If you’re owed money by an overseas business, one of the first questions you’ll likely ask is whether you can pursue the debt without paying upfront.
The short answer is yes, but with important caveats that are worth understanding before you instruct an agency.
Table of Contents
Not All Agencies Offer No Win No Fee for International Debts
No win no fee (or, as we call it, “no collection, no commission”) is a well-established model in UK debt recovery. Many businesses have come to expect it as standard.
But when it comes to international B2B debts, the picture is more complicated.
International debt recovery is significantly more complex than chasing a domestic debt. Different legal systems, languages, local enforcement procedures, and the practicalities of working with overseas agents all add layers of difficulty and cost that agencies need to account for.
As a result, a number of agencies that offer no win no fee for UK debts either exclude international cases entirely, or apply different terms. It’s always worth checking the small print.
Safe Collections Offers International Debt Collection On A No Win No Fee Basis
Safe Collections offers no collection, no commission arrangements for international B2B debts.
We’ve been working with our US agent since 1986, and we operate a network of trusted partners across a wide range of jurisdictions to support overseas recovery cases.
That said, there’s an important distinction to be aware of:
- Our no win no fee terms relate specifically to our own fees
- International debt recovery can involve costs outside what we charge, like local tracing fees, court filing costs, or other jurisdiction-specific expenses. These may be incurred in the process of progressing your case, regardless of the outcome however these costs must always be agreed by you, in advance of us incurring them in your claim.
This isn’t unusual, and it doesn’t mean you’ll face large or unexpected bills if a case is unsuccessful. But it does mean you should be clear on exactly what’s covered before you sign anything, and we will make sure you are always advised of your options.
If you choose to go with another agency, we’d always recommend that you ask them to explain precisely which fees fall under their no win no fee terms and which don’t. Get those terms in writing.
What Affects the Likelihood of Success in International Debt Collection?
Even though you don’t pay a fee if you aren’t successful, the main goal is to recover the debt.
Several factors influence how recoverable an international debt is likely to be:
- The debtor’s location. Some jurisdictions are considerably harder to pursue in than others. Recovery rates and timescales vary significantly across different countries.
- The size of the debt. This is a little counterintuitive, but smaller debts may not be economical to pursue internationally once local costs are factored in.
- The strength of your documentation. Having clear contracts, invoices, and evidence of delivery or service significantly improves your position.
- How long the debt has been outstanding. Older debts are generally harder to recover, and some jurisdictions have limitation periods that can affect your options.
What’s the True Cost of International Collection?
For unpaid invoices, there are fees to pay. But for an undisputed debt, those fees are paid from the costs you’re legally entitled to charge the debtor.
For your business, the collection has no cost because you pay nothing on top.
This isn’t straightforward, though, because any legal fees would be added in more complex cases. We strongly recommend that you get advice on your specific situation.
Talk to Us Before You Commit
If you’re considering instructing an agency for an international debt, it’s worth having a conversation with us first. There is no charge for this.
We can advise you on the likelihood of success in a given jurisdiction, explain exactly what our no win no fee terms cover, and help you decide whether pursuing the debt makes commercial sense.
You can also read our guide to chasing overdue invoices from international clients for more detail on the process and what to expect.
We’re happy to give you an honest and free assessment. If we think a case is unlikely to be worth pursuing, we will say that directly at the start.
