Why Use International Collection Services?

 

When an international customer fails to pay what they owe, this presents a challenge as it is far more difficult to act when your business customer is not in the United Kingdom. Collecting debts outside the UK carries a certain apprehension for some, but that need not be.

Using an international debt collection service can be a mandatory step to getting paid, as they can provide the legal knowledge and resources needed to navigate complex cross-border regulations and recover what you’re owed efficiently.

When your customer is in a different jurisdiction this can be a major obstacle, so knowledge of the relevant laws within that region is essential.

In this article, we explain how international debt collectors can help recover money owed by someone in another country.

 

 

Overcoming Overseas Debt Collection Challenges

Boundaries and borders no longer exist, and businesses now have the potential to operate on a global scale. Whilst this is a great step for businesses, it also provides a greater opportunity for debt to occur. As such, there has never been a greater need for international debt collectors.

Local knowledge is super valuable when it comes to collecting debts overseas. Over the past 15 years, we have developed a network of the very best international debt collection agents. These agents can be called upon to act when our reasonable efforts at dialogue have been met with resistance. Having a working knowledge of each nation’s debt recovery laws is crucial, and it is this expertise that makes them an effective solution.

A physical and local presence sometimes ensures the debtor knows the matter will not simply disappear. We can also use our global network of trusted agents when needed if a sterner approach is necessary. This localised intelligence and information is the difference between getting paid and not getting anything.

 

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Core Benefits of Using International B2B Debt Collectors

Using specialist international debt collectors is the best option when dealing with non-paying clients who have moved abroad.

The recovery of debt from an overseas client can be successful if you instruct international debt collectors. Federal Management is the UK’s leading specialist international debt collector, with specialist knowledge in every industry sector.

As well as being the number one choice for business debt collection in the UK, we are also the leading specialist for collecting international debts.

Take a look at the core benefits of using our international debt recovery company.

Free Pre-Action Consultation

Federal Management provides a free pre-action assessment of your debt. To save you time and money, we will only take action if the debt is deemed valid and recoverable. This allows you to consider your options before committing to any course of action.

Global Network of Trusted Partners

All cases are initially dealt with by our head office. The file is prepared by an overseas debt collection service specialist. They perform all tasks and due diligence relating to the file, and maximum effort goes into resolving the matter as quickly as possible.

Where more proactive action is required, we have a global network of trusted debt collection agents who are all experts with the local laws on debt recovery in their own countries. As a result, we can collect debt from almost anywhere in the world when instructed to do so, legally and efficiently.

Payment Notifications for Regular Updates on Your Case

To provide peace of mind, all clients are kept updated throughout the case. We understand that when it comes to money matters, clients want to be kept in the loop at all times. Regular reports keep clients informed of progress right up to securing payment.

Our Global Accounts Team manages overseas payments from whichever country they originate. These payments are managed by being forwarded to your bank account as quickly as possible. This provides clients with seamless transactions and the assurance that their funds are recovered and transferred without unnecessary delays.

Cost-Effective Collection Solution

When people think of an international debt collection service, they usually think of the great expense. On the contrary, that’s far from the case. We minimise the costs to our clients by delivering a low fixed-fee service. If our initial investigations prove to be fruitful, then we can act. If initial checks show that your international customer is insolvent, we will tell you.

Less Than 1% of Cases Require Legal Action

Less than 1% of the international debt recovery cases we deal with require litigation. It is not in our or our client’s interests to protract matters, as legal action can become extremely costly and we don’t want to put our clients further out of pocket. Our aim is to keep costs to a minimum and recover what is owed expediently.

Extensive International Expertise

Our international debt collectors have specialist expertise in recovering debt from around the world. Language barriers and time zone differences are no obstacle for our global network of trusted partners, so you can be sure you’re in capable hands. It is easier than ever before to do business, with millions of agreements and transactions happening daily.

With the increase in international trade, money that someone in another country owes is becoming more and more of an issue.

You can protect yourself from situations like this by creating contracts and payment terms and employing a robust international credit control process.

 

 

How to Recover Your Unpaid International Debts – Act Now!

If an overseas debtor owes you money, it’s crucial that you follow the correct procedures and act fast. Take a look at how you can recover your unpaid international debts quickly.

Contact Your Customer

If the invoice payment deadline has been missed, you need to reach out to your customer. Let them know payment is now overdue and it needs resolving. If your requests go ignored, then advise you will instruct a third party. Sometimes, this can trigger a chain reaction, and they will pay without further delay.

Unfortunately, some debtors think because you are located in the UK, there is nothing you can do.

Get Expert Advice

So, your customer has failed to pay the outstanding invoice. What are your options now? Well, start by speaking to a specialist debt collector. They can perform basic checks to ensure that all is not lost. Checks as to the legitimacy of your debt are the first port of call. Then checks and investigation into the current standing of the customer in question.

