Top-Rated Debt Collection Agency in Ireland
Fast and reliable debt collection in Ireland - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
Recovering your debt in Ireland is easiest through this way.
Debitura is an expert in debt recovery in Ireland, providing a wide range of services to efficiently manage accounts receivables, issue debt collection notices, and undertake both pre-legal and legal debt collection processes. Our team of experienced professionals is well-versed in the Irish debt collection laws and regulations, ensuring that we offer effective solutions to help businesses recover outstanding debts.
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We have more than 500 experts who specialize in international debt collection.
Our debt collection services boast a remarkable success rate of 87% while also being offered at the most affordable cost.
The ultimate guide about debt collection in Ireland
If you have money that you are owed from a business or customer in Ireland, then we can help you! We have helped hundreds of other businesses get their money back, and we can help you too.
Collecting a debt in Ireland can be difficult because of language and cultural differences, different laws, and the distance.
If you use a collection agency that knows the laws and customs of the country where the person you owe money to lives, it will be easier to get your money back.
At Debitura, we always put people first. We try to get your money back while still keeping a good relationship with the person who owes you money. Our PR efforts are always fair but firm- making sure your reputation is our number one priority! If you want to learn more about how to collect debt yourself, keep reading this guide. If you would rather work with a local law firm that specializes in debt recovery in Ireland, we can help you with that too.
At Debitura, we provide an easy way to collect your debt in Ireland and +192 other countries. You can start today by uploading your claim. We will assess your case and provide you with 3 free quotes from local debt collection lawyers in Ireland within 24 hours. We use both people and technology to get the results you need while still preserving customer relationships. We have a lot of friends who help us with our work. We have debt collectors, attorneys, suppliers and vendors. They help us do our job. We like all of them, no matter how big or small they are.
Begin the debt collection process in Ireland now at no cost. Simply create a free profile and upload your case within just 2 minutes.
We will attempt to collect your claim through our proven pre-legal recovery process for the first 3 months, with a 100% no-cure-no-pay policy.
In case your claim remains unpaid during the pre-legal phase, we'll send you 3 quotes from our local debt collection attorneys.
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Ireland
Do you have a hard time getting people to pay you back in Ireland? Do not worry; we will make it easy for you to get paid by your Irish customers.
The person who owes the debt is called "the debtor." The person who issued the debt or invoice is called "the creditor." If the original creditor collects the debt himself, this is called "first-party collection." If the creditor outsources the collection process to a third party, this is called "third-party collections."
- DSO in Ireland is still around 50 days. This means that small and medium businesses in Ireland have to wait an average of 60 days to get paid, with 24% of them waiting up to 120 days.
- Legal action can be very costly and take a long time. Often, there is not much of a reward. A good way to figure out who will pay and who will not is to have friendly negotiations with debt-collection agencies.
Days Sales Outstanding (DSO)
In Ireland, on average, people normally pay their debts within 50 days (2016 figures). But some people do not pay on time. They are not in a hurry to pay. And they know how to wait to pay so it costs more money to make them pay.
Common payment types in Ireland
The most common ways to pay for something are:
- A swift bank transfer is a type of bank transfer that is commonly used in Ireland because it is fast and secure. Additionally, more and more banks are beginning to support this type of transfer, both domestically and internationally.
- Checks usually do not work because the bank will not pay for them if they are not good. This means that the person who wrote the check may not have enough money to pay for it. It is common to ask for money upfront or a guarantee from the bank when using checks.
Main corporate structures
Business debts are the responsibility of the business, not the owner. The legal structure of the business determines who is responsible for business debts.
- Businesses which don't need a commercial organization may be run by one person who is registered as a Sole Trader. Two or more people may also decide to share ownership and responsibilities through Partnerships (as regulated under the Partnership Act of 1890), which means the partners may be held responsible for the actions of other partners (while being able to raise more money). Limited Partnerships (as regulated under the Partnership Act of 1907) may offer limited liability to the partners instead.
- Incorporated entities may also be used. Private Limited Companies are popular because the shareholders (up to 99 people) are only responsible for the company’s debts related to their individual contribution, and there is no minimum amount of money required. Larger businesses would rather be set up through a Public Limited Company, which requires a minimum capital of approx EUR 38,000. In this type of company, the shares are tradable and the shareholders are only responsible for the value of their share(s), while debts may only be recuperated from the company’s assets.
