Top-Rated Debt Collection Agency in Benin

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4.97/5 Average rating from 600+ reviews
WHY USE DEBITURA? 

Recovering your debt in Benin is easily accomplished through the following method.

Debitura is an expert in debt recovery services in Benin. Our team of skilled professionals provides a range of services, such as managing accounts receivables, issuing debt collection notices, performing pre-legal and legal debt collection, and carrying out enforcement court proceedings. We are well-versed in Benin debt collection regulations, ensuring that we deliver efficient and effective solutions that aid enterprises in recuperating their outstanding debts.

We provide continuous support from the beginning to the end.

Tailored approach to collections.

We have a team of over 500 international debt collection experts.

Achieve a success rate of 87% whilst keeping costs at a minimum.

Here is a rephrased headline: "Benin's Top Debt Collection Lawyers: Our Local Legal Partners"
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The ultimate guide about debt collection in Benin

If you have a financial claim against a business or customer in Benin, we can help you. We have helped hundreds of other businesses recover debt in Benin.


It can seem impossible to collect a debt in Benin. Language barriers, different laws and customs, and distance all make it very hard.


Using a collection agency that knows the laws and customs of the debtor's country makes it easier to get money back that is owed to you.


At Debitura, we always try to help you get your money back while still being friendly with the person you lent it to. Our PR efforts are always fair, but we will be firm if we need to be. If you want to understand the whole process of debt collection in Benin, keep reading this guide. But if you would rather have a law firm do it for you, we can help with that too.

New to debt collection?
The debt collection process can be complex and daunting for those new to it. Our team of experts is here to help you understand the process and navigate it with ease. Get free expert advice on your specific case, provided by our team of experienced professionals.

Debitura can help you get your money back from someone who owes you money. You can start by uploading your claim. We will look at it and give you some options within 24 hours. We use a people-oriented approach with the latest tech-driven solutions to drive results and provide better contact management. This comprehensive method gets you the results you need while preserving customer relationships. In addition, our network of debt collectors, attorneys, suppliers and vendors are cherished relationships that allow us to get the job done. We value each of these relationships, no matter how small or large they might be.

We work with the following process: 
1

Upload claim

Begin collecting your outstanding debt in Benin without any cost today. Just create a free profile, and upload your case within only 2 minutes.

2

Pre-legal

During the initial 3 months, we use our effective pre-legal recovery method to collect your debt. We follow a no-cure-no-pay approach, which means you only pay if we're successful.

3

Legal

If your claim remains unpaid during the pre-legal phase, we will connect you with three local debt collection attorneys who will provide you with quotes.

4

24/7 updates

You get access to our online portal where you can track your case in real-time

Introduction to collecting debt in Benin

Do you have a lot of debt in Benin? Do not worry; we can help you get paid by your Beninese customers.


In Benin, the person who owes money is called "the debtor." The person who gave the money or invoice is called "the creditor." If the original creditor collects the debt, this is called "first-party collection." If the creditor gives the debt to someone else to collect, this is called "third-party collections."

  • Most of the time, few small and medium enterprises (SMEs) are able to meet their promises. Before agreeing to any credit deals, it is crucial to do your research and ask for collateral from the buyer. This is something that they can use to guarantee the payment. While a debtor may request a grace period of up to one year, late payment interest is generally around 5%.
  • The courts in Benin are usually independent and honest. But sometimes people bribe the judges or lie to them. There are some new laws being made to help with this.
  • When people try to get money from a company that owes them money, sometimes the company doesn't have enough money because the person who owns the company has been using the company's money for themselves. This is called 'diminishing assets.' It makes it hard to get the money you're owed.

Days Sales Outstanding (DSO)

The payment terms usually state that payments are due within 30 days, but in practice, payments usually occur within 60 to 90 days.

Common payment types in Benin

Bank transfers are a popular way to pay for things in Benin because they are quick, safe, and supported by a growing number of banks both inside and outside the country. Sometimes it is necessary to check whether a bank is safe before sending money through it, as the person who is owed the money needs an up-to-date invoice in order to get permission from the Ministry of Finance to collect the money. This rule has been put in place by the Central Bank to help prevent money laundering.


Checks can be used as proof that someone owes you money. The check shows that the debt is real and not disputed. This can help move things along quickly in court or even lead to a criminal case if necessary.

Main corporate structures

In Benin, there are many different types of companies. The two most common are SARL and SA.