This assessment will enable the specialist to verify that there is the prospect of the debt being paid. It will give you a better perspective and understanding of the situation.

Proceed With Action

If the customer is still actively trading and there is merit in the debt claim, action can begin. Copies of documentation pertaining to the relevant debt would be required. This will enable the debt recovery specialist dealing with your claim to start. A notice of instruction is usually issued to the debtor company straightaway to let them know. This will make them aware that the matter has now increased in severity.

Procrastination will not help your business invoice get paid, so speak to an expert now. We can assess the situation in full and advise on the best solutions. The debts we have collected have ranged from EU-based debts through to more remote locations such as in Africa.

Our specialist international debt recovery team is here to help you and your business get paid.

Laws & Procedures Surrounding International Collection

The next few sections outline some of the laws and procedures various nations have put in place surrounding debt recovery. Take a look at some of these below:

European Order for Payment

According to the European Parliamentary Research Service, to supplement the existing order for payment measures, the EU legislature created a European Order for Payment (‘EOP’) procedure.

The procedure is available for cross-border claims for money for those arising from a contract. It is based on standard forms, and the claimant does not need to prove the case before an order is issued.

Once the defendant receives an EOP, they may oppose it. This then makes the EOP unenforceable and the case then moves onto standard civil proceedings. This is to combat the costs and time of cross-border debt collection. This is where the expertise of a debt recovery agency becomes invaluable. We have extensive experience in managing EOPs, ensuring that every step is handled efficiently to avoid unnecessary delays and costs associated with cross-border debt collection.

Dealing With Foreign Courts

In some cases, international debt collectors may use court action to enforce a debt. If someone in another country owes you money, you might be unsure of how this works.

If you are unsure of your nation’s ability and speed to recover your money from a debtor abroad, a creditor does have the right to appeal to a foreign court.

By choosing a foreign court, you could avoid the risk of exemptions on the debtor’s part whilst the case is in process.

Companies like Federal Management will simplify this process by acting on your behalf and ensuring that every step is handled efficiently and professionally. Navigating complex international laws and engaging with local agents will maximise your chances of successful debt recovery.

What is International Arbitration?

The International Arbitration Attorney Network defines international arbitration as:

“one of the most effective ways to resolve a conflict, offering a final and binding solution when parties are unable to agree upon a settlement and without taking a matter into court.

This technique involves one or more arbitrators reviewing the dispute and making a final and binding decision.

When arbitration awards are rendered in international disputes, they are enforceable throughout the 149 States that are Parties to the New York Convention.”

Compared to domestic court proceedings, international arbitration has many benefits, such as:

Speedy Resolution

The whole process can be a great deal faster than traditional court procedures since there is no appeal. This is especially true if the parties agree to speed up arbitration proceedings.

Quick & Cost-Effective Solution

Traditional court cases can last years, especially if there are appeals.

This results in an increase in costs over time. With international debt collectors, the process is quick and mitigates costly court proceedings, allowing businesses to focus on running their business.

Privacy & Discretion

The main advantage is that there are no public hearings with arbitrations. This means that the case is confidential and will take place in private rooms. Using an accredited international debt collector ensures that relationships between clients and businesses are maintained, and discretion and professionalism are the core of these services.

Simple Procedure

Traditional court procedures can be very time-consuming and confusing when they are motion-based.

In arbitration cases, the practical rules tend to be far simpler and more flexible, and the parties may customise them.

 

 

FAQs About Using An International Debt Recovery Service

Take a look at some of our most commonly asked questions below to gain valuable insights and answers regarding our services and how we can assist you.

Do You Only Deal With B2B Debt Collection?

We are the UK’s leading business debt collection specialists but can also help with personal debt recovery.

What Is Your Recovery Rate?

We have a debt collection rate as high as 90% on undisputed business debts.

What Are Your Commission Rates?

Our commission rates start from as little as 6% upwards, depending on the value, volume and complexity of the debts.

Are You A Professional Company?

Yes, we are a multi-award-winning FCA-regulated company that has operated throughout the UK since 2004. We hold ISO:1900 accreditation, ensuring the highest standards of service quality. We have also been recognised with the Investors in People award, reflecting our commitment to excellence in our operations and client relationships.

Do You Have A Minimum Debt Value You Will Act-On?

It depends on the nature of the debt. Our minimum debt value is normally £500+ but we can usually help or give advice for smaller amounts.

What Countries Are Covered By Your International Debt Collection Service?

We provide debt collection services across the globe, so you can rest assured that no matter where your debtor is located, we will be able to pursue them and recover what rightfully belongs to you. From Europe to Asia, Africa to North America, our team of experts has the experience and resources needed to successfully resolve any debt collection problem.

Our international debt collection services ensure you get what’s owed — no matter where your customers are. Contact us today and let us recover your outstanding global payments.

Posted on May 11, 2020