Collecting a Debt From Switzerland
Collecting a Debt From Switzerland
Are you a business owner that has outstanding unpaid fees from someone in Switzerland? If this is the case, you need to take action immediately to recover the money that is owed.
Due to the amount of business that occurs between Switzerland and the UK, it is no surprise as to why debts are so common.
In 2020, the recorded number of UK’s exports to Switzerland were totalled to be $18.35 Billion.
This is an impressive number and highlights the trade relationship between the two countries.
It is a sad reality that the higher the exports, the higher chance that a client will not pay.
However, you are not alone in this as thousands of businesses are left unpaid every year.
There are a large number of industry sectors in Switzerland and each will have a different percentage of businesses that pay on time.
For example, businesses that work within the financial industry are known to be among the fastest payers.
Regardless of this, if invoice payment dates are missed by a client in Switzerland then this needs to be recovered.
Knowing how to perform the collection procedure is important and needs to be done so in a timely manner.
Contrary to popular belief, there are many different ways to undertake debt collection in Switzerland.
International debtors believe they can get away with not paying due to the distance, however, this is not the case.
An expert debt collection solution can recover debts across the globe, regardless of the distance.
Federal Management is one such solution and we have recovered millions of pounds worth of debts since 2004.
Our experts have put together this information to help ease any worries in regards to debt collection in Switzerland.
Debt Collection Process in Switzerland
When a business is owed money by a client, this can affect multiple aspects of the company including cash flow and longevity etc.
There is a direct link between debt collection and bankruptcy, with the latter being the worst scenario.
Being owed money in the UK is already a stressful situation and when this is owed from overseas it can make things harder.
It has been recorded that around 30% of all business invoices in Switzerland go unpaid or payment dates are missed.
There is a perception that money that is owed by an overseas customer is more difficult to collect.
In reality, it is a case of having the right expertise and training required to successfully recover this.
Our experts have a deep understanding of how best to recover money owed in Switzerland.
Whilst you can carry out debt collection services independently, this is not recommended.
There are many factors to consider when recovering overseas debts including language barriers, laws and regulations, time differences and different cultures.
Learning how to combat these factors can take up a lot of time and resources which should be used to grow the business.
Alternatively, business owners may obtain the services of a Swiss law firm to help with the various legal obstructions.
Law firms or debt collection solicitors can be expensive, especially if the case takes a long time due to international court systems.
Just like in the United Kingdom, Switzerland has its own laws and regulations related to the recovery of debts.
For example, the statute of limitations is different between the two and can affect the length of time you have to recover Swiss debts.
In the United Kingdom, this is 6 years, whereas in Switzerland the length of time is 10 years.
Federal act on debts and the court system can make amendments to this time period under certain circumstances.
In order to properly take into account the various international factors, a debt collection agency is the best option.
This will provide your business with the most efficient way of getting unpaid fees returned.
There are thousands of debt collection agencies to choose from but it is important to choose one with a history of success.
This is where Federal Management can provide you with the most effective commercial debt collection in Switzerland solution.
Federal Management Debt Collection in Switzerland Solution
Using a debt collection agency to recover withheld money has quickly become the most popular method for debts in Switzerland.
We have specific experience in successfully recovering debts from clients that are based in Switzerland.
This has been achieved by having a global network of debt collection agents, meaning we can recover debts virtually anywhere in the world.
The service we provide has been widely regarded as the UK’s leading debt recovery solution.
There are many benefits to choosing our award-winning service, including:
- Affordable service with commission rates from as low as 8%.
- A local, national and international network of trusted debt collection agents.
- An average debt recovery rate of 90% on all undisputed business debts.
- Sophisticated tracing service to track down absconded debtors
If you are a business owner that has a client withholding payment, you need to speak to the professionals.
Speak to our friendly experts today to start your debt collection in Switzerland.
Debt Collection in Switzerland – Frequently Asked Questions
Can debts be recovered from an overseas debtor?
An international debt collection expert, such as Federal Management, can recover debts from virtually anywhere across the globe. This is achieved by having a global network of debt collectors with country-specific expertise.
What is the debt recovery process in Switzerland?
Debt can be recovered in Switzerland in a variety of ways, with some being more effective than others. Some examples include recovering this independently or hiring a law firm to recover this.
The most beneficial way to recover an overseas debt is by using a debt collection agency.
How much time do you have to recover a debt in Switzerland?
The limitation period for the enforcement of debt in the UK is different to that in Switzerland. For example, the time period in Switzerland is 10 years. Regardless of this, you should always act quickly when you are owed money from a client.
Can a debt from the UK be collected in Switzerland?
Yes, if a UK business is owed money from a client in Switzerland, 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.
What is the effectiveness of debt collection in Switzerland?
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.