Top-Rated Debt Collection Agency in Guatemala
Fast and reliable debt collection in Guatemala - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
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In Guatemala, recovering your debt can be easily done.
Debitura specializes in debt recovery services in Guatemala. Our team of seasoned professionals provides a full suite of services such as accounts receivables management, debt collection notices, pre-legal and legal debt collection, as well as enforcement court proceedings. With our in-depth knowledge of debt collection laws and regulations in Guatemala, we offer businesses effective and efficient solutions to reclaim their overdue debts.
We provide unwavering support throughout the entire process.
Tailored debt recovery plan
We have more than 500 experts who specialize in international debt collection.
Our debt collection services boast a success rate of 87% while maintaining the lowest cost in the industry.
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At Merida y Asociados we offer legal services in Civil Litigation, Arbitration, and Debt Recovery.
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The ultimate guide about debt collection in Guatemala
Do you have money that you are owed from a business or customer in Guatemala? We can help you! We have helped hundreds of other businesses get their money back from people who owe them. It can be very difficult to get money back from someone in another country, but we know how to do it.
At Debitura, we put people first. This means that we try to get your money back while still having a good relationship with the person who owes you money. Our strategic public relations efforts are fair, but firm-which means that we make sure your reputation is our top priority! If you want to understand the whole process of Guatemalan debt collection, keep reading this guide. If you would rather work with a local law firm that specializes in debt recovery in Guatemala, we can help you with that too.
At Debitura, we provide an easy way to collect your debt in Guatemala and other countries. To get started, upload your claim today. We will review your case and provide you with 3 free quotes from local debt collection lawyers in Guatemala within 24 hours. We use a people-oriented approach and the latest tech-driven solutions to get results and manage contact better. This combined method gets the results you need while still allowing you to keep good relationships with customers. We also have a network of debt collectors, attorneys, suppliers, and vendors that we work with regularly. We appreciate all of these relationships and know that they are important in helping us get the job done.
Upload claim
Begin the process of debt collection in Guatemala today, free of charge. In only 2 minutes, create a free profile and submit your case by uploading it.
Pre-legal
Our pre-legal recovery process will be applied for the initial 3 months to attempt to retrieve your claim. Our method is reliable and no-cure-no-pay, meaning if we don't succeed, there won't be any charge to you.
Legal
"If your claim remains unpaid during the pre-legal phase, we offer you three quotes from our nearby debt collection attorneys."
24/7 updates
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Guatemala
Do you have trouble getting paid by your Guatemalan customers? We can help. When somebody owes a debt, we call them the debtor. The person they owe the money to is called the creditor. If the creditor collects the debt themselves, we call it first-party collection. If the creditor hires someone else to collect the debt, we call it third-party collections.
The debt collection process in Guatemala
The debt collection process in Guatemala is usually done in more than one step.
The image below explains our standard process for collecting debt in Guatemala.
1 Upload your claim:
If you want someone to help you get your money back, you need to find a debt collection partner. This is a person or company who will try to get the money for you. You can find a partner on the Debitura website. We will give you 3 quotes from local partners in the North America country where your case is located. This service is free - there is no charge.
2 Amicable collection:
The collection process usually starts with sending some friendly reminders to the person who owes you money. This is called a "campaign." You can do this over email, SMS, or even a letter. The goal is to get the debtor to either pay the money they owe, or at least acknowledge the debt and start a payment plan. Debitura offers a no-cure-no-pay solution for amicable collection, which means that you only have to pay a small success fee if we're able to collect the debt successfully. Therefore, amicable collections with Debitura are 100% risk-free!
3 Evaluation:
If the person you are owed money from has not paid you back after you have 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 is the best thing to do. There are three common things people do next:
A: Surveillance:
If your claim is for less than 2,000-5,000 euros, it is often not worth it to take any more legal action. In this case, we recommend "debt surveillance." This means that we will keep trying to talk to your debtor and try to agree on a payment plan.
B: Legal collections:
It's a good idea to go through a legal process if you're making a big claim. The steps you need to follow will depend on the kind of claim you're making and how big it is. Usually, it takes around one and a half to two years to finish the process.
C: Debt enforcement:
If the person you are claiming money from agrees that you are owed money, or if you have a court order, you can ask the bailiff to help you get the money.
Debitura can help you with all three steps of the process in Guatemala.
Amicable collection in Guatemala
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 try to contact your debtor in Guatemala using different ways, including email, text messages, letters, phone calls, and social media.
The goal of this is to:
A) Get the person who owes you money to pay the whole amount.
B) Get the person who owes you money to say that they owe you money and start paying it back in small amounts.
If the person you are trying to get money from does not agree that they owe you money, you cannot try to resolve this problem without going through the legal system.
Get started with
amicable debt collection
Upload your claim and get started with our 100% no-cure-no-pay collection solution.
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Legal collection in Guatemala
If we have not been able to collect your debt during the first phase or the debtor disputes your claim, we will provide you with 3 free quotes from local debt collection attorneys. In the legal phase, our local attorney will reach out to your debtor and try to negotiate a payment. Our partners can also go to court and get a payment order from the legal system in Guatemala. This payment order can then be used to enforce your claim in enforcement court.
Get started with
legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in Guatemala
If you have a letter from the debtor that says they will pay you, or if there is a court order, you can go to the bailiff's court in Guatemala to get your money.
