Debt Collection From Europe

Debt Collection From Europe

If you are a business based in the United Kingdom, you may experience the late payment of invoices on a regular basis. This is something that is unfortunately common within an organisation’s credit-control team and has shown no signs of stopping over the years.

Using a Debt Collection Agency post Covid in the UK is a good decision, as many businesses have been hit hard by the pandemic and may not have the resources required to chase a debt alone.

A large amount of the work that is done in the business-to-business sector is done so internationally, with billions of pounds being spent every week on the importation and exportation of goods. This has in turn brought forward the need for Overseas Debt Collection experts when invoices go unpaid.

Throughout our long history, we have dealt with many clients that have been hesitant when it comes to the subject of debt collection from Europe. This is due to the belief that they are almost impossible to collect due to the distance and perceived complications – in reality, this is not the case.

Although it has been known for International Debts to take longer to collect than ones based in the United Kingdom, the notion that they are “uncollectable” is completely false.

Prolonging or even leaving the recovery of your overseas debt can cause difficulties to both your cash flow and the sustainability of your organisation.

Choosing the right method of collection is also extremely important to remember, and the only solution is to go through a professional International Debt Collection Agency.

If you are owed money by someone, why should you let them get away with this? The answer is, you shouldn’t!

Before instructing a professional agency to carry out a debt collection from Europe, it is important to know why it takes longer to collect debts overseas.

There are a few parameters that can hinder the process of performing a debt collection from Europe, such as:

• Language Barriers
• International Law
• Time Differences
• Country-specific Regulations

These can all alter the time it will take to collect your debt from overseas, which is worth noting as to avoid disappointment within the collection process.

A professional and pragmatic International Debt Collection agency will have experts that are specifically trained to combat the hindrances that are presented by overseas debts.

Debt Collection From Europe Laws – What You Should Know

As mentioned above, there are various unique laws and regulations that are present within each country, and will change from different places across the globe.

The rules that apply within these laws will come in many different forms, and may outline how the process of collection is carried out and how creditors and debtors should be treated.

Interestingly, in most European countries, a third-party organisation (such as a Debt Collector) must have permission to collect the international debt on behalf of the creditor.

Statute Barred Debts

Regardless of location across the globe, there is one regulation that is statutory, which is known as a “Statute Barred” Debt.

The term ‘Statute Barred’ refers to a debt that has been left for a long period of time and is now unrecoverable. In the UK, the time in which a debt can still be recovered is six years.

The Limitation Act 1980 outlines this, and the six-year period starts from the last known payment or acknowledgement of the debt. However, if ANY acknowledgement of the debt is made within the time frame by either party, this will reset the six-years.

Internationally, however, there are various parameters that will change depending on the country. For example, in places like California, debts have a recovery period of 4 years (if it is written) and 2 years (if it is verbal).

This is why we recommend to never prolong the recovery of your overseas debt, and if you leave it for too long you may end up never getting your money back.

Not only this, but valuable resources will be wasted along the way which could have been used to do value-based tasks such as growing your business.

Debt Collection From Europe – Using A Debt Collection Agency

At International Debt Collectors, our award-winning partners act in the most professional and expedient manner possible, whilst maximising the return of a debt and the minimisation of costs.

There are many benefits to using our partners to collect your overseas debt, including:

• Allow you to grow your organisation and maintain cashflow.
• It is their job to collect International Debts – they are the experts!
• Industry-high recovery rates and low commission rates.
• They ensure to keep customer relationships intact.

Our main partner for Commercial International Debt Collection From Europe is Federal Management.

For Private International Debt Collection From Europe, our recommended partner is Frontline Collections.

Both partners have a long and demonstrated history collecting debts across the globe and operate in a professional, pragmatic and pro-active way to ensure no stone is unturned in the process.

Our partners are based in various locations across the UK, with offices in key locations such as London, Birmingham, Manchester or Glasgow.

They have worked throughout a large number of sectors and have developed an impressive portfolio of client since 2004.

As well as this, other benefits to using both of our partners are:

• Over 15+ years of Industry Experience in Most Business Sectors.
• No Collection = No Collection Cost To Pay.
• Authorised By The Financial Conduct Authority (FCA)
• Highly Efficient, Effective and Professional Private Debt Collection Service
• Average 90% Recovery Rate on Undisputed Debts
• High Collection Rates and Low Commission Rates
•  “Gold Preferred Supplier” With The Independent Schools Association