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International Debt Collection

For many companies, exports are seen as opportunities to increase the company's market share, revenue and profits.  To be effective in international debt collection, a collector must first be an effective domestic debt collector.  These skills are readily transferrable to international debt collection provided that the collector is also able to:

    • Appreciate, accept and honor the cultural nuances associated with effective international debt collection
    • Rapidly adapt to complex and sometimes country specific debt collection practices, procedures and norms, and
    • Know, understand and obey all applicable regulations and laws pertaining to debt collection in the country in which the debtor is located.

If the trade creditor is not able to collect from a foreign debtor, that creditor may hire an international debt collection agency.  That agency could be a domestic agency with employees in the target country.  It could involve an arrangement in which the domestic third party collection company has an arrangement with another collection agency in the target country.  A third option for the exporter involves contacting a collection agency in the target country directly, negotiating a collection fee, and dealing directly with that foreign third party collection agency.

© 2011.  Michael C. Dennis.  All Rights Reserved