Top-Rated Debt Collection Agency in Lithuania
Fast and reliable debt collection in Lithuania - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
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Recovering your debt in Lithuania is easiest through this way.
Debitura is a Lithuanian debt recovery specialist, offering a wide range of services handled by our experienced professionals. Our services include managing accounts receivables, issuing debt collection notices, providing pre-legal and legal debt collection services, and handling enforcement court proceedings. Our team's knowledge of Lithuanian debt collection laws enables us to offer efficient and effective solutions, helping businesses recover outstanding debts.
We provide unwavering assistance from beginning to end.
Tailored debt recovery plan.
We have a team of over 500 professionals specialized in international debt collection.
Our services boast a success rate of 87% at the most competitive rates.
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We are qualified legal specialists who ensure the quality of services and their continuity. We provide pre-trial and judicial debt collection services. Our activities are not limited by time or distance - we patiently carry out pre-trial and judicial debt collection.
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We are a corporate law firm specializing in debt collection and litigation. With our proprietary software, we manage hundreds of debt collection cases each month in various Lithuanian courts.
The ultimate guide about debt collection in Lithuania
Are you seeking to recover debt from a business or customer in Lithuania? Look no further, as we have assisted numerous businesses in recovering financial claims in Lithuania.
In Lithuania, collecting a debt can present significant obstacles due to language and cultural differences, unfamiliar laws and practices, and distance.
It is easier to retrieve outstanding debts when utilizing a collection agency that is well-versed in the laws and customs of the country where the person owing the debt lives.
At Debitura, our main focus is on putting the needs of our clients first. We strive to recover your funds while maintaining positive relationships with your customers. Our approach to public relations is balanced and assertive, and we prioritize protecting your reputation. If you are looking to handle debt collection on your own and gain a comprehensive understanding of the process in Lithuania, please continue reading this guide. However, if you prefer to work with a specialized Lithuanian law firm for debt recovery, we are available to assist you.
At Debitura, we offer an easy solution for recovering debt in Lithuania and over 192 other countries. Begin the process by submitting your claim and within 24 hours, we will evaluate your situation and offer 3 complimentary quotes from local debt collection attorneys in Lithuania. Our approach combines a focus on people with advanced technology, resulting in improved communication and effective outcomes. This comprehensive method achieves results while maintaining positive customer relationships. Furthermore, our network of debt collectors, attorneys, suppliers and vendors are important partnerships that allow us to efficiently complete our tasks. We value each of these connections, whether they are large or small.
Upload claim
Begin your debt collection process in Lithuania today without any costs. Simply create a free profile and upload your case within 2 minutes.
Pre-legal
During the initial 3 months, we'll use our pre-legal recovery method to attempt to recover your debt. Our approach is tried-and-tested and comes with a 100% no-win, no-fee guarantee.
Legal
If your debt goes unpaid during the pre-legal phase, we connect you with three quotes from nearby debt collection attorneys to help retrieve your claim.
24/7 updates
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Lithuania
Are you facing difficulties in obtaining payment from your Lithuanian clients? Let us assist you in making the process simpler.
In Lithuania, the individual or organization owing the debt is referred to as "the debtor" and the one who has issued the debt or invoice is referred to as "the creditor." If the creditor chooses to collect the debt on their own, it is referred to as "first-party collection." On the other hand, if the creditor decides to hire a third party to collect the debt, it is known as "third-party collection."
The debt collection process in Lithuania
The procedure for collecting outstanding debt in Lithuania usually involves several stages. The illustration below depicts our standard method for recovering debt in Lithuania.
1 Upload your claim:
To begin the process of recovering your debt, you will need to find a debt collection partner. You can upload your claim to their website. If you choose to use Debitura, we will give you three quotes from local partners in the European country that is relevant to your case. This service is completely free and requires no commitment.
