Top-Rated Debt Collection Agency in Kuwait
Fast and reliable debt collection in Kuwait - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
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Recover your debt in Kuwait easily.
Debitura is a specialist in debt recovery services in Kuwait. Our team of experts offers a wide spectrum of services, such as account receivables management, debt recovery notices, pre-legal and legal debt collection, and court proceedings to enforce debt payments. With our knowledge of Kuwait's debt collection laws, we provide quick and effective solutions to help businesses recover their outstanding debts.
Our comprehensive support is available to you throughout the entire debt collection process, from the beginning to the end.
Tailored debt recovery approach.
We have a team of over 500 experts who specialize in international debt collection.
Achieving a success rate of 87% while keeping the costs low.
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Miras Legal is a full-fledged business law firm based in Kuwait, established in 2016 by its founders Abdullah Al Kharafi and Khaled Al Jallal. The Firm provides a wide range of comprehensive legal services to national and international corporate clients as well as other organizations. We pride ourselves on integrating international practice with in-depth local market knowledge, demonstrated by the rapid growth seen in strong record achievements within few years of Miras Legal’s inception.
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The ultimate guide about debt collection in Kuwait
If you have money that someone else owes you from Kuwait, you are in the right place. We have helped many other businesses get their money back that was owed to them. It can be difficult to get your money back from Kuwait because of the language barrier, different laws and customs, and being so far away. But it is easier to use a collection agency that knows the laws and customs of Kuwait.
At Debitura, we care about people. We want to help you get your money back while still being fair to the person who owes you money. Our goal is to make sure that your reputation is intact. If you want to learn more about how to collect debt in Kuwait, keep reading this guide. If you would rather work with a law firm that specializes in debt recovery in Kuwait, we can help you with that too.
At Debitura, we help you to get your money back that you are owed from someone. You can start today by uploading your claim on our website. We will look at your case and then give you 3 different options with prices from local debt collectors in Kuwait 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 the results you need while preserving customer relationships. In addition, our network of debt collectors, attorneys, suppliers and vendors are cherished relationships that allows us to get the job done. We value each of these relationships, no matter how small or large.
Upload claim
Begin the debt collection process in Kuwait today without charge. Simply create a free profile and upload your case in only two minutes.
Pre-legal
We use a proven pre-legal recovery process to collect your claim for the first 3 months. You only pay us if we successfully collect your debt - no cure, no pay.
Legal
If your claim remains unpaid in the pre-legal phase, we'll offer you 3 quotes from our nearby debt collection lawyers.
24/7 updates
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Kuwait
Do you have trouble collecting money that people owe you in Kuwait? Do not worry; we can help you get paid by your Kuwaiti customers.
When collecting debt in Kuwait, the party who owes the debt is called “the debtor”, and the party who has 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”.
The debt collection process in Kuwait
The debt collection process in Kuwait usually has multiple steps.
The image below explains the process we use to collect debt in Kuwait:
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. Debitura will help you find a local partner in Asia who can help you with your case. This service is free.
2 Amicable collection:
Debitura will try to contact the person who owes you money through email, SMS, letter and any other way possible in the specific country. The goal is to get the debtor to pay or agree that they owe the debt and start a plan to pay it back. Amicable collections with Debitura are 100% risk-free!
3 Evaluation:
If the person you lent money to has not paid you 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 is the best course of action. The three most common next steps are:
A: Surveillance:
If your claim is for an amount less than 2,000-5,000 euros, it is often not worth it to take further legal action. In this case, we recommend "debt surveillance." This means that we will keep trying to contact your debtor and try to reach an agreement that is acceptable to both sides.
B: Legal collections:
It's a good idea to go through the legal system if you're making a big claim. The steps you'll need to take will vary depending on what you're claiming and how much money is involved. Usually, it takes around a year and a half to finish the process.
C: Debt enforcement:
If the person you are claiming money from has said that they owe you money, or if there is a court order, you can ask the bailiff to help get your money.
At Debitura, we can help you with all three steps in Kuwait.
Amicable collection in Kuwait
At Debitura, we offer a 100% risk-free and efficient process for Amicable collections. All you have to do is submit your claim, and we will get started within 24 hours.
We will try to reach your debtor in Kuwait through different ways, like email, text messages, letters, phone calls, and social media.
The reason we are doing this is to:
A) Get the debtor to pay the full amount
B) Get the debtor to start a payment plan
If the person you are trying to get money from has disputed your claim, you cannot start with an amicable resolution. You must start directly with legal collections.
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 Kuwait
If you have not received payment during the amicable phase or the debtor disputes your claim, we will provide you with 3 free quotes from our 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 via the legal system in Kuwait. This payment order can then be used to enforce your claim via enforcement court.
The amount of money you will need to pay a lawyer depends on your situation. It is a good idea to ask for quotes from more than one lawyer so you can compare prices. You can do this easily by using Debitura.
