Printer FriendlyWhile collecting debts in the UK can often be troublesome collecting from overseas brings a whole new set of challenges. Companies often write-off a debt rather than employing the service of an International debt collection agency.
So, what’s so different about collecting overseas? When it comes to collecting international debt, or indeed as a general comment on trading internationally, there are four basic principles to understand – language, currency, legal frameworks, and culture.
Language: one of the
first things you will realise is that everyone speaks fluent English until it
becomes time to collect. Then there can
be all manner of difficulties, and even those who claim to speak English well
can sometimes lose a great deal in translation.
Currency: many businesses are caught out by differing rates of exchange. You may bill in one currency and be paid in another, losing hundreds of pounds because the exchange rates have changed.
Legal Framework: legal systems vary enormously but perhaps one of the most common mistakes is made by those trading with the US. There, each state has a different legal framework, and none of them allow an out-of-state lawyer to represent you in court.
Culture: different
countries have varying attitudes to debt that impact on their willingness to
pay (and time it takes accordingly). In Japan, for
example, it is morally wrong not to settle ones dues. In some parts of Italy, however,
especially the South, businesses wouldn’t dream of paying for their invoices on
time.
So why use an
International Collections agency? Placing
debts with a debt collector lets you stick to what you do best and when you
think about it, that’s got to make sense. Because you want to keep your
focus on serving your customers, not chasing them for money they owe.
Debt collection agencies will immediately send letters advising the debtor of their involvement and requesting payment of the overdue account. This will be followed up by phone in an attempt to secure payment. Often debt collectors are successful both at home and internationally for the very reason that they are third party collectors. Few companies like to discuss their financial “arrangements” (i.e. debts) with an outside body, whereas they are seemingly happy to give their supplier the run-around.
Phil Mercer, Head of Euler Hermes Collections UK comments: “The need to
collect debt is growing. With the
increase in trade comes the need for professional agencies that have the
specialist knowledge to get results. And
the best results come from agencies and clients working together in
partnership.”
Euler Hermes Collections UK Ltd is a sister company of Euler Hermes UK plc which is authorised and regulated by the Financial Services Authority. Euler Hermes Collections UK Limited is registered in England & Wales, No. 2110655, 1 Canada Square, E14 5DX.
