be effective is to use legal action for debt collection in Japan.
When collecting a debt from the UK, it is uncommon to have to worry about different laws and regulations. In Japan, however, different laws dictate the recovery of money that is owed.
For example, the amount of time a debt can be recovered in the UK is 6 years, whereas in Japan this is 10 years.
Law firms will have specific knowledge on how these laws differ in every country, however, this will come at a cost.
Solicitors are known to work on a price-drip fee basis and sometimes charge up to £200 an hour for their services.
If debt recovery is taken through international court systems, this can also add on a large amount of time.
For those that want an effective and affordable debt collection in Japan service, there is a solution.
Using a debt collection agency is by far the most efficient way of recovering money that is owed overseas.
Federal Management is one such agency, and have been the UK’s leading commercial debt collection agency since 2004.
Using A Debt Collection Agency in Japan
Federal Management is the UK’s leading expert when it comes to recovering debts for clients in Japan.
Using debt collections services is by far the most beneficial way to collect a debt that is owed to you or your company.
This has quickly become the most convenient method for businesses due to its effectiveness and affordability.
The success of our service is achieved by having a global network of debt collection experts on hand. The result of this is that we can recover debts from virtually anywhere in the world.
Our results are not affected by the cost of our service and we provide clients with an average recovery rate of up to 90% on undisputed debts.
If your business is owed money by a client in Japan, do not hesitate to get in contact with the experts today.
Debt Collection in Japan – Frequently Asked Questions
Can Debt Be Collected Internationally?
Yes, money that is owed by a debtor overseas can still be collected. Professional experts, such as Federal Management, have expertise in recovering debts across the globe.
How Long Can Debts Be Collected?
Each country has its own laws and regulations related to the amount of time you can collect a debt. For example, in the UK, a debt becomes statute-barred after 6 years, whilst in Japan, this is 10 years.
Is Debt Collection Illegal?
The act of debt collection is not illegal and those that are owed money should rightfully be allowed to recover what is owed. However, there are laws that dictate how you must professionally go about recovering a debt.
What Happens If You Let Debt Go To Collections?
If you have a client in Japan that is refusing to pay, you may want to pass this on to a debt collection agency. A debt recovery agency will be able to recover the money owed using only professional and compliant tactics.
This is by far the most effective and hassle-free way of recovering any debts you may have.