Debt Collection in Malaysia

Debt Collection in Malaysia

Do you require debt collection in Malaysia? Are you a business owner that has not been paid by a Malaysian client? If so, you need to take appropriate action to recover what is owed.

When goods or services have not been paid for, this can create a stressful situation for the business it is owed to. Unpaid invoices, missed payment dates and payment disputes are all examples of how money can be owed.

It is a sad reality that sometimes these types of situations cannot easily be avoided and debtors will stop at nothing to withhold payment.

There are ways to prevent the need for debt recovery services including checking credit reports, payment contracts, terms and conditions etc.

Most businesses will have a credit control team that is dedicated to chasing up late payments from clients.

However, there are some that do not have the resources to do this and may feel like they do not know where to turn to.

It should give you peace of mind to know that there are options available for debt collection.

Federal Management is one such option that has recovered millions of pounds worth of overseas debts since 2004.

We asked our specialists to put together some information to help business owners facing this situation.

Debt Collection in Malaysia – The Economy

The economy of Malaysia is the fourth largest in Southeast Asia, with electronics, construction and automotive being the main contributors. Kuala Lumpur alone is one of the leading cities in the world for tourism and shopping.

As a result, it has formed positive trade relationships with many countries across the globe.

The United Kingdom is one of these, annually exporting goods such as machinery, vehicles and electronics.

It was recorded that the total amount of UK exports to Malaysia in 2020 was $1.72 billion.

Whilst this is a positive figure, the high amount of business transactions has been a catalyst for the number of debts.

This is no surprise, however, as there is a higher chance for financial issues to occur if more goods and services are being provided.

Action should be taken quickly to collect unpaid accounts, which will ensure that cash flow is not affected for a long period of time.

The Debt Collection in Malaysia Process

Collecting debts may seem like a challenging task, especially if the debtor is based overseas.

There are a lot of factors to consider when recovering an amount owed from a Malaysian client.

Time differences, cultural changes, language barriers all impact the amount of time it takes to recover the debt.

An understanding of the country-specific laws and regulations is also required, as the length of time that debt can be recovered will change in each country. In Malaysia, for example, the statute of limitations on debts is six years.

Realistically, it is a case of having the right skill set to get the most out of debt collection in Malaysia.

The average business, understandably, will not have the knowledge required to do this in the best way.

Instead of trying to combat this alone, it is best to use a professional debt collection company.

How To Undertake Debt Collection in Malaysia

As mentioned above, there is a large number of ways that debt collection in Malaysia can be carried out.

Business owners may try and recover the debt independently due to a lack of knowledge of the options.

If they are inexperienced in international debt collection, this can take a long time to produce any form of result. Resources will be wasted which should be used on beneficial tasks such as growing the business.

Instructing a professional will allow you to focus on the business with the knowledge that debt

Solicitors have been a popular choice for debt collections services, with the threat of legal action alone being enough to make the debtor pay in some cases.

Whilst this is a positive method for any business to use, the main disadvantage is that it can be expensive. Solicitors fees, on top of any court costs, can end up costing more than the debt is worth in the first place.

Spending a lot of money to recover what is already owed is not in the best interest of the business.

The best way to undertake debt collection in Malaysia is by using a professional debt recovery agency.

Using A Debt Collection Agency in Malaysia

A debt collection agency is the most beneficial solution for UK businesses with unpaid fees.

Federal Management has provided debt recovery services to businesses in all industry sectors to recover money from Malaysia.

We are renowned for being the UK’s leading commercial debt collection agency for overseas debts.

Our debt collection specialists have the expertise and knowledge required to successfully recover money from Malaysian debtors.

As a result, we are able to provide our clients with an average industry-leading recovery rate of up to 90%. The high success rates are complemented by an extremely low debt collection service cost.

Our global network for debt collectors allows us to provide an expert service practically anywhere in the world.

A regular thought for those that use debt collection agencies is whether it will damage the relationship with the debtor.

Our professionalism means that the service we provide will not jeopardise any existing business relationships.

Unpaid fees can be stressful for business owners at the best of times, which is why we aim to deliver the utmost peace of mind.

If your business needs debt collection in Malaysia, do not hesitate to speak to one of our debt recovery experts today.

Debt Collection in Malaysia – Frequently Asked Questions

I have a Malaysian client withholding money for goods, what can I do?

If your client has not paid for services that you have provided, you need to initiate a debt collection process. The most beneficial way to do this is by using a debt collection agency.

What is the debt collection process in Malaysia?

A professional will look into the details of the debt and give you an insight into the chances of recovery. They will then use proactive tactics to recover the debt in a professional way.

How much does debt collection cost in Malaysia?

The circumstances of the debt in question will dictate how much it is, meaning each debt recovery cost is different. Our experts can provide you with a cost after a quick conversation.

Is debt collection successful if the debt is overseas?

The success rate is not dictated by the distance of the debtor. At Federal Management, we provide our clients with an average recovery rate of up to 90%. Our service maximises success whilst minimising cost.

Can private debts be recovered as well as business debts?

All types of debt can be recovered by a professional debt collector. We specialise in the recovery of commercial debts, whilst other agencies are experts in recovering personal debts.