When your debtor is based overseas, getting paid can be a long and drawn-out process if you approach it the wrong way. In this post, we’ll reveal 4 proven strategies that can significantly improve your chances of successful international debt collection.
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1. Always Work With Local Collection Partners
You must choose a debt collection agency that uses local agents in your debtor’s own country.
Using a local agent is the single most effective way to improve your chances of collecting international debt.
If you try to chase a debt in another country by yourself, you’ll automatically be at a disadvantage. Your debtor knows you’re thousands of miles away. You’re not going to show up at their door or take them to their local court. And let’s face it: you don’t know the law as well as they do.
Local collection agents have local knowledge, understanding of the law, and the ability to communicate with the debtor more efficiently. That’s why we use local agents to collect international debts for our clients.
Local debt collection agents give you leverage in multiple areas:
- They speak the debtor’s language
- The agent understands the business culture in their region or country
- The agent operates in their timezone, meaning they can chase up more directly
Debtors can’t hide behind language barriers or claim confusion about foreign payment systems. They know a local agent understands exactly how their market works and what options are available for enforcement.
If your claim has to go to court, a local agent will know the process and continue to assist you through to enforcement.
At Safe Collections, we’ve built a network of trusted debt collection partners across Europe and internationally. When we receive an international claim, we immediately instruct a local agent while remaining in control of the process.
This approach consistently delivers results for our clients.
2. Act Quickly to Get What You’re Owed
Time is your enemy in any debt collection scenario, but it’s particularly critical when dealing with international debtors. Your chances of successful recovery drop significantly over time.
There are several reasons why avoiding and delaying just makes it less likely that you’ll be paid:
- The longer you wait, the more likely the debtor’s financial situation will worsen. A company that’s struggling to pay you today may be in administration or liquidation in three months’ time.
- People leave companies, email addresses change, and business relationships fade. This can make a simple claim turn into a drawn-out mission.
- Currency fluctuations can work against you. If you’re owed €50,000 and the euro weakens against the pound while you’re delaying action, you’re losing money even if you eventually collect the full amount. Similarly, if the debtor’s local currency is unstable, waiting can mean there’s simply less value to recover.
In our experience, the only reason to delay is when you believe there’s a genuine reason, or a valid emergency, that is preventing the debtor from paying you.
Unless you have cold, hard evidence, act quickly to recover the debt to increase your chances.
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3. Get Your Documentation Right
International debt collection can fail when you don’t have documentation to back up your claim.
Every email, every purchase order, every proof of delivery, every communication about payment delays: keep them on file. Print them out and keep them somewhere safe. When we handle your international debt collection case, we’ll ask you for copies.
Have your contract and payment terms to hand, even if your documentation is an email you’ve sent that they’ve replied to. If these terms were accepted in writing, you have a significantly better chance of recovery.
International debtors know you’re disadvantaged simply because you’re working with an unfamiliar legal system. Some will try to exploit that by disputing terms, claiming they never received goods, or insisting they’ve already paid. Contemporary documentation is your best defence.
4. Communicate Proactively With the Debtor and Debt Collection Agency
Once an international invoice goes overdue, many businesses make the mistake of naming and shaming their debtor on social media in a desperate attempt to get a response.
It’s better to tackle the issue in a way that makes your intentions clear.
- Start with a phone call, not an email. Many of our clients are afraid to do this, but this step is particularly important for international debt. Emails are easy to ignore. More importantly, a single call can provide valuable information about the root of the problem. Are they disputing something? Having cash flow problems? Simply ignoring you? The debtor’s response, or lack of one, will help you to move forward.
- Follow up with written communications that detail the invoice number, amount, original due date, and how many days overdue it is. Ask when payment will be made and get a specific date. Your email should summarize what was discussed on the phone, including any dates you were given.
- If the person doesn’t respond or fails to keep their payment promise, escalate to our international debt collectors in the debtor’s country. You’ve given the client a chance to resolve the issue, and that’s all you need to do. Don’t let them take advantage by delaying until collection is difficult.
Once you’ve established the debt is undisputed, you have a paper trail showing the debtor is avoiding payment, and continuing to chase directly is simply wasting your time. This is when a local collection agent changes the dynamic entirely. In our experience, a local agent often produces payment within days, even from debtors who’ve been ignoring our client for months.
Take the First Step to Get International Debts Paid
Safe Collections has been successfully collecting international debts since 1984. Our success rates are backed up by 5-star reviews on Trustpilot and Google.
We’re experts in dealing with international clients who are uncommunicative or evasive. And we know how to let the debtor know you’re serious and organized, not emotional and desperate, while maintaining professional relations. Get in touch today for a free claim review.
