Top-Rated Debt Collection Agency in Madagascar

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

Recovering your debt in Madagascar is simplest through this method.

Debitura specializes in debt collection in Madagascar. Our team of experienced professionals offers a wide range of services, including accounts receivables management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. We have a thorough understanding of Madagascar's debt collection laws and regulations, which enables us to provide efficient and effective solutions for businesses to recover their outstanding debts.

We provide continuous support throughout the entire process.

Tailored collection plan.

We have a team of over 500 experts who specialize in international debt collection.

The lowest cost with a 87% success rate.

INTRODUCING OUR PARTNERS: Leading Debt Collection Lawyers in Madagascar
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The ultimate guide about debt collection in Madagascar

If you are owed money by a business or customer in Madagascar, we can help you. We have helped hundreds of other businesses get their money back from people who owe them.


It can be difficult to collect a debt in Madagascar because of language and cultural differences, foreign laws, and distance.


Using a collection agency that knows the laws and customs of the country where the person you owe money to lives makes it easier to get your money back.


At Debitura, we always try to help you get your money back while still keeping a good relationship with the person who owes you money. Our strategies are fair but firm- which means that we will always try to protect your reputation first and foremost! If you want to learn more about the process of collecting debt in Madagascar, keep reading this guide. If you would rather work with a local law firm that specializes in debt recovery in Madagascar, we can help you with that too.

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.

At Debitura, we provide an easy way to collect your debt in Madagascar and 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 Madagascar within 24 hours. We use both people and technology to get results while still maintaining good customer relationships. Our network of debt collectors, attorneys, suppliers and vendors are all important to us and help us get the job done. We value all of these relationships equally, no matter how big or small they may be.

We work with the following process: 
1

Upload claim

Get started with debt collection in Madagascar today at no cost. Simply sign up for a free profile and submit your case in just two minutes.

2

Pre-legal

Our pre-legal recovery process will be implemented to collect your claim in the first 3 months. We guarantee a no-cure-no-pay policy.

3

Legal

If your claim remains unpaid during the pre-legal phase, we will offer you three quotes from our local debt collection attorneys.

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 Madagascar

Do you have trouble getting paid by your customers in Madagascar? Do not worry; we can help you get paid easily.


The person who owes the debt is called the debtor. The person who gave the debt is called the creditor. If the creditor collects the debt, it is first-party collection. If someone else collects the debt for the creditor, it is third-party collections.

The debt collection process in Madagascar

The debt collection process in Madagascar is typically conducted in multiple steps. The image below explains our standard process for collecting debt in Madagascar:

The debt collection process in Madagascar here:

1 Upload your claim:

If you want someone else to help you get your money back, you will start by finding a debt collection partner. You will give them some information about the money you are owed, and they will try to get the money for you. Debitura can help you find a good debt collection partner. We will give you 3 quotes from local partners in the African country where the person who owes you money lives. This service is free - there is no catch.

2 Amicable collection:

The first step in collecting a debt is to send reminders to the person who owes you money. This can be done by email, text, letter, or any other way of communicating in the specific country. The goal is to get the debtor to pay or at least acknowledge the debt and start a payment plan. Debitura offers a solution where you only have to pay a small success fee if we are able to collect the debt. Amicable collections with Debitura are therefore 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 factors to help you decide what to do. There are three typical next steps:

A Surveillance:

If your claim is for an amount 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 contact the person you owe money to and try to reach a friendly agreement.

B: Legal collections:

We suggest beginning a legal action for bigger complaints. Exactly how it will be done depends on what you are claiming and how much you are claiming. Usually, it takes around 1-1.5 years to finish the process.It's like when you're in court, the judge and other people involved in the court case will want to know what you are complaining about and how much money you are asking for, and it takes a while to get the final decision.

C: Debt enforcement:

If the person you are owed money from has said they will pay you, or if there is a court order, you can go to the bailiff's court to get your money.


At Debitura, we can help you with all three steps in Madagascar.