  • A Limited Liability Company (SARL) is a company where the people who own it are not responsible for any debts the company has. The minimum amount of money needed to start a SARL is around EUR 150. A SARL can have one partner who owns all of the shares, or it can have multiple partners.
  • Public Limited Companies (Société Anonyme, SA) have either a General Director or a Board of Directors. SA entities are often used by larger companies because they offer rules and protection to the shareholders. The minimum capital required for a SA is CFA approx. EUR 15,200.
  • Another type of company is called a Sole Proprietorship. This is when one person registers to do business. Usually there are some things that this person is not allowed to do, but sometimes people do them anyway. For example, Sole Proprietors are not allowed to have an importer card, but sometimes they find a way to get one anyway.
  • An economic interest group (GIE) is not a company. It is a legal entity that helps people do business together. A GIE can be created without money and it does not make money itself. But this type of organization is rare in Benin.

The debt collection process in Benin

The debt collection process in Benin usually happens in more than one step. The picture below shows the standard way to collect debt in Benin:

The debt collection process in Benin here:

1 Upload your claim:

If you want someone to help you get your money back, you need to find a debt collection partner. You can upload your claim to their website. If you use Debitura, we will give you 3 quotes from local partners in the African country that is related to your case. This is free - no strings attached.

2 Amicable collection:

The collection process usually starts with sending the person who owes you money some friendly reminders. We will try to reach them in different ways, like through email, text, or letter. The goal is to get them to agree to pay the debt, or at least start a payment plan. If we are successful and we collect your debt, you will only have to pay a small success fee. With Debitura's no-cure-no-pay solution, there is no risk!

3 Evaluation:

If you still have not received payment from the debtor after trying to work things out, it is time to look at what to do next. We will look at how much money you are owed, the chance of getting paid and other factors to help you decide what to do. There are three common next steps:

A Surveillance:

If the amount of money you are owed is less than 2.000-5000€, it might not be worth it to take further legal action. In this case, we recommend "debt surveillance", where we will keep trying to contact your debtor and try to reach an agreement.‍


B: Legal collections:

We suggest starting paperwork for big claims. The paperwork will be different depending on how big your claim is and what it is about. Generally, it will take about a year and a half to finish the process.

C: Debt enforcement:

If the person you are owed money from has said they owe you money, or if there is a court order saying they owe you money, you can go to the bailiff's court. The court will help you get your money.


At Debitura, we can help you with all three steps in Benin.

5-star user rating5-star user rating5-star user rating5-star user rating5-star user rating
"Thanks to Debitura, our business in Benin has been able to recover overdue payments that were considered lost. The debt collection service in Benin provided was fast, efficient, and professional. Highly recommended!"
Yvette Mukamabano - Accounts Receivable Coordinator.
5-star user rating5-star user rating5-star user rating5-star user rating5-star user rating
"Thanks to Debitura's top-notch services in debt recovery Benin, we were able to reclaim our outstanding payments in no time. The team's professionalism and efficiency exceeded our expectations. Highly recommended."
Celine Adande - Accounts Receivable Manager
4.97/5
Average rating based on feedback from over 600 satisfied clients
87%
Average debt recovery rate, exceeding industry standards
100M+
Debt recovered for our clients in the past 18 months

Amicable collection in Benin

At Debitura, we offer a 100% risk-free and efficient process for Amicable collections. To get started, simply submit your claim and we will begin within 24 hours.


We will contact your debtor in Benin using all available methods, including email, text messages, letters, phone calls, and social media.


The goal of this process is to either:


A) get the debtor to pay the full amount, or
B) get the debtor to agree that they owe money and start a plan to pay it back


If the person you are trying to collect money from disagrees with your claim, you cannot try to resolve it amicably. You must go directly to legal collections.

Late Payment Interest

There are laws that allow creditors, or people who you owe money to, to charge extra money if you do not pay them on time. The OHADA Treaty is a set of rules that Benin has agreed to that governs sales between businesses. This Treaty covers things like creating a sales contract, what each person involved in the sale agrees to do, and what happens if someone does not do what they agreed to do.


If you pay late, you have to pay more money. This extra money is called "interest." The Central Bank decides how much interest people have to pay. It is usually around 5%. But sometimes people agree to pay more than the legal amount of interest in their contract.

Get started with
amicable debt collection

Upload your claim and get started with our 100% no-cure-no-pay collection solution.

100% free
Get the best price
No-cure-no-pay
Fast collection process
High recovery rate
100%
Risk free
Upload claim!

Debt enforcement in Benin

If you have written proof that the person you are trying to get money from owes you money, or if a court has ordered them to pay you, you can go to the bailiff's court in Benin to get your money.

In Benin, you do not need permission to start enforcing a final decision in commercial matters. You only need to get the copy of the decision that says you can start enforcing it. To get this copy, you have to pay a registration fee of 4%. After you have the copy, go to the person who owes you money and give it to them. Tell them they have eight days to pay the amount that is written in the decision.


