Recovering money owed to your business is an important part of maintaining financial control and ensuring that creditors will continue to sell to you in future. However, it can be difficult to recover what you’re owed when dealing with international suppliers, especially those operating in emerging markets or low-income countries. Many small businesses give up at this point because they think there is no way to get their money back. Fortunately, specialist agencies help businesses recover debts from suppliers operating in different countries or regions. These global debt recovery agencies deal directly with the suppliers on your behalf and take care of the entire process so you don’t have to. Read this blog post to learn more about hiring a global debt recovery agency and whether or not it’s right for you.
What Is a Global Debt Recovery Agency?
A global debt recovery agency is a specialized company that helps businesses recover debts owed by overseas suppliers. It acts as the middleman between you and the supplier, tracking down the money owed and negotiating payment terms. The agency will likely have experience collecting debts from suppliers in various industries operating in different countries.
How Does a Global Debt Recovery Agency Work?
Most global debt recovery agencies will charge a commission on the amount of money you are owed. This can vary from 10% to 40%, depending on the agency and the effort the supplier will put into repaying the debt. Here are the main steps a debt collector will take when attempting to recover your debt: – Establishing contact – Debt collectors first need to establish contact with your supplier to find out exactly why they aren’t paying you. They might also need to track down the supplier first, so they can either locate them online or go to the supplier’s physical address. – Offering a payment plan – If the supplier has a valid reason for not paying you, such as high operating costs or a natural disaster, you may be able to negotiate a payment plan. This will give the supplier time to get their finances in order while ensuring you’re not left out of pocket. – Issuing a final notice – If the supplier isn’t willing to make repayments, the debt recovery agency will issue a final notice and begin legal proceedings.
When to Hire a Global Debt Recovery Agency
If you’ve tried unsuccessfully to recover debt from a supplier operating abroad, you should consider hiring a global debt recovery agency. This is especially true if you’re dealing with a supplier in a low-income country where the cost of legal action is prohibitive. A debt collection agency can be more flexible about repayment terms since the cost of pursuing a legal case is often too expensive for a small business. You should also consider hiring a debt collection agency if you’re dealing with a specific debt, such as an insurance claim or unpaid taxes. Many small businesses have recovered such debts independently, but the process can be long and complicated.
How to Find the Right Global Debt Recovery Agency for You
Before hiring a global debt recovery agency, you should research to find the best company for your needs. At a minimum, you should have three agencies to compare against each other to ensure you’re making the right decision. Here are a few things to remember when choosing a debt collection agency: – Experience – Debt recovery agencies come and go, so you want to find an agency that has been in business for several years. This will give you a better chance of getting your money back. – Reputation – You can find reviews and ratings of debt recovery agencies online. This way, you know what other businesses have experienced when dealing with the agency you’re considering. – Terms and conditions – Ensure you understand the terms and conditions of working with the agency. Make sure they’re willing to work with you and your particular issues.
Why Hire a Debt Recovery Agency?
The Bottom Line
Hiring a debt collection agency might seem like a drastic move, but it makes perfect sense if you’re dealing with a supplier that won’t pay or a country where legal action is too expensive. There are many benefits to hiring a global debt recovery agency, such as: – Cost – Debt collection agencies are likely to charge a lower commission than a legal firm. This is especially true if you’re dealing with an emerging market supplier. – Flexibility – Debt recovery agencies can be more flexible with their payment terms than a law firm, since they have less at stake in any given case. – Time – Recovery agencies have experience in tracking down suppliers and negotiating with them. This means you can recover your money faster than dealing with the supplier.
Every small business relies on suppliers to make money, but many fail to pay their bills. When this happens, it’s important to know that there are ways to recover the money owed to you, even when dealing with suppliers living in a different country. This can be difficult to do independently, especially when dealing with suppliers in emerging markets or low-income countries. Fortunately, global debt recovery agencies can help with the process. Before hiring a debt collection agency, it’s important to make sure you choose the right agency for your needs. You should also understand how a debt recovery agency works before you decide whether to hire one.
