Collecting a debt from somebody abroad
Collecting A Debt From Somebody Abroad
A ‘Cross-border’ debt is deemed as money owed by a person or business outside the creditors country of operation. Transnational debt, as it is also known, requires a specific set of knowledge and expertise that takes in all of the foreign financial regulations in existence.
The common misconception is that if a debtor is located abroad, then you have little or no chance of recovering the money. However, this is not the case. It might be a bit more challenging in terms of logistics, but there are mechanisms in place across the world that allows creditors to pursue their debtors, be they individuals or businesses.
Whether it is a personal loan owed to you or monies owed for a service your business has supplied, there is a recourse to help you recover money that is quite rightly yours in a cost-effective and timely manner. It could be a friend that owes you money or a relative. If you are a Business then it will most likely be a customer that owes you.
International Collection Agents
Reputable collection agencies in the UK are known to have good working relationships with foreign agencies, which means that they are able to help those businesses chasing debtors overseas in a professional and ethical way.
At Frontline Collections, we have a global network of trusted Agents to call upon if our own internal resources do not obtain the desired result.
On your own, you face a daunting task if you try and pursue the debtor, as you most likely don’t have an in-depth knowledge of the local jurisdiction and regulations regarding Debt Collection. A professional debt collection agency is able to assist and have the expertise required to remain compliant with each country’s laws.
Emigration is not an excuse
People move abroad for many different reasons, from wanting to try out a different culture to starting a new job in a new country. However, there are some that think that leaving the country wipes out any debts owed to businesses and people in the country they are leaving behind.
A point which re-emphasises the fact that much of the general public think this is a way out of settling your debts. The truth of the matter is that more often than not, there can be no escaping the payment of your debts
Action is necessary
A Small business survives on the money it receives for the services it provides, an obvious statement you might say, but the point is that you must take appropriate action in every instance where a client refuses to pay for the good of you and your livelihood. Collecting a Debt from abroad should be as much a priority as collecting a debt from somebody in the UK.
Same again for Personal Debts. If you have lent somebody money in good faith, the very least they can do is pay it back. When they do not happen, it is refreshing to know there are people who can help you.
The ‘It’s not worth it’ stance does not apply, as there is professional assistance available to retrieve monies owed in the form of a Professional International Debt Collection Agency. Obviously, if it is a small amount then it may not be worth it but common sense prevails in this instance.
If your aim is to try collecting a debt from somebody living abroad, you most certainly are not on your own – Millions of pounds is recovered every year from UK residents who have emigrated abroad without paying monies they are owed.
Speak to our New Business Team today for a frank assessment of your situation and let us see if we can help.