International debt collection: how it works, country by country

What is international debt collection?

International debt collection is the recovery of an unpaid invoice or loan from a debtor based in another country. The claim is usually worked by a collection agency or law firm in the debtor's country, in the debtor's language and under local law: first with letters, calls and payment plans, and only if that fails, through the local courts.

The basics are the same as at home. A debt is due, the debtor has not paid, and you need to prove it. What changes is everything around it: which law applies, which court can rule, how a judgment is enforced, how long you have before the claim expires, and how a debtor expects to be contacted. All of that depends on the country where the debtor and its assets are.

This guide is for businesses collecting from customers abroad, whether those customers are other businesses (B2B) or consumers (B2C). It covers the process step by step, the legal tools that work across borders, the rules in six key countries, what it costs and how to choose a partner.

Domestic vs international debt collection

How international debt collection works, step by step

Most cross-border claims follow the same five steps. The first three are pre-legal (also called amicable) collection, and this is where most undisputed invoices get settled. Steps four and five involve courts and cost more, so they are a decision you make, not an automatic next step.

1. Check the claim and collect your evidence. Confirm the amount is due and undisputed, find the debtor's full legal name and registration number, and gather the invoice, contract or order confirmation, proof of delivery and your reminders. Use the checklist in the next section.
2. Send a final demand. A short, firm letter that states the amount, the original due date, the interest you are entitled to and a new deadline. Writing it in the debtor's language helps. Our demand letter templates give you a starting point.
3. Hand the claim to a collector in the debtor's country. A local agency or law firm contacts the debtor by letter, phone and email, in the local language and during local business hours. It negotiates, and can agree a payment plan with your approval. A demand from a licensed local collector often gets a different reaction than a reminder from a foreign supplier.
4. Escalate to court if needed. If the debtor neither pays nor responds, the collector can recommend legal action: a local payment order (a fast, mostly written procedure for undisputed claims), an EU procedure for cross-border claims, or a full lawsuit if the debtor disputes the debt.
5. Enforce the judgment. A court order only becomes money when it is enforced against the debtor's assets, such as bank accounts, receivables or goods. Enforcement happens where the assets are, through local enforcement officers.

Who does what in each phase

How long it takes depends on the country, the debtor and whether the case goes to court. Pre-legal collection is usually counted in weeks; a court case abroad, in months. On Debitura, European cases have a median of 33 days to first payment and 44 days to close.

What to prepare before you hand over a claim

A collector abroad can only work with what you send. Missing evidence is the most common reason a simple claim turns into a slow one. Have these ready:

• Debtor details: full legal name, company registration or VAT number, address, phone, email and the names of the people you dealt with.
• The invoices with issue and due dates, and any credit notes or part payments.
• The contract, order confirmation or accepted quote, plus your terms and conditions. Payment terms, governing law and jurisdiction clauses matter most.
• Proof of delivery or performance: delivery notes, signed receipts, timesheets, or emails confirming the work was done.
• Correspondence: the reminders you sent, any reply, any promise to pay and any complaint.

If the debtor has complained about quality or delivery, say so up front. A disputed claim is handled differently and usually needs a lawyer's assessment before anyone contacts the debtor.

Cross-border legal tools inside the EU

Inside the European Union, creditors have procedures that do not exist between most other countries. They use standard forms and can be started without going through a full national lawsuit.

Your rights when an EU business customer pays late

The EU Late Payment Directive gives every business creditor the same baseline (European Commission, Your Europe):

• Businesses have to pay invoices within 60 days, unless they expressly agree otherwise and the terms are not grossly unfair. Public authorities have to pay within 30 days.
• If no payment period was agreed, interest becomes payable 30 calendar days after the customer receives your invoice.
• Statutory interest is at least 8% above the European Central Bank's reference rate. Each country publishes its rate: for July to December 2026 they run from 10.00% (Denmark, Sweden) to 14.50% (Romania).
• You can claim a flat EUR 40 as compensation for recovery costs, and more in some countries.

Claiming interest and the EUR 40 is not only about the money. Adding them to a demand shows the debtor you know your rights.

Collecting outside the EU: treaties, arbitration and local courts

Between most other countries there is no shared procedure. A few agreements help:

• The Lugano Convention 2007 covers jurisdiction and the recognition and enforcement of civil and commercial judgments between the EU, Denmark, Norway, Iceland and Switzerland. Source
• The 2019 Hague Judgments Convention has applied since 1 September 2023 in the EU and Ukraine, since 1 October 2024 in Uruguay and since 1 July 2025 in the United Kingdom. The United States has signed it, but it is not in force there. Source
• The 1958 New York Convention on arbitral awards has 172 parties. If your contracts send disputes to arbitration, an award is often easier to enforce abroad than a court judgment. Source

Without a treaty, a judgment from your own courts has to pass through the debtor's country's own rules on foreign judgments before it can be enforced there. That is one reason most creditors pursue the debtor where the debtor is: the claim is handled under the rules local courts already apply, and the result is enforceable where the assets are.

For the United States, Mexico, China and other markets outside the EU, the practical route is the same: a collector in the debtor's country first, local courts second. See the United States, Mexico and China pages, or the full list of countries we cover.

International debt collection by country: the rules that matter

Most countries have a fast court route for undisputed money claims, a deadline for the debtor to object, and a limitation period after which the claim can no longer be enforced. The table compares six common debtor countries.

EU interest rates are the national statutory rates published on Your Europe for 1 July to 31 December 2026. Limitation rules have exceptions and can be paused or restarted, for example when the debtor acknowledges the debt, so check the exact date with a local lawyer before a claim gets old.

