Recovering Debt from Overseas Customers
Recovering Debt from overseas customers can represent a headache for any business, large or small. In the case of the smaller enterprise, a cash flow crisis can quickly turn into something far more serious so regardless of the location of your customer, it is imperative that it is tackled quickly and efficiently.
While there is a glut of information available to those looking to recover Business debts in the UK, there is precious little to be found regarding debtors that reside overseas. The typical reaction is to assume that to pursue the debt, would be expensive and ultimately prove unsuccessful.
But in reality, the truth can be and often is far more encouraging.
In many instances, as a creditor, you are entitled (according to EU Law) to compensation if you have provided a product or service and you haven’t been remunerated within a reasonable time.
EU directive 2000/35/EC is the european version of the Late Payment of Commercial Debts Act, which protects companies against non-paying clients in the UK. This legislation not only ensures a business or person is paid for services they provide, but also allow interest and penalties to be charged to pay for the action companies are forced into when a consumer simply will not pay.
Outside the EU
It may be a surprise to some, but a top professional debt collection Agency like Federal Management is even able to pursue debts from your clients residing outside of the EU. Maybe worth nothing that you are not permitted to charge interest or additional fees resulting from your attempts to recover your money.
However, it is still worth chasing the debt, even if the client is outside of the EU. A small number of UK collection agencies have excellent working relationships with their overseas counterparts. This allows for them arrange collection from the overseas debtor and liaise with you throughout the entire process.
Chasing late payment from someone abroad is, for sure, more difficult than doing so if your client lives inside the UK. You shouldn’t lose heart though, as there is a system in place for you to recover your owed funds, should you wish to pursue them.
Remember, you will not get anything if you don’t try and there is help available. An expert global debt collection service will have cross jurisdiction contacts with expert knowledge of the local terrain. The objective is always to recover the debt back as quickly as possible but what is possible will vary greatly dependant on the Debt Collection Agency itself and its resources.
At Federal Management’ we offer expert advice and a free appraisal of your situation from one of our Expert Debt Collection Professionals. Within just a few minutes, we will review the situation and advise you on the potential of a successful recovery. So if you have problems with overseas customers who do not pay, speak to the experts today.
First choice for UK Businesses, and should be First choice for you! Federal Management, leading the way in International Debt Collection.