Top-Rated Debt Collection Agency in Brazil

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

Recovering your debt in Brazil is easiest via this way.

Debitura is a specialized debt recovery company that offers a wide range of services in Brazil. Our team of experienced professionals can provide effective solutions for accounts receivables management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. We have in-depth knowledge of Brazil's debt collection laws and regulations to ensure efficient and productive debt recovery for businesses.

We provide unwavering assistance throughout the entire process.

Tailored debt recovery approach.

We have over 500 specialists available for global debt recovery.

Achieving a remarkable success rate of 87% while keeping the costs at its minimum.

INTRODUCING OUR LEGAL PARTNERS: Top Debt Collection Lawyers in Brazil
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The ultimate guide about debt collection in Brazil

Are you struggling to recover debt from a business or individual in Brazil? You are not alone; we have achieved success for countless other companies who faced the same difficulty.

Receiving reimbursement can be an intimidating prospect, considering all of the language and cultural barriers, foreign regulations and legislation, as well as physical distance that stands between you and your debtor. Fortunately, our team is proficient in all local laws and customs - allowing us to make debt recovery easier than ever before!

At Debitura, we put people first- doing our utmost to recover your money while still preserving a healthy rapport with the creditor. Our PR methods are fair yet clear and concise; safeguarding your reputation is paramount for us! If you would like to learn about Brazilian debt collection from start to finish and handle retrieval yourself, continue reading this guide. Otherwise, if you'd prefer working with a local law firm that specializes in recovering debts in Brazil, we're here at Debitura ready to help!

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.

Ready to get your debt collected in Brazil and +200 additional countries? Look no further than Debitura! All you have to do is upload your claim today. Within 24 hours, we'll provide 3 free quotes from local Brazilian debt collection lawyers right away so you can start reclaiming what's yours. At Debitura, not only do we utilize the latest technological solutions for superior contact management but also combine that with a people-oriented approach — all in an effort to preserve customer relationships while driving results. Claim back what's rightfully yours by signing up with us now! We value the relationships we've built with our network of debt collectors, attorneys, suppliers and vendors - no matter how small or large. These trusted partnerships have allowed us to accomplish all that's been set before us.

We work with the following process: 
1

Upload claim

Begin the process of collecting your debt in Brazil today at no cost. Quickly create a free profile and upload your case in just 2 minutes.

2

Pre-legal

During the initial 3-month period, we will attempt to recover your claim utilizing our effective pre-legal collection method. This service is completely no-cure-no-pay.

3

Legal

If your claim remains unpaid in the pre-legal phase, we offer you three quotes from debt collection attorneys in your area.

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 Brazil

Struggling to receive payments from your Brazilian customers? We understand the difficulty of debt collection in Brazil, and we're here to make it simpler. In this process, you—the creditor who issued the invoice—are identified as such; meanwhile, those owing a debt are known as "debtors". To collect these debts quickly and efficiently, there are two options available: first-party collections (when you manage the transactions on your own) or third-party collections that involve outsourcing this responsibility to another entity. Let us help get what's yours!

  • The payment behavior of Brazilian businesses is suitable, but the standard payment terms are quite varied and Days Sales Outstanding (DSO) remains high.
  • Since legal action in Brazil can be expensive and time-consuming with no guarantee of a successful outcome, it's advisable to seek amicable resolutions or use professional debt collection services as an alternative to litigating in court.
  • When dealing with insolvent debtors, using recovery mechanisms like bankruptcy processes is becoming popular; however chances for recovering money from them remain very low.

Days Sales Outstanding (DSO)

Brazilian companies are still managing to meet their payments, despite the economic troubles since 2014. Unfortunately, late payments are normally inevitable unless transactions have been insured - with an average DSO of 70 days and payment terms ranging from 30 days in the retail industry to 210 days for agriculture businesses. Moreover, it is noteworthy that over recent years there has been a significant rise in DSOs among listed firms.

The SERASA database is open to all companies, allowing them to access records of late payers and payment failures. This makes it hard for unreliable debtors to secure new lines of credit. It should be acknowledged that this public information only applies domestically; there are no publicly available data about international debts.

Common payment types in Brazil

Below is a comprehensive list of the most prevalent payment methods:

Bank transfers are increasingly becoming the go-to option for payments, as they guarantee a speedy and secure transaction with their well-developed banking networks both domestically and globally.