- Foreign investors often choose to settle in Ireland through a Branch entity. This is a company that is independent from the parent company and can do business in Ireland.
The debt collection process in Ireland
The debt collection process in Ireland usually happens in a few steps. The picture shows the standard way to collect debt in Ireland:
1 Upload your claim:
If you want someone to help you get your money back, you will need to find a debt collection partner. This is a person or company who helps people get money that they are owed. You can upload your claim (a request for money) onto their website. Debitura is a website that helps you find debt collection partners in Europe. We will provide you with 3 quotes (estimates of how much it will cost) from local partners in the European country relevant to your case. This service is free - which means you do not have to pay us anything.
2 Amicable collection:
Typically, we try to contact the person who owes you money and remind them that they need to pay you back. We will use email, text messages, letters, and any other available methods of communication. Our goal is to get the debtor to either pay the debt in full or agree to a payment plan. If we are successful in collecting the debt, you will only have to pay a small success fee. If we are not successful, you don't have to pay anything!
If you have not received payment from the person you lent money to, it is time to decide what to do next. We will look at the size of your claim, the chances that you will get paid back, and other factors to help you make the best decision. There are three typical next steps:
If the amount of money you are owed is below 2,000-5,000 Euros, it is often not worth it to take more legal action. In this case, we recommend "debt surveillance." This means we will keep trying to contact the person who owes you money and try to reach an agreement about payment.
B: Legal collections:
It's a good idea to start a special set of steps called a "legal process" if you are trying to get a lot of money from someone. The steps you need to take will be different depending on what you are asking for and how much you are asking for. Usually, it will take between 1 and 1.5 years to finish all the steps.
C: Debt enforcement:
If the person who owes you money has said that they owe you money, or if there is a court order, you can go to the bailiff's court.
At Debitura, we can help you with all three steps in Ireland.
Amicable collection in Ireland
At Debitura, we have a process for getting your money back that is 100% risk-free and very efficient. All you need to do is submit your claim, and we will start working on it within 24 hours.
We will try to contact your debtor through different ways, like email, text messages, letters, phone calls, and social media.
The goal of this process is to either:
A) get the person who owes money to pay the full amount, or
B) get them to agree that they owe the money and start a plan to pay it back.
If the person you are trying to get money from has disputed your claim, you cannot start by trying to resolve it peacefully. You must start by taking legal action.
Late Payment Interest
Directive 2011/7/EU, which says that payments must be made within 60 days in the EU, has been put into law through the Late Payment of Commercial Debts Regulations of 2013. The transposing law is in line with the directive, but it allows for more flexibility than other EU Member States. Invoices must be paid within 30 days after the supplier has provided the goods or service, unless the buyer and creditor agree on a different time frame. If you don't pay on time, you may have to pay interest. This is called a 'substantial remedy.' You may have to pay this interest because of what the contract says or because the Bank of England's base rate increased by 8 percentage points.
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amicable debt collection
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Legal collection in Ireland
If the person you owe money to has not paid you back, or if they say they do not owe you money, we will give you 3 free quotes from our local debt collection attorneys. Once it becomes a legal issue, our local attorney will talk to the person you say owes you money and try to get them to agree on a payment plan. Our partners can also go to court and get an official document that says the person owes you money. This document can be used to make the person pay you back via enforcement court.
Legal action starts when friendly methods to collect the debt, like asking for payment, have failed. A claim is filed with the court that has the power to hear the case (depending on how much money is owed). The debtor must be given notice of the lawsuit within 21 days. If the debt is more than EUR 1,270, then the debtor must be given 21 days to pay, propose an arrangement or bring a defence. If you do not pay your debt within this time limit, the law says you cannot pay your debts (Section 214 of the Companies Act 1963/2009 as amended). This means the creditor can ask the court for a default judgment.
If the claim is undisputed, it is possible to request a fast-track summary judgment from the competent court. When the debtor company has assets in other EU Member States, a European Payment Order procedure facilitating the recovery of undisputed debts may also be triggered. In this case, the demanding party may request a domestic court to issue an Order to Pay which will then be enforceable in all European Union countries without exequatur proceedings.
If someone disagrees with a claim, both sides explain their arguments to a judge. The judge then decides what to do. The courts usually award remedies in the form of compensatory and punitive damages, specific performance, declarations, injunctions, etc.
