International debt collection: Efficient debt collection abroad
Debt collection from abroad can be more complicated than domestic debt collection, as the laws and practices of different countries vary.
International debt collection requires special expertise and precision, which takes into account not only legislation, but also international agreements, special features and processes of each country, legal aid and possible challenges related to language barriers.
International debt collection phases
The international debt collection process can be roughly divided into two phases: initial debt collection and legal debt collection. In the initial phase, the collection agency tries to get the customer to pay the debt voluntarily. In the legal collection phase, the collection agency applies for a court decision to collect the debt.
Knowledge of the local customs and practices are needed
In international trade and the collection of receivables abroad, it is important to be aware of the local customs and practices in addition to the local legislation. You can get help for knowing the debt collection laws and requirements of different countries from the specialized professionals.
The goals of international debt collection are the same as in domestic debt collection: to minimize the risk of credit losses, to ensure that the company gets its receivables and the income flows to the cash on time, thus taking care of maintaining the competitiveness.
Collection process when the customer is abroad
It is possible to start the collection process from Finland, even if the customer is located abroad. Debt collection agencies can send a payment request to the customer and, if necessary, have telephone conversations. In international collection, the collection agency can also make use of the international network and cooperation with local operators abroad to collect the debt.
Challenges in the international debt collection
More and more Finnish companies operate or expand their business abroad, which makes international debt collection an essential part of their everyday operations. However, often the companies themselves do not have sufficient knowledge of the legislation, practices, and debt collection processes of other countries. To minimize the credit loss risks, it is appropriate to utilize the extensive international networks and expertise available through the debt collection agencies, which facilitate debt collection abroad and make it cost-effective and transparent.
Customized solutions for multinational companies
Multinational companies can be offered customized and centralized receivables management solutions. Automation can make both debt collection and reporting more efficient, and regional units get support from local contacts. Goal setting and reporting are managed centrally, which promotes the companies’ business goals.
Let Kredinor help in all phases of debt collection
We at Kredinor can provide you the international debt collection service. We are part of the Nordic Kredinor group. In addition to our Nordic network and strong expertise, our international partner network and cooperation with offices abroad can be of your help to collect the debt.
We always recommend reacting quickly when international payments are delayed, as the response times are often longer than in domestic collection. From us, you get a quick first-stage response with the help of our international Pre-collection service, after which, if necessary, we can immediately transfer the assignment to the target country for local measures.
We are your partner in all matters related to open receivables, up to legal action if necessary.