International debt collection- when to respond to delays?

International debt collection- when to respond to delays?

Every second Polish entrepreneur faces problems related to the regulation of payments from foreign partners. Are you wondering how to deal with delays and when to take action to recover from foreign partners?

Arrears are an international practice

Many entrepreneurs had to deal with them. Transaction patterns are different for each country. Below is the infographic showing the payment barometer in the world. The infographic clearly shows that the worst is paying in Poland and Portugal. However, the best payers on the old continent are entrepreneurs from Germany. They are famous for their reliability and timeliness.  Among them, there is practically no problem of late payments in the long-term perspective of several months.

So if you do business with German contractors

You should not be afraid of delays. It is also good in the Benelux countries. They have been among the most economically stable for a long time. The Dutch pay half on time, the Belgians pay 44%.

Poland, Spain and Portugal are among the worst payers in Europe. In Portugal, only 17% of entrepreneurs make payments within a set period of time, and more than 11% of commitments have an age of more than three months. It’s not much better in Spain. 8.3% of payments are made within more than 90 days. So when working with contractors from the Iberian Peninsula, you should be more vigilant and not allow even slight delays.

When to react

Considering the information presented above, one should answer the question when and how to respond to delays. Since the recovery of domestic debts has become a good practice, it is time to abandon the once quite common opinion that foreign debts are unrecoverable and should be considered as irretrievably lost debts. The range of tools supporting the creditor is large, so do not wait.

If, after the payment deadline, the recipient avoids contact and does not provide a specific reason for the delay, you should refer the case to debt collection as soon as possible. It is also best to limit your own debt recovery attempts . Independent actions are extremely difficult. They are associated with great commitment to the legal complexities of the case and often require investing in staff training. An additional threat may be the deterioration of relations with contractors. In such a situation, ordering an external debt collection company is a much better solution. It will introduce an element of professionalism and result in faster recovery.

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