2 Amicable collection:
At Debitura, our collection process begins with a series of friendly reminders sent to the debtor through various communication channels, such as email, SMS, and letter. Our aim is to encourage the debtor to pay or acknowledge the debt and establish a payment plan. We offer a no-cure-no-pay solution for amicable collection, meaning you only pay a small success fee if we successfully recover your debt. With Debitura, amicable collections are completely risk-free!
3 Evaluation:
If you haven't received payment from the debtor after attempting to resolve the issue amicably, it's time to consider your options. We will assess the amount of your claim, the likelihood of payment, and other factors to help you decide on the best course of action. Typically, there are three potential next steps to take.
A Surveillance:
If the amount of your claim is less than $2,000 to $5,000, it may not be cost-effective to pursue further legal action. In such instances, we suggest utilizing "debt surveillance" where we will continuously contact your debtor and attempt to reach a mutually agreeable resolution.
B: Legal collections:
It is suggested to initiate a legal procedure for substantial claims, the methodology varies based on the nature and magnitude of your claim. Generally, it is anticipated that the procedure will take a duration of 12-18 months.
C: Debt enforcement:
You can utilize the bailiff's court to enforce your claim if the debtor has acknowledged it or if you have a court order.
Amicable collection in Lithuania
At Debitura, we provide a hassle-free and highly efficient method for amicable debt collection. Simply submit your claim, and our team will begin working on it within 24 hours. We will contact the debtor through various means, such as email, SMS, letters, phone calls, and social media, all in Lithuania.
Our goal is either to:
A) secure full payment or
B) to have the debtor acknowledge the debt and set up a payment plan.
However, if the debtor disputes your claim, we must proceed with legal collection methods instead of amicable resolution.
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Get started with
amicable debt collection
Upload your claim and get started with our 100% no-cure-no-pay collection solution.
Legal collection in Lithuania
If your claim has not been resolved during the initial, friendly phase or the debtor contests your claim, we will offer you 3 complimentary quotes from nearby debt collection attorneys. During the legal phase, one of our local attorneys will contact the debtor and attempt to negotiate a payment. Additionally, our partners have the ability to take legal action and obtain a payment order through the Lithuanian legal system. This payment order can then be enforced through the enforcement court to collect your claim.
The cost of legal fees can vary depending on the intricacy and magnitude of your case. To ensure you get the most cost-effective option, it is advisable to obtain multiple quotes from various attorneys. Utilizing Debitura, you can easily gather these quotes with a few simple clicks.
Get started with
legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in Lithuania
In Lithuania, you can utilize the bailiff's court to enforce your claim if you have either a written acknowledgement from the debtor or a court order.
The cost and steps involved in your case may differ, but you can upload your information to Debitura to receive three personalized quotes for your claim within 24 hours.
Get started with
debt enforcement
Upload your claim and get 3 FREE quotes from our local collection partners.
European Late Payment Directive in Lithuania
As Lithuania is a member of the European Union, the Directive 2011/7/EU on combating late payments in commercial transactions throughout Europe applies.
The directive includes the following key provisions:
- Public authorities are not allowed to demand payment terms that extend beyond 30 days.
- Private businesses are not allowed to demand payment terms that exceed 60 days.
- If the entity owing you money is a business, you can charge a €40 fee for late payment as a minimum compensation.
- The interest rates for overdue payments must be at least 8% higher than the benchmark rate set by the European Central Bank.
As a member of the EU, the Danish government is not permitted to establish regulations at the local level that are less favorable for creditors than the EEU-wide rules mentioned above.
Our analysis concludes that the risk of conducting business in Lithuania 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 Lithuania. 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:
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The economic risk in Lithuania
Economic risk in Lithuania is low (2 out of 6). An economic risk of 2 out of 6 is relatively low in Europe.
GDP and economic growth are critical drivers for economic risk.
The GDP of Lithuania is 65,5 bn. USD (2021), growing by 5% per year.
In terms of the size of its economy, Lithuania ranks #75 out of 183 countries and has a medium-sized economy.