5-star user rating5-star user rating5-star user rating5-star user rating5-star user rating
"Thanks to Debitura, our business was able to recover outstanding debt in Madagascar within no time. Their quick and effective debt collection services in Madagascar helped us minimize our losses and improve our cash flow."
Julie Rajaonarivelo - Chief Financial Officer
5-star user rating5-star user rating5-star user rating5-star user rating5-star user rating
"Thanks to Debitura, debt recovery in Madagascar has never been easier. They provided us with exceptional service and secured successful collection of our debts. Highly recommend!"
Aina Rakotoarison - Customer Service Manager at XYZ Corporation.
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 Madagascar

At Debitura, we offer a 100% risk-free and efficient process for Amicable collections. This means that you can submit your claim to us, and we will get started on it within 24 hours.


We will try to contact your debtor in Madagascar by email, text, letter, phone call, or social media.


The goal of this process is to:


A) get the debtor to pay the full amount or

B) get the debtor to agree that they owe money and start a plan to pay it back


If the person you are trying to get money from says that they do not owe you money, you cannot try to resolve this peacefully. You must go directly to legal collections.

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
Upload claim!

Debt enforcement in Madagascar

If you have written proof that the person you are suing owes you money, or a court order, you can go to the bailiff's court in Madagascar to get your money.

The process and how much it will cost varies depending on your situation. To find out how much it will cost and what the process is, upload your case information to Debitura. You will get three different quotes from different companies within 24 hours.

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!

Madagascar country risk profile

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

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

Our analysis has shown that the risk of running a business in Madagascar 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 Madagascar well. If possible, provide a short credit period or even better upfront payment. The average risk is conluded on the following areas:

Economic Risk:
6
Economic Risk:
6
Economic Risk:
6
Economic Risk:
6
Economic Risk:
6
Economic Risk:
6
Business Risk:
5
Business Risk:
5
Business Risk:
5
Business Risk:
5
Business Risk:
5
Business Risk:
5
Political Risk:
5
Political Risk:
5
Political Risk:
5
Political Risk:
5
Political Risk:
5
Political Risk:
5
Commercial Risk:
1
Commercial Risk:
1
Commercial Risk:
1
Commercial Risk:
1
Financing Risk:
2
Financing Risk:
2
Financing Risk:
2
Financing Risk:
2

The economic risk in Madagascar

Our analysis shows that the economic risk in Madagascar is very high (6 out of 6). An economic risk of 6 out of 6 is relatively high in Africa.

GDP and economic growth are critical drivers for economic risk.
The GDP of Madagascar is 14,64 bn. USD (2021), growing by 4,4% per year.

In terms of the size of its economy, Madagascar ranks #125 out of 183 countries and has a medium-sized economy.

Looking at the growth rate, it is ranked #92 out of 183 countries and is therefore considered an excellent growing economy.

GDP per capita is 515 USD, ranking Madagascar number #171 out of 183 countries. The result of this is purchasing power of citizens in Madagascar is low compared to the rest of the world.

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

GDP and economic growthLatest value
Economic growth: the rate of change of real GDP4,4%
Gross Domestic Product, billions of U.S. dollars14,64
GDP per capita, current U.S. dollars514,91
GDP per capita, Purchasing Power Parity1488,65

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 Madagascar in the table below:

Monetary KPI'sLatest value
Business credit interest rate, percent48,28%

The business environment risk in Madagascar

Our analysis shows that the business environment risk in Madagascar is high (5 out of 6), which is a pretty average risk score in Africa.

Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Madagascar in the table below:

Economic freedom indexLatest value
Property rights index (0-100)46
Freedom from corruption index (0-100)20
Fiscal freedom index (0-100)91
Business freedom index (0-100)47
Monetary freedom index (0-100)73,7
Trade freedom index (0-100)65
Investment freedom index (0-100)55
Financial freedom index (0-100)50
Economic freedom, overall index (0-100)58

In the above table, you can see, the property rights index is 46 in Madagascar, which is considered quite low in Africa.

The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 47 in Madagascar, a quite low score for a country in Africa.

Madagascar's overall economic freedom index is 58 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.

The political risk in Madagascar

The political risk in Madagascar is high, with a score of 5/6. This is a pretty average political risk score in Africa.