An Export Credit Insurance policy can provide assurance for export transactions, protecting against any potential customer insolvency. Allianz Trade's global network of risk offices will continuously monitor customers' financial health and assign each a designated credit limit that clients may transact with and apply for reimbursement should anything unexpected arise. Standby Letters of Credit serve as dependable guarantees and are regarded as symbols of good faith since they can be triggered to pay if the debtor falls short in fulfilling their contractual obligation. Banks guarantee the credit quality and repayment capabilities, making them an effective 'payment of last resort.' Additionally, securing an irrevocable and confirmed Documentary Letter of Credit (in which a debtor is responsible for providing a specified number of funds to the beneficiary by means of their bank after certain conditions are met) can be done quickly from local banks.

The financial sector has made remarkable advancements, so much so that duplicata, the traditional form of bill used in business-to-business dealings is being replaced by bank bills or payment slips (boleto bancario).

Typically, bank guarantees can be attained but may remain costly depending on the issuing body. In accordance with legal requirements, advance payments of up to a maximum of 100% of the invoice are accepted.

Establishing the Fundamental Corporate Building Blocks

Depending on the legal structure used, liability for business debts can differ. The following outlines how liabilities are assigned: Corporations (Sociedade Anônima, SA) and Limited Companies (Limitadas, LTDA) are commonly used in the formation of subsidiaries and joint ventures. They may be wholly owned by domestic or international people/companies with no minimum capital restrictions (though there could be certain prohibitions for protected industries). Limitadas must have at least two shareholders; individual LLCs can also be created if necessary. Moreover, Mixed-Capital Companies enable private backers to collaborate with state agencies (which take charge).

The debt collection process in Brazil

The process of debt collection in Brazil is usually carried out through a series of steps.

The image below explains the steps we take to collect debt in Brazil:


1 Upload your claim:

If you want to get help recovering your debt, you will find a debt collection partner and upload your claim to their website. If you use Debitura, we will give you 3 quotes from local partners in the South America country that is relevant to your case. This is free - no strings attached.

2 Amicable collection:

Debitura will try to contact the person who owes you money using email, SMS, and other ways of communication available in that person's country. The goal is to get the debtor to pay what they owe or at least start making payments on the debt. If Debitura is successful in getting the debtor to pay, then you will only have to pay a small success fee. Therefore, there is no risk in using Debitura for amicable collections!

3 Evaluation:

If the person you lent money to has not given it back after you talked to them, it is time to decide what to do next. We will look at how much money you are owed, the chance of getting paid back, and other things to help you decide what to do. There are three typical next steps:

A: Surveillance:

If your claim is for a small amount of money, it might not be worth it to take legal action. In this case, we can do something called "debt surveillance." This means that we will keep trying to contact the person you owe money to and try to reach an agreement.

B: Legal collections:

It is a good idea to go through legal procedures when you want to claim for something big. The way of doing it will vary depending on the type and amount of what you are claiming for. Typically, it takes around 1 to 1 and a half year to finish.

C: Debt enforcement:

If the person you are trying to get money from agrees that you are owed money, or if there is a court order, you can go to the bailiff's court.

At Debitura, we are happy to be at your service in Brazil and help you with every step of the way.

"Thanks to Debitura, our business was able to recover a significant amount of unpaid debts in Brazil. Their efficient and professional approach in debt collection Brazil helped us gain financial stability once again. Highly recommend their services!"
Mariana Silva - Accounts Receivable Coordinator.
"Thanks to Debitura, our debt recovery in Brazil was made easy and efficient. They provided us with a reliable lawyer, at a competitive rate. I highly recommend their service to anyone in need."
Patricia da Silva - Senior Accounts Receivable Analyst
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 Brazil

Debitura is proud to offer a 100% risk-free and highly effective process for Amicable collections. Just submit your claim, and our team will be on it in less than 24 hours!

We'll contact the debtor through every channel accessible in Brazil - emails, SMS messages, letters, calls & social media so you can rest easy knowing that we've got this covered.

Through this process, we aim to:

A) Secure full payment from the debtor or 
B) Obtain acknowledgement of debt and initiate a payments arrangement.

If the debtor contests your statement, it is not recommended to pursue an amicable resolution but instead begin directly with legal collections.

Late payment interest

According to the Civil Code, late payment interest may be charged from the day following an overdue amount. Yet in reality, it is better practice for both parties to reach a contractual agreement regarding such fees beforehand. Traders within this region are accustomed to paying these interests (as they commonly occur), and often use them as leverage when seeking prompt payments.

