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Collecting European Debt
Businesses in the UK and around the world face many challenges, but one difficulty that is universal is the challenge of debt. Most businesses will at some point have to wrestle with at least one unpaid debt, and the process of securing your money can be time-consuming, expensive and frustrating.
Those difficulties can be compounded if the debt is an overseas transaction. The global economy continues to shrink the distances between markets and an ever greater proportion of trade is carried out internationally, through the import and export of goods and services. When these transactions go wrong, in the form of unpaid debt, many businesses struggle to adapt. Some may even be tempted to write off the debt, on the grounds that overseas debts are uncollectable.
Yet this is a mistake. Although it may take longer to recover an international debt, as opposed to a UK debt, recovery can be achieved, and one of the best ways to go about this is to employ the services of a professional debt collection agency with experience of overseas work.
Reasons for Overseas Debt Delay
So why can it take longer to recover a debt overseas? There are a number of factors that can impact the process. These include:
- Language barriers
- The impact of international law
- Time differences
- Effectiveness of the legal system
- Cultural issues
- Lack of Statutory late payment sanctions
- Attitude to debt
Although these factors can cause significant delay, that is not a reason to put off tackling an international debt. The longer it remains unpaid, the greater impact it will have on your cash flow and the less likely it is that you will ever be able to recover it.
European Debt Collection: The Legal Issues
The precise framework of rules around debt collection will vary depending on which European nation you are dealing with. These rules can specify a range of requirements, including the form that any debt collection can take, and the way that creditors and debtors should conduct themselves.
One universal rule across Europe is the principle of Statute Barred debt. This refers to a debt that has been left unrecovered for a certain period of time, after which it is no longer possible for the creditor to start Court Action to recover it. The period of time before a debt becomes Statute Barred and the associated regulations vary from nation to nation – it could be as short as 1 or 2 years from the date of the invoice – but all countries will have a similar principle enshrined in their legal framework, which means it can be costly to delay recovery of overseas debt.
If you want to collect debt from overseas or you have questions regarding international debt recovery, get in touch with us today. Our experts will be able to give you the advice you need and can help you to quickly and efficiently recover your international debt.
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