If the debtor doesn't do what they're supposed to, the creditor may take their stuff, money that is owed to them by other people, money in their bank accounts, shares or securities, fixed assets, or salaries.


The person who owes money may try to stop the seizure by going to the Trade Tribunal. But if the complaint is not successful, the person who lent the money may go ahead and sell what was seized or collect the money that was seized.

The process of getting money back and how much it will cost varies depending on your case. You can upload your case onto the Debitura website to get 3 quotes from different people within 24 hours.

Get started with
debt enforcement

Upload your claim and get 3 FREE quotes from our local collection partners.

100% free
Get the best price
No-cure-no-pay
Fast collection process
High recovery rate
100%
Risk free
Upload claim!

Insolvency proceedings in Benin

If the person you lent money to cannot pay you back, there is a final stage you can initiate. This is called an insolvency procedure. The goal of this procedure is to take the things that the debtor owns and give them to the people he/she owes money to, following a set order of importance.

  • Out-of-court proceedings are not available in Benin.
  • Restructuring the debt is decided by the court, based on an expert report assessing viability.
  • The first type of restructuring is preventative settlement, which is only available to those who are not insolvent and must include a composition offer detailing how the financial situation will be improved.
  • The second type of restructuring is administration, in which the debtor files a declaration of cessation of payments and submits a composition proposal within 15 days.
  • If neither improve the situation enough, liquidation occurs and all debts become immediately due.
    Creditors are paid according to priority rules out of proceeds from selling assets until there are insufficient funds left for some creditors who then receive proportionate shares instead if their full claim amount.

Benin country risk profile

We have investigated Benin's critical financial data and extrapolated a risk assessment. You can use this analysis to classify your payment terms and control the risk when trading and doing business with customers in Benin.

Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26

Our analysis concludes that the risk of doing business in Benin is medium. Based on this medium score, we recommend being careful providing credit and considering charging upfront payment or using credit insurance when trading if you don't know the customer in Benin well. If possible, provide a short credit period or even better upfront payment. The medium risk score is based on the following factors:

Economic Risk:
5
Economic Risk:
5
Economic Risk:
5
Economic Risk:
5
Economic Risk:
5
Economic Risk:
5
Business Risk:
4
Business Risk:
4
Business Risk:
4
Business Risk:
4
Business Risk:
4
Business Risk:
4
Political Risk:
4
Political Risk:
4
Political Risk:
4
Political Risk:
4
Political Risk:
4
Political Risk:
4
Commercial Risk:
2
Commercial Risk:
2
Commercial Risk:
2
Commercial Risk:
2
Financing Risk:
3
Financing Risk:
3
Financing Risk:
3
Financing Risk:
3

The economic risk in Benin

Economic risk in Benin is high (5 out of 6). An economic risk of 5 out of 6 is pretty average in Africa.

GDP and economic growth are critical drivers for economic risk.
The GDP of Benin is 17,79 bn. USD (2021), growing by 6,6% per year.

In terms of the size of its economy, Benin ranks #118 out of 183 countries and has a medium-sized economy.

Having a view at the growth rate, it is ranked #53 out of 183 countries and is therefore considered a fast-growing economy.

GDP per capita is 1428 USD, ranking Benin number #146 out of 183 countries. This means the purchasing power of citizens in Benin is low compared to the rest of the world.

You get a more detailed idea of GDP and economic growth in Benin in the table below:

GDP and economic growthLatest value
Economic growth: the rate of change of real GDP6,6%
Gross Domestic Product, billions of U.S. dollars17,79
GDP per capita, current U.S. dollars1428,45
GDP per capita, Purchasing Power Parity3449,2

Another critical driver for the economic risk score is the inflation rate and the interest rates. You get a more detailed idea of monetary KPIs in Benin in the table below:

Monetary KPI'sLatest value
Inflation: percent change in the Consumer Price Index1,7%
Business credit interest rate, percent6,25%

The inflation in Benin was 1,7% in 2021 which is considered a very low inflation rate.

The interest rate for businesses is 6,25%.

The business environment risk in Benin

Our analysis shows that the business environment risk in Benin is medium-high (4 out of 6), which is a relatively low risk score in Africa.

Economic freedom and rights has a big influence on the business environment risk in a country. You can see the critical facts for Benin in the table below:

Economic freedom indexLatest value
Property rights index (0-100)43
Freedom from corruption index (0-100)32
Fiscal freedom index (0-100)68
Business freedom index (0-100)55
Monetary freedom index (0-100)83,7
Trade freedom index (0-100)60
Investment freedom index (0-100)50
Financial freedom index (0-100)50
Economic freedom, overall index (0-100)60

As you can see in the table, the property rights index is 43 in Benin, which is considered quite low in Africa.