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

Governance and political stability indicators Latest value
Rule of law index (-2.5 weak; 2.5 strong)-0,87
Government effectiveness index (-2.5 weak; 2.5 strong)-1
Control of corruption (-2.5 weak; 2.5 strong)-0,93
Political stability index (-2.5 weak; 2.5 strong)-0,64
Corruption Perceptions Index, 100 = no corruption26
Shadow economy, percent of GDP45,29%

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 transacting business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.

In Madagascar, the rule of law index is at -0,87 points, with the score going from -2.5 (weak) to 2.5 (strong). Madagascar 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 high political risks are the very weak control of corruption, the very weak political stability index, and the very large shadow economy that is 45,29% of Madagascar's GDP.

The commercial risk in Madagascar

In Madagascar, the commercial risk score is 1/4, which in our model is a very low score. This very low commercial risk score is low compared to the average in Africa.

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

International trade and investment Latest value
Exports of goods and services as percent of GDP22,47%
Exports of goods and services, annual growth11,65%
Imports of goods and services as percent of GDP30,16%
Trade balance as percent of GDP-7,7
Foreign exchange reserves, billion currency units2.33

Madagascar has a foreign exchange reserve of 2.33 bn. USD.

Madagascar has a negative trade balance of -7,7% of GDP. The meaning of this is that Madagascar imports more goods and services than the country exports.

The annual growth of exports of goods and services has been growing 11,65% annually - now 22,47% of GDP. Import of goods and services represents 30,16% of the GDP in Madagascar.

The financing risk in Madagascar

We have calculated the financing risk to be 2/4, which equals a low risk. A low financing risk score is relatively low for countries in Africa.

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

Banking system efficiency and stabilityLatest value
Interest rates on bank credit to the private sector48,28%
Real interest rate: Bank lending rate minus inflation38,34%
Index of legal rights for creditors and borrowers (0 = weak to 12 = strong)2
Credit information sharing index, 0 (low) - 8 (high)6

In Madagascar, the credit information sharing index is 6 on a scale from 0 (low) to 8 (high). The result of this is accessibility and quality of credit information available in Madagascar is medium.

This makes it easy for you to understand the credit risk of your counterpart in Madagascar. 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 48,28%.

Debt Collection in Madagascar: Frequently Asked Questions

How does debt collection work in Madagascar?

In Madagascar, debt collection is typically done in multiple steps. It starts with finding a debt collection partner who will send reminders to the debtor to pay or acknowledge the debt. This is followed by an evaluation of the situation to decide the next steps, which can either be debt surveillance, legal collections or debt enforcement. Debitura can help with all three steps in Madagascar and offers a risk-free solution for amicable collections.

What is the debt collection process in Madagascar?

The debt collection process in Madagascar usually involves three steps: pre-legal collection, legal debt collection, and debt enforcement. It begins by finding a debt collection partner and sending reminders to the debtor. If the debt is not paid, you can decide to either continue surveillance or start with legal action. Debt enforcement can be pursued through the bailiff's court once a court order or payment agreement is reached. Debitura can assist you in all three stages in Madagascar.

What legal options exist for debt collection in Madagascar?

If a debt is disputed in Madagascar, a civil lawsuit is required for legal collection. Debt enforcement and insolvency proceedings are also options. Legal actions require a local lawyer, who can negotiate payments and obtain a payment order via the legal system. Costs vary based on the complexity of the case, but Debitura can provide you with multiple quotes to help you find the best price.

How much does debt collection cost in Madagascar?

At Debitura, we offer pre-legal debt collection services in Madagascar with a no-cure-no-pay model and a success fee ranging from 10-20%. The cost for legal actions varies depending on the specifics of your case. We can provide you with three quotes from the top debt collection lawyers in Madagascar.

How long does debt collection take in Madagascar?

The length of time for debt collection in Madagascar varies depending on the debtor and the case. If the case can be resolved in the pre-legal phase, then the process usually takes between 3 to 6 months. However, if legal actions are required, it can take longer, typically 12 to 18 months. The specific duration of debt collection will depend on the specific circumstances of each case.