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
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Debt enforcement in Brazil

If you have obtained a written confirmation of your claim from the debtor or court order, Brazil's bailiff court can enforce it. Leveraging this legally-binding power is valuable for obtaining resolution and satisfaction of any claims in Brazil.

Brazilian courts are responsible for enforcing judgments once they become final and no further appeals can be made. To expedite the enforcement process, reforms enacted in 2005 and 2006 created a mandate that allows creditors to attach assets of debtors failing to abide by a final order within three days. Additionally, 'Penhora on-line' instrument permits any amount present in the debtor's account to be frozen until judgment is enforced. These measures have decreased enforcement periods significantly and enable swift response times when it comes to collecting owed payments. Although it can be a daunting undertaking, executing this practice is essential as there are few options available to track assets in Brazil.

The cost and procedures for your case may differ, so to get the best, most accurate quotes tailored specifically to you - simply upload your details on Debitura. Within just 24 hours you'll receive three competitive quotes!

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 Brazil

If your debtor does not have the means to pay his debts, you can initiate insolvency proceedings as a final resort. The aim of this process is to liquidate the debtors' possessions and divide them amongst creditors based on their prioritizations. This procedure offers an effective way for all parties involved to recoup their losses in order to move forward and start anew.

  • The law allows for out-of-court restructuring proceedings, which give the debtor a chance to negotiate a restructuring plan informally and confidentially with its creditors, without involving courts.
  • The Reorganization Plan is presented within 60 days of the judge's approval of the judicial reorganization processing. It details the creditors and the way the company can pay (discounts, instalments, etc.). This plan will be voted on at the Creditors' Meeting.
  • A stay period of 180 days is granted initially. During this suspension period, most debts before recovery cannot be collected. And those assets that are necessary for the maintenance of the company cannot be taken during the course of the judicial reorganization.
  • At the Creditors' General Assembly, when the qualifications and judgment of the challenges to t he amounts and credit legitimacy have already taken place , there is a vote on the Recovery Plan. If such a vote by the creditors is positive ,the judge ratifies it. Failing to do so ,the parties may shift to a bankruptcy procedure.

Brazil country risk profile

We have examined Brazil's critical financial data and extrapolated a risk assessment. You can use this analysis to evaluate your payment terms and manage your risk when trading with customers in Brazil.

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

The analysis is concluding that the risk of doing business in Brazil 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 Brazil 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:
4
Economic Risk:
4
Economic Risk:
4
Economic Risk:
4
Economic Risk:
4
Economic Risk:
4
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:
3
Commercial Risk:
3
Commercial Risk:
3
Commercial Risk:
3
Financing Risk:
2
Financing Risk:
2
Financing Risk:
2
Financing Risk:
2

The economic risk in Brazil

Economic risk in Brazil is medium-high (4 out of 6). An economic risk of 4 out of 6 is pretty average in South America.

GDP and economic growth are critical drivers for economic risk.
The GDP of Brazil is 1608.98 bn. USD (2021), growing by 4.62% per year.

In terms of the size of its economy, Brazil ranks #13 out of 183 countries and has a large economy.

Looking at the growth rate, it is ranked #87 out of 183 countries and is therefore considered an excellent growing economy.

GDP per capita is 7519 USD, ranking Brazil number #77 out of 183 countries. This means the purchasing power of citizens in Brazil is average compared to the rest of the world.

You can see a more throughout picture of GDP and economic growth in Brazil in the table below:

GDP and economic growthLatest value
Economic growth: the rate of change of real GDP4.62%
Gross Domestic Product, billions of U.S. dollars1608.98
GDP per capita, current U.S. dollars7518.83
GDP per capita, Purchasing Power Parity14615.05

Another critical driver for the economic risk score is the inflation rate and the interest rates. You can see a more throughout picture of monetary key performance indicators in Brazil in the table below:

Monetary KPI'sLatest value
Inflation: percent change in the Consumer Price Index8.3%
Business credit interest rate, percent30.02%

The inflation in Brazil was 8.3% in 2021 which is considered a high inflation rate.

Businesses has an interest rate which is 30.02%.

The business environment risk in Brazil

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

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

Economic freedom indexLatest value
Property rights index (0-100)55
Freedom from corruption index (0-100)48
Fiscal freedom index (0-100)70
Business freedom index (0-100)58
Monetary freedom index (0-100)77.8
Trade freedom index (0-100)65
Investment freedom index (0-100)60
Financial freedom index (0-100)50
Economic freedom, overall index (0-100)53

In the above table, you can see, the property rights index is 55 in Brazil, which is considered quite low in South America.