In Ireland, the court system is based on Common Law. This means that the decisions made by the courts can create new laws and bind lower courts. There are 23 District Courts in Ireland, which deal with minor cases up to EUR 15,000. There are also 8 Circuit Courts, which hear disputes up to EUR 75,000 and appeals against decisions made by District Courts. Finally, there is a High Court, which hears cases over EUR 75,000 and decides on appeals from Circuit Court decisions. The Commercial Court is a court that helps people with problems about money and intellectual property. If the problem is worth more than one million Euros, then the Commercial Court can help. The Supreme Court is the court that people can go to if they do not agree with the decision of the Commercial Court.
The amount of money you will need to pay a lawyer depends on how complicated your case is and how big your claim is. To get the best price, we recommend that you ask different lawyers for their prices so that you can compare them. You can do this easily by using Debitura.
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legal debt collection
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Debt enforcement in Ireland
If you have gotten written proof from the person you are owed money from, or a court order, you can go to the bailiff's court in Ireland to get your money.
A judgment means that the person must pay the money they owe. If they don't pay, you can ask the District Court to have the sheriff take and sell their things. This may take some time. The sheriff may ask for money from the debtor every month instead of all at once. Creditors can get their debt paid by asking the court for a Garnishee Order. This means that the court will order a third party who owes money to the debtor to pay the creditor instead. If the creditor can show that the debtor will not pay the debt, the judge may also grant a Committal Order.When someone owes you money, you can try to get them to pay by threatening to take their stuff. But another way to get them to pay is by registering the judgement in the Trade Gazettes. This will cost a little bit, but it will let everyone know that the person owes you money. There is a danger that the person won't be able to keep their business going if other people find out, but it is still a good way to try and get your money back.
The way to do this and how much it will cost depends on your situation. You can upload your case onto Debitura. They will give you 3 specific quotes based on what you need within 24 hours.
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Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in Ireland
If your debtor cannot pay you back, the last thing you can do is start an insolvency procedure. The goal of this is to sell the debtor's things and give the money to the people he or she owes.
- Out-of-court proceedings may take place, but all creditors must agree unanimously.
- To bind the parties, proposals from informal out-of-court negotiations must be accepted by each class of creditor (by a majority in number and value) and confirmed by the court.
- Schemes of Arrangement are considered under the Companies Act (Section 201), however it is necessary to obtain approval from a majority representing 75% in value of each class of creditor.
- Liquidation is the terminal process which sees the selling of the assets of the debtor company upon request of debtor, creditor, or court. Once petition for liquidation has been admitted by court, a liquidator communicates winding up order to Companies Registration Office and requests all creditors file their claims with court.
European Late Payment Directive in Ireland
Ireland is part of the European Union, which means that the law about fighting late payments in Europe applies here too.
The directive includes the following main provisions:
- Public authorities cannot require that people pay in more than 30 days.
- Private businesses cannot require payment terms of more than 60 days.
- If the person you lent money to has a business, you can charge them an extra €40 for not paying on time.
- The interest rates for late payments must be at least 8% higher than the European Central Banks reference rate.
The Danish government cannot make rules that would be bad for creditors. These rules come from the European Union.
Credit risk and payment behaviour in Ireland
- 28% of respondents in Ireland reported that maintaining adequate cash flow is one of the biggest challenges they will be facing in 2015, compared to 18% in Western Europe.
- 54% of the value of domestic B2B sales and 50.5% of foreign B2B sales are transacted on credit terms, both higher than the averages for Western Europe.
- The average payment term set by Irish respondents for domestic B2B customers is 30 days, four days shorter than the average term set in Western Europe.
- 43.3% of the total value of domestic B2B invoices remain unpaid after due date, slightly above that for Western Europe (40.2%).
- 1.7% of receivables were uncollectable, above the average for Western Europe (1 .2%).
Our analysis has shown that the risk of doing business in Ireland is low. Based on this low score, You can feel reasonably confident that you will be able to get paid when trading with customers in Ireland. Nonetheless, we always recommend doing a specific credit analysis on an individual customer basis before offering any credit. The low risk score is based on the following factors:
The economic risk in Ireland
Our conclusion based on the economic risk factors, is that the economic risk in Ireland is very low (1 out of 6). An economic risk of 1 out of 6 is low in Europe.
GDP and economic growth are critical drivers for economic risk.
The GDP of Ireland is 498,56 bn. USD (2021), growing by 13,48% per year.
