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 Sweden, 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 Swedish 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.
Contact Us
If you have cases that you want to have assessed and processed, or if you simply want to talk to us about processing cases in countries outside Sweden, just get in touch with us.
Why choose Kredinor as a partner in international debt collection?
- Our international department has extensive expertise. They understand international debt collection, legislation, conventions and treaties
- We work with debt collection companies and lawyers around the world who specialize in international debt collection.
- We are a member of the European Collectors Association (ECA), established in 1981 with one exclusive member in all European countries.
- All members of the ECA are specialists in their country’s legislation, culture and collection measures. They all have broad linguistic competence.
- Through our network, we find “hidden” debtors all over the world.
- Our clients receive reports and updates on every single case we receive for processing.
- Kredinor’s international department is your point of contact no matter where in the world collection takes place
- We offer competitive prices on collection worldwide.
- As a cooperative business, we are owned by our clients. When you who choose us, you become one of our owners. That gives us a special responsibility for you.
ECA – European Collectors Association
The ECA was founded in 1981 by, among others, Kredinor. Kredinor’s CEO, Tor Berntsen, was president and chairman of the ECA for 12 years. The organization consists of one exclusive member in each European country and acts as a network for European debt collection companies. The ECA’s members meet for an annual general meeting, which contributes to good relations between the debt collection companies. The organization has a flat structure and it is easy to access the highest management level in these companies. This helps to ensure that our cases are given high priority and the best treatment.