The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 58 in Brazil, a quite average score for a country in South America.

Brazil's overall economic freedom index is 53 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.

The political risk in Brazil

The political risk in Brazil is medium-high, with a score of 4/6. This is a pretty average political risk score in South America.

The governance and political stability indicators are important drivers for political risk. An overview of Brazil can be seen in the graphs below:

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 Brazil, the rule of law index is at -0.28 points, with the score going from -2.5 (weak) to 2.5 (strong). Brazil has, therefore, a low rule of law index, which means it often is very difficult 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 very weak control of corruption, the very weak political stability index, and the very large shadow economy that is 35.22% of Brazil's GDP.

The commercial risk in Brazil

In Brazil, the commercial risk score is 3/4, which in our model is a medium score. This medium commercial risk score is relatively high compared to the average in South America.

The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Brazil in the table below:

International trade and investment Latest value
Exports of goods and services as percent of GDP20.1%
Exports of goods and services, annual growth5.79%
Imports of goods and services as percent of GDP19.08%
Trade balance as percent of GDP1.02
Trade balance, billion USD19.25
Foreign exchange reserves, billion currency units362.21

Brazil has a total of foreign exchange reserves of 362.21 bn. USD.

Brazil has a positive trade balance of 1.02% of GDP. This means that Brazil imports fewer goods and services than the country exports.

The annual growth of exports of goods and services has been growing 5.79% annually - now 20.1% of GDP. Import of goods and services represents 19.08% of the GDP in Brazil.

The financing risk in Brazil

We have calculated the financing risk to be 2/4, which equals a low risk. A low financing risk score is pretty average for countries in South America.

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

Banking system efficiency and stabilityLatest value
Interest rates on bank credit to the private sector30.02%
Real interest rate: Bank lending rate minus inflation17.03%
Index of legal rights for creditors and borrowers (0 = weak to 12 = strong)2
Credit information sharing index, 0 (low) - 8 (high)8

In Brazil, the credit information sharing index is 8 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 Brazil is high.

This makes it easy for you to understand the credit risk of your counterpart in Brazil. You should therefore be able to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.

Your legal rights as a creditor (and as a borrower) are 2 out of 12 and, therefore, very weak.

The low financing risk for creditors also impacts the high interest rate in the private sector of 30.02%.

Debt Collection in Brazil: Frequently Asked Questions

How does debt collection work in Brazil?

Debt collection in Brazil involves identifying the creditor who issued the invoice and the debtor owing the debt. Options for collections include first-party collections managed by the creditor or third-party collections through an external entity. Because legal action can be expensive and time-consuming with no guarantee of success, amicable resolutions or professional debt collection services are recommended. Late payments are inevitable in Brazil, and average DSO is 70 days, with no publicly available data for international debt. Debt collection involves a series of steps, including upload, amicable collection, evaluation, surveillance, legal collections, and debt enforcement.

What is the debt collection process in Brazil?

The debt collection process in Brazil involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection includes uploading your claim to a debt collection partner's website. Legal debt collection may take up to 1.5 years and includes various legal procedures to claim large amounts. Debt enforcement involves going to the bailiff's court once there is a court order or agreement with the debtor. Debitura provides debt collection services in Brazil and can assist you throughout all these steps.

What legal options exist for debt collection in Brazil?

Legal options for debt collection in Brazil include civil lawsuits for disputed debts, debt enforcement through a payment order, and insolvency proceedings. Local lawyers are necessary for legal action, while insolvency proceedings can liquidate a debtor's possessions to pay off creditors. The Brazilian legal system operates on both federal and state levels, and navigating it can be challenging. Debitura provides a way to compare quotes from multiple attorneys for the most competitive legal fees. The Reorganization Plan is presented within 60 days of the judge's approval of the judicial reorganization processing.

How much does debt collection cost in Brazil?

The cost of debt collection in Brazil varies depending on the type of case. At Debitura, we offer a no-cure-no-pay model for pre-legal collection with a success fee of 10-20%. For legal actions, the price depends on your specific case and desired actions. We can provide you with 3 quotes from the best debt collection lawyers in Brazil.

How long does debt collection take in Brazil?

The length of debt collection in Brazil depends on the complexity of the case and the cooperation of the debtor. If the case can be resolved in the pre-legal phase, it usually takes 3-6 months. However, if legal actions are required, it takes 12-18 months. The duration of the process varies from case to case, and our team strives to provide efficient and effective debt collection services to our clients.