Get started with
legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in Kuwait
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 Kuwait to get your money.
The process and how much it costs varies depending on your situation. You can upload your information to Debitura. They will give you 3 quotes for your case within 24 hours.
Get started with
debt enforcement
Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in Kuwait
If the person you owe money to cannot pay you back, you can start a process called insolvency. The goal of this is to sell the things the person owns and give the money to the people they owe in order from most important to least important.
The analysis is concluding that the risk of conducting business in Kuwait 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 Kuwait 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 Kuwait
Economic risk in Kuwait is medium (3 out of 6). An economic risk of 3 out of 6 is low in Asia.
GDP and economic growth are critical drivers for economic risk.
The GDP of Kuwait is bn. USD (2021), growing by % per year.
In terms of the size of its economy, Kuwait ranks #179 out of 183 countries and has a small economy.
You get a more detailed idea of GDP and economic growth in Kuwait in the table below:
Another huge impact for the economic risk score is the inflation rate and the interest rates. You get a more detailed idea of monetary KPIs in Kuwait in the table below:
The inflation in Kuwait was 3,4% in 2021 which is considered a low inflation rate.
Looking at the interest rate for businesses, it is 3,71%.
The business environment risk in Kuwait
Our analysis shows that the business environment risk in Kuwait is medium-high (4 out of 6), which is a pretty average risk score in Asia.
The business environment risk are determined by the level of economic freedom and rights in a country. You can see the critical facts for Kuwait in the table below:
As you can see in the table, the property rights index is 57 in Kuwait, which is considered quite low in Asia.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 66 in Kuwait, a pretty average score for a country in Asia.
Kuwait'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 Kuwait
The political risk in Kuwait is medium, with a score of 3/6. This is a relatively low political risk score in Asia.
The governance and political stability indicators are critical drivers for political risk. An overview of Kuwait can be seen in the data 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 Kuwait, the rule of law index is at 0,26 points, with the score going from -2.5 (weak) to 2.5 (strong). Kuwait has, therefore, a medium rule of law index, which means it should be possible to enforce your contracts. If possible, we still recommend charging payment upfront or working with credit insurance for larger deals.
Other drivers for the medium political risks are the weak control of corruption, the weak political stability index, and the medium-large shadow economy that is 21,72% of Kuwait's GDP.
The commercial risk in Kuwait
In Kuwait, 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 Asia.
The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Kuwait in the table below:
Kuwait has a foreign exchange reserve of 49.53 bn. USD.
The financing risk in Kuwait
We have calculated the financing risk to be 1/4, which equals a very low risk. A very low financing risk score is low for countries in Asia.
The country's banking system, efficiency, and stability influence the financing risk. Additional facts and info can be found for Kuwait in the table below:
In Kuwait, 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 Kuwait is high.
This makes it easy for you to understand the credit risk of your counterpart in Kuwait. Based on this, it should be possible to to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.
Your rights as a creditor are 1 out of 12 and, therefore, very weak.
The very low financing risk for creditors also impacts the medium interest rate in the private sector of 3,71%.
Debt collection in Kuwait: Frequently Asked Questions (FAQ)
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When collecting debt in Kuwait, the party who owes the debt is called “the debtor” and the party who issued the debt is called “the creditor”. The debt collection process in Kuwait usually involves multiple steps, such as amicable collection and legal collections. Debitura can help you with all three steps in Kuwait, including finding a local partner to upload your claim to, attempting to contact the debtor, and evaluating the situation to determine the best course of action for you.
The debt collection process in Kuwait typically involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection involves attempting to contact the debtor and getting them to agree to pay the debt. Legal debt collection involves going through the legal system to recover the debt. Debt enforcement involves getting the bailiff's help to recover the debt. Debitura can help you with all three steps in Kuwait.
To collect a debt in Kuwait, if the debtor disputes your claim, a civil lawsuit will be necessary. Legal actions, such as debt enforcement and insolvency proceedings, require a local lawyer. Our partners will provide you with 3 free quotes from local debt collection attorneys to negotiate with the debtor and take legal actions if necessary. Insolvency proceedings can be initiated if the debtor is unable to pay. Contact our team for further assistance on debt collection in Kuwait.
The cost of debt collection in Kuwait varies depending on the specifics of your case. At Debitura, we offer a no-cure-no-pay model for pre-legal collection with a success fee between 10-20%. Legal action costs depend on the desired actions, but we can obtain three quotes from the best debt collection lawyers in Kuwait to help you make an informed decision.
The duration of debt collection in Kuwait depends on various factors, such as the debtor and the case. If the matter is resolved in the pre-legal phase, the collection process typically takes 3-6 months. However, if legal actions are required, it may take 12-18 months to collect the debt. The time frame may also vary based on the complexity of the case and the cooperation of the debtor.
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