For deeper country detail, read our Germany debt collection guide and Mexico debt collection guide, compare debt collection laws, or see late payment and insolvency data per country in the Global Collection Report.

Business debtors vs consumer debtors

Most countries protect consumers more than businesses, so the same unpaid invoice can fall under different rules depending on who owes it.

• United States. The Fair Debt Collection Practices Act (FDCPA) covers obligations of a consumer from transactions primarily for personal, family or household purposes (15 U.S.C. 1692a). It does not cover business-to-business debts. For consumer debts, a call is presumed convenient only after 8 a.m. and before 9 p.m., local time at the consumer's location (15 U.S.C. 1692c).
• England and Wales. The Pre-Action Protocol for Debt Claims applies when a business claims from an individual, including a sole trader. The debtor gets 30 days to reply to the letter of claim before court proceedings start (Ministry of Justice).
• European Union. The statutory interest and EUR 40 compensation from the Late Payment Directive apply to business-to-business transactions and to public authorities, not to consumers (Your Europe).
• Personal data. When the debtor is a person or a sole trader, their data is personal data. Your collector should process it under a data processing agreement.

Consumer claims also tend to need more paperwork. Expect your collector to ask for the signed contract or order and proof of what was delivered, even for small amounts.

What international debt collection costs

There are three common pricing models, and many providers combine them: a success fee for the pre-legal phase and separate legal costs if the case goes to court.

Rates vary with the country, the claim size and the claim's age, so compare quotes for your actual claim rather than headline percentages. Ask three questions: is anything payable if nothing is collected, who pays court fees if the case escalates, and will legal action start only with your written approval?

Part of the cost can often be passed to the debtor. In the EU you can claim a flat EUR 40 for recovery costs plus statutory interest. In the UK you can claim fixed sums of GBP 40, 70 or 100, depending on the size of the debt, plus statutory interest (GOV.UK). Whether agency fees beyond that can be recovered depends on local law.

On Debitura there is $0 upfront. You pay a success fee only when money is recovered: from 6% in Europe and 7.5% elsewhere, depending on claim size and the debtor's country. The fee is shown before you submit. Claims older than 12 months cost more, and that uplift is also shown before you submit. Legal action is optional, quoted separately and starts only when you accept. See pricing to check the fee for a specific claim.

How to choose an international debt collection agency

The right partner depends on how many countries you collect in and how much control you want. Whatever you choose, check these points:

• Who works the case locally. Ask which agency or law firm will contact your debtor, and whether it is licensed or registered where the debtor is.
• Language and time zone. The debtor should hear from someone who speaks their language, during their business hours.
• Fees before you commit, including what happens if the case goes to court.
• Your control over escalation. No legal action and no settlement below the full amount without your approval.
• Visibility. You should see case status, messages and payments without chasing updates by email.
• Data protection. A data processing agreement that covers the debtor's personal data.
• Contracts. With debtors in several countries, a separate agreement with each local agency multiplies the admin. One agreement that covers every country keeps it simple.

Red flags: large upfront fees for pre-legal work, promises of a specific result, reluctance to say who works the case locally, and no written agreement.

How to prevent unpaid invoices abroad

Late payment is getting more common. Intrum's European Payment Report 2026 surveyed 8,385 businesses across 20 European countries and found that the average share of revenue received late rose from 11.33% in 2025 to 12.13% in 2026. In the same research, 62% said late payments had caused them to fall behind on paying their own suppliers, and the share of businesses requiring customers to prepay grew from 31% in 2020 to 50% in 2026 (Intrum).

• Check new customers before you give credit: company registry, credit report and payment history.
• Put it in writing. Agree payment terms, governing law and jurisdiction (or arbitration) in the contract and get them accepted. Our payment terms guide has sample wording.
• Ask for security from new or high-risk customers: prepayment, a deposit or a letter of credit.
• Invoice promptly and correctly, with the right legal entity, and in the customer's language and currency where that helps.
• Remind on a schedule and call before the claim gets old. See our accounts receivable guide for a reminder workflow.
• Know your deadline. Limitation periods run from 3 to 10 years in the countries above, and the clock can start earlier than you expect.
• Hand over undisputed claims early. Older claims are harder to collect and usually cost more.

How to measure your collection performance

Five numbers show whether your receivables process works, at home and abroad. Track them per country to see where customers pay slowly.

If you collect at volume, debt collection software can track these for you and hand overdue invoices to collection automatically.

How Debitura handles international debt collection

Debitura is a debt collection platform, not an agency. Each claim is matched to a licensed local collection agency or law firm in the debtor's country, which collects under local law. It covers undisputed unpaid invoices and loan repayments in the pre-legal phase, from businesses and consumers, in 180 countries.

• One agreement. You sign the Standard Debt Collection Agreement once, and it applies to every country.
• One platform. Every case, message and payment is in one place, and you talk to the partner working your claim directly in the case chat.
• Partner checks. A partner's license or registration is checked before it joins, results are followed on the platform, and in key markets new partners are tested against existing ones. Partners must resolve open tasks and respond within 48 business hours.
• No Cure, No Pay. $0 upfront, and a success fee only when money is recovered.
• Connects to your systems. Submit by CSV import, accounting integrations, Zapier, the REST API with webhooks, or the MCP server for AI assistants.
• Data protection. Debitura acts as your processor, the DPA is signed self-service, and data is hosted on Microsoft Azure in the EU, encrypted in transit and at rest.

More than 5,000 businesses have registered. On European cases, the median time to first payment is 33 days and the median time to close is 44 days. See how it works, step by step.

Key debt collection terms

The terms you will meet most often when collecting abroad.