No business can run away from customers or clients who are late-payers or refuses to pay the debt altogether. While it is still easy for a business to collect a debt from a delinquent who is local to their region, it is extremely difficult to collect a debt from debtors who live internationally. Debt collection internationally is difficult because a business has no idea about the laws of that country. Collection laws in each country are different, and also a business has no right to recover any outstanding amount from international waters. But they can hire an international collection firm like Cedar financial for recovering their debt.
Still, it is better to prevent such debt and that is why you need to ensure that you perform the following checks.
Things to do before you offer credit to a customer
1. Credit checking
You must check the credit history of the customer to ensure that they will pay the bills on time, and there are no outstanding payments. You don’t need permission to run a credit check unless the client is a sole trader. When you check the credit history of an individual or a business, you get information regarding their net worth, their credit rating, whether they have other debts, and if they are paying on time or not. All this will help you decide if the customer is trustworthy enough to give credit or not.
2. Ask them to fill a credit application form
You must get the customer to fill a credit application form. It will provide you with information regarding the name of the company or the individual, their home and business addresses, contact numbers, and so on. It will help you get references from the bank, and other suppliers about their credit history.
If you want, you can add a personal directory to it, which states that in case of liquidation, the director of the business who is resisting the debt is responsible for it. This is crucial for credit control, and in case a debt collector is hired.
3. Check the references
Make sure you check all the references that you take from the customer. Search them on Google and make sure that they are authentic and genuine. Also, talk to their other creditors to get the knowledge about how prompt they are in their payments.
What to do when your international clients refuses to pay the debt?
The first thing you need to do is figure out the reason why the debtor is not paying you. It can be because of some business or financial issues or simply due to their forgetfulness. In both the case, if the delinquent refuse to pay or is in international waters and tracking him/her is hard, you should hire a debt collector. Also, if the debt goes beyond 180 days, you need to hire a collector who can collect the debt on your behalf.
A debt collector will work for you without any fee. They only take commission and that too after they recover the debt. They are familiar with all international laws and have offices in various countries that help them recover debt easily.
If you want to know more about the international collection agency, visit our international debt recovery page.
Still, it is better to prevent such debt and that is why you need to ensure that you perform the following checks.
Things to do before you offer credit to a customer
1. Credit checking
You must check the credit history of the customer to ensure that they will pay the bills on time, and there are no outstanding payments. You don’t need permission to run a credit check unless the client is a sole trader. When you check the credit history of an individual or a business, you get information regarding their net worth, their credit rating, whether they have other debts, and if they are paying on time or not. All this will help you decide if the customer is trustworthy enough to give credit or not.
2. Ask them to fill a credit application form
You must get the customer to fill a credit application form. It will provide you with information regarding the name of the company or the individual, their home and business addresses, contact numbers, and so on. It will help you get references from the bank, and other suppliers about their credit history.
If you want, you can add a personal directory to it, which states that in case of liquidation, the director of the business who is resisting the debt is responsible for it. This is crucial for credit control, and in case a debt collector is hired.
3. Check the references
Make sure you check all the references that you take from the customer. Search them on Google and make sure that they are authentic and genuine. Also, talk to their other creditors to get the knowledge about how prompt they are in their payments.
What to do when your international clients refuses to pay the debt?
The first thing you need to do is figure out the reason why the debtor is not paying you. It can be because of some business or financial issues or simply due to their forgetfulness. In both the case, if the delinquent refuse to pay or is in international waters and tracking him/her is hard, you should hire a debt collector. Also, if the debt goes beyond 180 days, you need to hire a collector who can collect the debt on your behalf.
A debt collector will work for you without any fee. They only take commission and that too after they recover the debt. They are familiar with all international laws and have offices in various countries that help them recover debt easily.
If you want to know more about the international collection agency, visit our international debt recovery page.
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