How To collect a debt From Spain
Experts Explain How To collect A Debt From Spain
Are you a business owner that has non-paying clients in Spain? Have you provided goods or services to a Spanish client who has withheld payment? If so, you must act to recover your money as soon as possible. A professional debt collection agency will provide the most cost-effective and beneficial solution.
Spain and the United Kingdom have a long history of economic cooperation. Trade between the two countries has always been thriving. In 2020, the UK’s exports to Spain were totalled to be $11.14 billion.
The potential for debt to occur is always high, and when trade is prospering there will be a higher likelihood of clients not paying. An expert Spanish debt collection agency can deliver on unpaid invoices or a debt owed from an individual.
Federal Management has been recovering debts from Spain since our opening. During that time, we have recovered millions of pounds worth of debt owed to UK based companies. We asked our debt collection experts to provide more information on debt collection in Spain, as well as our international debt collection process. To collect a debt from Spain can be challenging so using an expert service will help hugely.
Collecting a Debt in Spain
Recovering debt from a non-paying client in another country has more complications than a local recovery. Knowledge of the local laws and customs for debt collection in Spain is required for a successful collection.
In Spain, there are several key differences in how debt collection is governed when compared to the UK.
For example, in the UK there is a limitation period of six years on the enforcement of debt. This date is taken from the last time the debt was acknowledged by the debtor, which may be different to the due date on the invoice. In Spain, this period is five years for commercial debt. Unlike the UK, this time frame does not change if the debtor has acknowledged the debt, and instead is taken from the invoice due date.
As well as this, there are also EU laws and regulations that may need to be taken into account.
In addition to legal factors like this, there are also language and cultural considerations that have to be accounted for.
Whilst many businesses hope to recover a debt from Spain alone, it may be too complex to handle. A professional solution is always preferable, as it will save on wasted time and money, as well as provide the swiftest recovery time possible.
A good debt collection agency will already possess the knowledge and expertise required for debt collection in Spain.
Options for Debt Collection in Spain
If you are owed a debt in Spain, you must act as soon as possible. Choosing a professional solution is the most beneficial way of recovering your money. However, there are several options to choose from, and understanding the benefits of each can be important.
It is common for companies to take legal action against a debtor. They often hire the services of a law firm to move a case through the Spanish or UK court systems. This can be effective but often takes a long time to process. As well as this, law firms are usually a very expensive option, with some charging costly retention fees as well as high hourly rates.
Unfortunately, this does mean that many businesses will run the risk of writing off the debt if the cost of collection overtakes its value. The high cost also means that many smaller businesses might not be able to use this option.
The use of a debt collection agency has become more common in recent years. Recovery agencies provide an effective debt collection process at a low cost. This not only prompts the debtor to pay but also makes this a viable option for all companies.
Instructing a Debt Collection Agency
A debt collection agency is the most beneficial way to recover any amount owed from Spain. When searching for one, you should always choose an agency with a proven history of international debt collection.
Federal Management, for instance, is often regarded as the UK’s leader in international debt recovery. Our global network of trusted collections partners are based in strategic locations in most of the world’s major cities. As a result, this helps us to collect a debt from virtually anywhere in the world.
If you need help with debt collection in Spain, we can help. Our low-cost service provides the highest levels of professionalism. Federal Management’s average recovery rate is 90% on undisputed business debt.
If you are owed money from a client in Spain, speak with our friendly debt collection experts now. We will conduct a complimentary pre-action assessment of your debt.
Debt Collection in Spain – Frequently Asked Questions
How long before a debt is written off in Spain?
In Spain, there are several different limitation periods for the enforcement of debt. For commercial debt, this time period is five years. If you have not been paid by a client in Spain, you should always act as soon as possible.
How do I collect debt in Spain?
There are several ways a business can recover a debt from a client in Spain. Some examples could be to attempt an internal debt collection process or to go to the expense of hiring a solicitor. The most beneficial way to collect a debt in Spain is to instruct a professional debt collection agency.
Can debt be collected internationally?
A specialist international debt collection agency like Federal Management can recover debt from virtually anywhere in the world. If you have a debt owed by a client in Spain, speak to one of our friendly debt collection experts today.
Can a UK debt be collected in Spain?
Yes, if a UK business is owed money from a client in Spain, a debt collector can investigate the case. Federal Management will provide a free pre-action assessment of your debt. Contact us today for more information.
How effective is debt collection in Spain?
Each case is unique, and success rates will depend on the solution you choose. Federal Management has an average success rate of 90% on all undisputed business debts. Our service is widely regarded as the most professional and effective commercial debt recovery solution available.
If you are seeking to collect a debt from Span, we provide a free appraisal of your Spanish debt collection needs.