In terms of the size of its economy, Ireland ranks #26 out of 183 countries and has a large economy.
In terms of growth rate, it is ranked #8 out of 183 countries and is therefore considered a fast-growing economy.
GDP per capita is 99152 USD, ranking Ireland number #3 out of 183 countries. This means the purchasing power of citizens in Ireland is high compared to the rest of the world.
You can see a more detailed picture of GDP and economic growth in Ireland 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 detailed picture of monetary KPIs in Ireland in the table below:
The inflation in Ireland was 2,4% in 2021 which is considered a low inflation rate.
The business environment risk in Ireland
Our analysis shows that the business environment risk in Ireland is very low (1 out of 6), which is a relatively low risk score in Europe.
Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Ireland in the table below:
In the above table, you can see, the property rights index is 86 in Ireland, which is considered quite good in Europe.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 82 in Ireland, a quite good score for a country in Europe.
Ireland's overall economic freedom index is 81 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Ireland
The political risk in Ireland is very low, with a score of 1/6. This is a low political risk score in Europe.
The governance and political stability indicators are important drivers for political risk. An overview of Ireland 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 doing business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Ireland, the rule of law index is at 1,53 points, with the score going from -2.5 (weak) to 2.5 (strong). Ireland has, therefore, a very high rule of law index, which means you have a very good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.
Other drivers for the very low political risks are the strong control of corruption, the average political stability index, and the small shadow economy that is 9,58% of Ireland's GDP.
The commercial risk in Ireland
In Ireland, 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 Europe.
The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Ireland in the table below:
Ireland has a total of foreign exchange reserves of 13.25 bn. USD.
Ireland has a positive trade balance of 40,29% of GDP. What this means is that Ireland imports fewer goods and services than the country exports.
The annual growth of exports of goods and services has been growing 16,61% annually - now 134,84% of GDP. Import of goods and services represents 94,56% of the GDP in Ireland.
The financing risk in Ireland
We have calculated the financing risk to be 1/4, which equals a very low risk. A very low financing risk score is relatively low for countries in Europe.
The country's banking system, efficiency, and stability influence the financing risk. You can find the extra information for Ireland in the table below:
In Ireland, the credit information sharing index is 7 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 Ireland is medium-high.
This makes it easy for you to understand the credit risk of your counterpart in Ireland. You would 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 7 out of 12 and, therefore, medium.
Debt Collection in Ireland: Commonly Asked Questions (FAQ)
The debt collection process in Ireland involves uploading your claim onto a debt collection partner's website, who will then attempt to contact the debtor and collect the debt through amicable means. If unsuccessful, the next step is to evaluate your options, which may include debt surveillance, legal collections, or debt enforcement through the bailiff's court. Legal action can be costly and time-consuming in Ireland, and negotiations with debt collection agencies can be a helpful alternative. Days Sales Outstanding in Ireland is around 50 days, meaning businesses may have to wait up to 120 days to get paid.
The debt collection process in Ireland typically involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection involves contacting the debtor and attempting to reach an agreement for repayment. Legal debt collection involves filing a legal process if the amount owed is significant. Debt enforcement involves seeking the help of the bailiff's court if there is a court order or admission of debt. At Debitura, we can assist you with all three steps in Ireland.
Legal options for debt collection in Ireland include the filing of a civil lawsuit if the debt is disputed. Debt enforcement and insolvency proceedings are also available options. Legal actions require a local lawyer. The courts in Ireland are based on Common Law and consist of the District Courts, Circuit Courts, High Court, Commercial Court, and Supreme Court. The amount of money needed to pay a lawyer depends on the complexity of the case and the claim size. Insolvency proceedings involve selling the debtor's assets to pay the creditors. Different procedures exist such as out-of-court negotiations, schemes of arrangement, and liquidation.
Debt collection costs in Ireland vary depending on the method and complexity of the case. Debitura offers a pre-legal collection service with a no-cure-no-pay model and success fee between 10-20%. Legal actions are case-specific and prices vary accordingly. Debitura can provide 3 quotes from top debt collection lawyers in Ireland to find the most cost-effective solution for your case.
The length of time it takes to collect a debt in Ireland varies depending on the specific circumstances of the debtor and the case. If the debt can be resolved in the pre-legal phase, the process typically takes 3-6 months. However, if legal action is necessary to collect the debt, it may take 12-18 months. It's important to work with experts who can tailor an effective collection strategy based on each unique situation.