Having a view at the growth rate, it is ranked #79 out of 183 countries and is therefore considered a fast-growing economy.
GDP per capita is 23433 USD, ranking Lithuania number #39 out of 183 countries. This means the purchasing power of citizens in Lithuania is high compared to the rest of the world.
You get a more detailed idea of GDP and economic growth in Lithuania in the table below:
Another big impact for the risk score is the inflation rate and the interest rates. You get a more detailed idea of monetary KPIs in Lithuania in the table below:
The inflation in Lithuania was 4,7% in 2021 which is considered a medium inflation rate.
The business environment risk in Lithuania
Our analysis shows that the business environment risk in Lithuania 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 Lithuania in the table below:
As you can see in the table, the property rights index is 79 in Lithuania, 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 73 in Lithuania, a pretty average score for a country in Europe.
Lithuania's overall economic freedom index is 77 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Lithuania
The political risk in Lithuania 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 critical drivers for political risk. An overview of Lithuania 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 trading with businesses in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Lithuania, the rule of law index is at 1,11 points, with the score going from -2.5 (weak) to 2.5 (strong). Lithuania 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 average control of corruption, the average political stability index, and the normal shadow economy that is 18,65% of Lithuania's GDP.
The commercial risk in Lithuania
In Lithuania, the commercial risk score is 4/4, which in our model is a high score. This high commercial risk score is high 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 Lithuania in the table below:
Lithuania has a foreign exchange reserve of 5.58 bn. USD.
Lithuania has a positive trade balance of 4,2% of GDP. This means that Lithuania imports fewer goods and services than the country exports.
The annual growth of exports of goods and services has been growing 15,91% annually - now 80,38% of GDP. Import of goods and services represents 76,18% of the GDP in Lithuania.
The financing risk in Lithuania
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 Lithuania in the table below:
In Lithuania, 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 Lithuania is high.
This makes it easy for you to understand the credit risk of your counterpart in Lithuania. 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 rights as a creditor are 6 out of 12 and, therefore, weak.
Debt Collection in Lithuania: Frequently Asked Questions
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In Lithuania, debt collection involves the debtor (who owes the debt) and the creditor (who issued the debt or invoice). Collection can be done by the creditor themselves (first-party) or by hiring a third party (third-party). The process usually involves stages, including uploading the claim, amicable collection, evaluation, and potential next steps such as debt surveillance, legal collections, or debt enforcement. At Debitura, we offer a risk-free solution for amicable collection, with a small success fee only if we recover your debt.
The debt collection process in Lithuania typically involves three stages: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection involves friendly reminders sent to the debtor through various communication channels. If this does not work, legal action may be taken for substantial claims. For small claims, debt surveillance is suggested. Debt enforcement can be utilized if the debtor has acknowledged the debt or if you have a court order. Debitura offers a risk-free, no-cure-no-pay solution for debt collection in Lithuania.
In Lithuania, if a debt is disputed, a civil lawsuit is required for collection. Debt enforcement and insolvency proceedings are also available. Legal actions require a local lawyer. Our partners offer 3 complimentary quotes from debt collection attorneys who can negotiate a payment with the debtor and take legal action if necessary. Legal fees vary and it's recommended to obtain multiple quotes for cost-effectiveness. Debitura makes it easy to gather these quotes with just a few clicks.
Debt collection costs in Lithuania vary depending on the specific case and desired actions. Debitura offers a no-cure-no-pay model for pre-legal collection, with a success fee between 10-20%. For legal actions, the price varies. Debitura can provide 3 quotes from the best debt collection lawyers in Lithuania.
The duration of debt collection in Lithuania depends on the individual debtor and case specifics. Generally speaking, if the pre-legal phase is effective, it takes about 3-6 months to collect the debt. However, in cases requiring legal action, the process can take longer, around 12-18 months. It's important to keep in mind that each case is unique and can vary in length.
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