Debt Collection in Portugal
Debt Collection in Portugal
Are you the owner of a business that is owed money from a non-paying client in Portugal? If so, Federal Management can act to recover your money swiftly and effectively. We provide a professional and effective European debt collection service that has an average debt recovery rate of 90% on undisputed debt.
If you have provided goods or services to any client, it is only fair that you get the money that you are owed. It is common for many UK businesses to find themselves in a position where they are struggling to get a client to pay the debt they are owed.
As well as this, many businesses deal on an international level, with clients spread out across the globe. In some cases, non-paying clients based overseas believe themselves to be immune from any debt enforcement action.
One country that the UK deals with most is Portugal. The two countries share a longstanding and prosperous trading relationship, with $1.92 billion worth of UK exports being sent to Portugal in 2020.
As with any other business arrangement, it is almost inevitable that issues with payment will eventually occur. Many UK businesses are faced with non-paying clients based in Portugal on a daily basis.
Unfortunately, many business owners are unsure of what to do when their own credit control methods do not succeed. This leads many of them to write off the debt in question. With this in mind, it is clear that there is a growing need for an effective professional solution for debt collection in Portugal.
Debt Collection in Portugal – Finding an Effective Solution
In the UK, most businesses will pay their invoices within 30 days, or in some cases up to 60. However, complications and misunderstandings can arise when dealing on an international scale. Most countries have their own, unique, ways of what is considered normal business practice. Despite payment terms being made clear, many clients may miss payment dates.
In the case of debt collection in Portugal, many UK business owners consider the payment process of Portuguese companies to be poor. It is often extremely difficult to get a client to pay on time, and this can lead to a lot of debt being accrued in a small space of time.
To resolve the situation, many businesses take the matter of debt recovery into their own hands. In-house credit control teams chase the debtor for payment. However, if the debtor has already received the goods that were provided, they have little incentive to pay – especially when they believe they cannot be made to pay.
Many of the debt collection methods that credit control teams have can be ineffective, and with this in mind, it is critical to find a more practical solution. In the UK today, it is widely recognised that the most beneficial, low-cost and effective solution is to instruct a professional debt recovery agency.
Debt Collection in Portugal – Instructing a Professional Debt Collection Agency
As well as providing a proven and effective debt collection process, an agency will only incur a small cost when compared to other expensive alternatives.
An expert’s input is needed, as the success of the case will always depend on knowledge of national debt recovery laws in Portugal. This local knowledge is crucial, as without it there is little chance of debt recovery.
Federal Management is known as the UK’s leader in international debt collection. Our experts have recovered millions of pounds worth of unpaid debt for thousands of UK based companies.
We have a global network of trusted debt collection partners based in strategic locations across the globe. This provides us with the leading knowledge of national and international debt collection laws available and enables us to collect debt from virtually anywhere in the world.
If you need help with debt collection in Portugal, speak with one of our friendly experts today.
Debt Collection in Portugal – Frequently Asked Questions
How long does it take to collect a debt from Portugal?
Depending on the individual case, the average time to recover a debt can vary. Some methods of debt recovery, such as legal action with a debt recovery solicitor, can take a long time to process. A debt collection agency usually provides a swift and professional resolution.
How long can a debt in Portugal be chased for?
In Portugal, the limitation period on debt recovery can range from 5 – 20 years, with some special cases that are treated as exceptions. As this time period can vary, it is better to speak to a professional debt collector in order to get a clear idea of what your options are.
How much does debt collection in Portugal cost?
Depending on the individual case, the cost can be different. Every case is unique, and the work required to recover owed money can vary. For an estimation on cost, speak to one of Federal Management’s debt collection experts today.
What steps can my business take to recover a debt in Portugal?
Individual businesses often employ internal credit control teams to chase clients for payments. As well as this, many add late payment interest charges to their invoices to give clients an incentive to pay on time. This can be a good measure, however, a determined debtor will go to almost any length to avoid paying what they owe. When a debtor is ignoring you, it is beneficial to contact a debt collection agency as soon as possible.
Can you recover a debt from Portugal?
Yes, Federal Management is known as the UK’s leading expert at recovering money from clients all over the world. Our global network of trusted debt recovery partners have the leading knowledge of international laws and customs regarding enforcing debt abroad.