The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 55 in Benin, a pretty average score for a country in Africa.

Benin's overall economic freedom index is 60 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.

The political risk in Benin

The political risk in Benin is medium-high, with a score of 4/6. This is a relatively low political risk score in Africa.

The governance and political stability indicators are critical drivers for political risk. An overview of Benin can be seen in the table below:

Governance and political stability indicators Latest value
Rule of law index (-2.5 weak; 2.5 strong)-0,59
Government effectiveness index (-2.5 weak; 2.5 strong)-0,21
Control of corruption (-2.5 weak; 2.5 strong)-0,15
Political stability index (-2.5 weak; 2.5 strong)-0,3
Corruption Perceptions Index, 100 = no corruption42
Shadow economy, percent of GDP48,28%

The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.

When doing business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.

In Benin, the rule of law index is at -0,59 points, with the score going from -2.5 (weak) to 2.5 (strong). Benin has, therefore, a very low rule of law index, which means it is often close to impossible to enforce your contracts. We, therefore, recommend avoiding credits and recommend charging upfront payment instead.

Other drivers for the medium-high political risks are the weak control of corruption, the very weak political stability index, and the very large shadow economy that is 48,28% of Benin's GDP.

The commercial risk in Benin

In Benin, the commercial risk score is 2/4, which in our model is a low score. This low commercial risk score is pretty average compared to the average in Africa.

The financing risk in Benin

We have calculated the financing risk to be 3/4, which equals a medium risk. A medium financing risk score is pretty average for countries in Africa.

The country's banking system, efficiency, and stability influence the financing risk. You can find the critical facts for Benin in the table below:

Banking system efficiency and stabilityLatest value
Interest rates on bank credit to the private sector6,25%
Real interest rate: Bank lending rate minus inflation3,46%
Index of legal rights for creditors and borrowers (0 = weak to 12 = strong)6
Credit information sharing index, 0 (low) - 8 (high)0

In Benin, the credit information sharing index is 0 on a scale from 0 (low) to 8 (high). The consequence of that number, is that the access and quality of credit information available in Benin is very low.

This makes it very difficult for you to understand the credit risk of your counterpart in Benin. Unless you have a strong relationship with your customers in Benin, we highly recommend charging payment upfront or using credit insurance.

Your legal rights as a creditor (and as a borrower) are 6 out of 12 and, therefore, weak.

The medium financing risk for creditors also impacts the high interest rate in the private sector of 6,25%.

Debt Collection in Benin: Frequently Asked Questions (FAQ)

How does debt collection work in Benin?

In Benin, debt collection usually happens in multiple steps. You can upload your claim to a debt collection partner, who will try to reach the debtor through various means. If successful, you'll only have to pay a small success fee. If not, the debt collection partner will evaluate your case and suggest next steps such as debt surveillance, legal collections or debt enforcement. There are different types of corporate structures in Benin and payments are usually made through bank transfers or checks. Late payment interest is generally around 5%.

What is the debt collection process in Benin?

The debt collection process in Benin involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Firstly, you can upload your claim to a debt collection partner. Secondly, they will attempt amicable collection through reminders and negotiations. Finally, evaluation is done to decide whether to continue with legal collection or debt enforcement through the bailiff's court. Debitura can provide assistance throughout the process in Benin.

What legal options exist for debt collection in Benin?

In Benin, if a debt is disputed, a civil lawsuit is required. Legal actions require a local lawyer. Debt enforcement and insolvency proceedings are also available if necessary. Commercial cases are handled by the Trade Tribunal, Trade Court of Appeal, or Supreme Court OHADA. The Common Court of Justice and Arbitration is the last resort for countries who have signed the OHADA Treaty. Insolvency proceedings are a final option, but only available after preventative settlement or administration have been attempted. Creditors are paid based on priority rules out of proceeds from selling assets.

How much does debt collection cost in Benin?

At Debitura, we offer a no-cure-no-pay model for pre-legal debt collection in Benin with a success fee between 10-20%. The cost for legal actions depends on your specific case and desired actions. We can provide you with 3 quotes from the best debt collection lawyers in Benin to help you make an informed decision.

How long does debt collection take in Benin?

The duration of debt collection in Benin mainly depends on factors like the debtor's cooperation and the complexity of the case. If the case is resolved during pre-legal actions, expect the process to take 3-6 months. However, if legal actions have to be taken, the collection process will generally take 12-18 months.