The process and how much it will cost varies depending on your situation. You can upload your case onto Debitura to get 3 different quotes from within 24 hours.
Get started with
debt enforcement
Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in Guatemala
The final stage you can initiate if your debtor cannot pay his debts is an insolvency procedure. The goal of this procedure is to get rid of the debtor's assets and give them to the creditors following the debt priorities.
Our analysis concludes that the risk of doing business in Guatemala is medium-low. Based on this medium-low 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 Guatemala well. If possible, provide a short credit period or even better upfront payment. The medium-low risk score is based on the following factors:
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The economic risk in Guatemala
Our analysis shows that the economic risk in Guatemala is medium (3 out of 6). An economic risk of 3 out of 6 is relatively low in North America.
GDP and economic growth are critical drivers for economic risk.
The GDP of Guatemala is 85,99 bn. USD (2021), growing by 7,53% per year.
In terms of the size of its economy, Guatemala ranks #64 out of 183 countries and has a medium-sized economy.
In terms of growth rate, it is ranked #36 out of 183 countries and is therefore considered a fast-growing economy.
GDP per capita is 5026 USD, ranking Guatemala number #96 out of 183 countries. This means the purchasing power of citizens in Guatemala is average compared to the rest of the world.
You can see a more throughout picture of GDP and economic growth in Guatemala in the table below:
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 Guatemala in the table below:
The inflation in Guatemala was 4,3% in 2021 which is considered a medium inflation rate.
Businesses has an interest rate which is 12,19%.
The business environment risk in Guatemala
Our analysis shows that the business environment risk in Guatemala is medium-high (4 out of 6), which is a relatively high risk score in North America.
Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Guatemala in the table below:
As you can see in the table, the property rights index is 43 in Guatemala, which is considered low in North America.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 62 in Guatemala, a pretty average score for a country in North America.
Guatemala's overall economic freedom index is 64 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Guatemala
The political risk in Guatemala is medium-high, with a score of 4/6. This is a relatively high political risk score in North America.
The governance and political stability indicators are vital drivers for political risk. An overview of Guatemala can be seen in the table 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 trading with businesses in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Guatemala, the rule of law index is at -1,09 points, with the score going from -2.5 (weak) to 2.5 (strong). Guatemala 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 very weak control of corruption, the very weak political stability index, and the very large shadow economy that is 46,88% of Guatemala's GDP.
The commercial risk in Guatemala
In Guatemala, the commercial risk score is 2/4, which in our model is a low score. This low commercial risk score is relatively low compared to the average in North America.
The commercial risk is influenced by a country's international trade relationships. You can see some of the key facts for Guatemala in the table below:
Guatemala has a foreign exchange reserve of 20.93 bn. USD.
Guatemala has a negative trade balance of -12,48% of GDP. What this means is that Guatemala imports more goods and services than the country exports.
The annual growth of exports of goods and services has been growing 12,42% annually - now 18,49% of GDP. Import of goods and services represents 30,97% of the GDP in Guatemala.
The financing risk in Guatemala
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 North America.
The country's banking system, efficiency, and stability influence the financing risk. Additional facts and info can be found for Guatemala in the table below:
In Guatemala, the credit information sharing index is 8 on a scale from 0 (low) to 8 (high). This means the accessibility and quality of credit information available in Guatemala is high.
This makes it easy for you to understand the credit risk of your counterpart in Guatemala. 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 9 out of 12 and, therefore, strong.
The low financing risk for creditors also impacts the high interest rate in the private sector of 12,19%.
Debt Collection in Guatemala: Frequently Asked Questions
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The debt collection process in Guatemala usually involves multiple steps. If someone owes you money, you can either collect it yourself or hire a third-party debt collection partner. The process starts with an amicable campaign, followed by an evaluation of your options. Depending on your claim size, you can either proceed with debt surveillance, legal collections, or debt enforcement. Debitura can assist you with all three options in Guatemala. Our amicable services are 100% risk-free with a no-cure-no-pay solution.
The debt collection process in Guatemala is typically done in three steps: pre-legal collection, legal debt collection, and debt enforcement. The pre-legal collection involves sending friendly reminders to the debtor to encourage payment or create a payment plan. If unsuccessful, legal action may be taken, which takes about one and a half to two years to complete. If the debtor acknowledges the debt, debt enforcement may be carried out with the help of a bailiff. Debitura can assist with all three steps of the process in Guatemala.
In Guatemala, if a debt is disputed, a civil lawsuit is required for legal collection. Additionally, debt enforcement and insolvency proceedings are available options. Please note that legal actions require the assistance of a local lawyer. Our partners provide 3 free quotes from local debt collection attorneys and can negotiate with debtors, obtain payment orders, and initiate insolvency proceedings if necessary.
Debt collection fees in Guatemala vary based on your case and desired legal actions. At Debitura, we offer a no-cure-no-pay model for pre-legal collection with a success fee between 10-20%. For legal actions, we can provide you with 3 quotes from the best debt collection lawyers in Guatemala. Contact us today to learn more.
The length of debt collection in Guatemala can vary depending on the debtor and the case. If the case can be resolved in the pre-legal phase, the process generally takes 3-6 months. However, if legal actions are necessary, the debt collection process typically takes longer, averaging around 12-18 months. The timelines can also be affected by factors like debtor responsiveness, unpredictability of courts, and location of the debtor.
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