Top-Rated Debt Collection Agency in Morocco
Fast and reliable debt collection in Morocco - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
Recover your debt in Morocco with ease.
Debitura specializes in debt recovery services in Morocco, offering a wide range of solutions through experienced professionals. These include accounts receivable management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. Our team is well-versed in the laws and regulations governing debt collection in Morocco, enabling us to provide effective solutions for businesses seeking to recover outstanding debts.
Get personalized assistance throughout the entire process.
A tailor-made approach for collecting debts.
We have a team of over 500 professionals specializing in debt collection on an international level.
Achieving a success rate of 87% while maintaining the lowest cost.
The KADOURI AL MOSTAPHA law firm was founded in 2016. We distinguish ourselves from other law firms by our inventiveness and uncompromising professionalism. We are fully committed to our customers. Our firm offers various legal services in many areas.
The ultimate guide about debt collection in Morocco
If you are owed money by a business or person in Morocco, we can help you get your money back. We have helped many other businesses get their debt back from people in Morocco. It can be difficult to get your money back from someone in another country, but we know how to do it.
At Debitura, we always put people first. That means we try to get your money back while still having a good relationship with the customer. We're firm but fair in our public relations efforts-which means your reputation is always our top priority! If you want to understand the Moroccan debt collection process from start to finish, keep reading this guide. But if you'd rather work with a local law firm that specializes in debt recovery in Morocco, we can help you with that too.
At Debitura, we provide an easy way to collect your debt in Morocco and 192 other countries. To get started, upload your claim today. We will review your case within 24 hours and provide you with 3 free quotes from local debt collection lawyers in Morocco. We use both people and technology to get results. We also have a network of people we can rely on to help us achieve our goals. These relationships are important to us, no matter how big or small they may be.
Begin your debt collection process in Morocco for no charge today. Simply create a free profile and upload your case in under 2 minutes.
Our pre-legal recovery process will be implemented for the initial 3 months of attempting to collect your claim. This process comes with a 100% no-cure-no-pay guarantee.
If your claim remains unpaid during the preliminary stage, we can offer you three quotes from nearby debt collection lawyers.
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Morocco
Do you have a hard time collecting debt in Morocco? We make it easy for you to get paid by your Moroccan customers. When collecting debt in Morocco, 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 average number of days that it takes for companies in Morocco to pay their bills is high. This number is between 120 and 150 days. This means that people who do work for these companies have to wait a long time to get paid.
- The judiciary is a system with many levels. It is criticized because it is not effective and people do not know how it works. This means that it would be a bad idea to start legal action in most cases, and even if you won, it would be hard to get the other person to pay. It is better to ask someone who knows the local market to help you get the money you are owed.
- There are some ways to get people to pay you money that they owe you in Morocco, but they are complicated, slow, and often don't work very well.
Days Sales Outstanding (DSO)
In 2011, the law said that people have to pay for things they bought within 60 days. But in Morocco, it usually takes 120 to 150 days to pay for something. This is because of the worldwide financial context. Public sector debtors are even worse. They usually don't pay their debts for a year. But DSO for listed companies is shorter and has been getting shorter over the past few years.
Common payment types in Morocco
The most common payment methods people use are:
Bank transfers are a popular way to pay for things when people live in different countries. They are fast and secure. This type of payment is supported by a lot of banks all over the world. When people use bank transfers to buy things from another country, there is usually an insurance policy that protects the seller in case the buyer can't pay.
Allianz Trade has risk offices all over the world. They keep track of how well our customers are doing financially and set a limit on how much they can trade. If something goes wrong, we will pay them back up to that limit. We also use something called a Standby Letter of Credit when people buy things from us to be shipped. This is like a guarantee that the person we are selling to will actually pay us back. If they don't, we can still get our money back. An irrevocable and confirmed Documentary Letter of Credit is a way that someone can guarantee that money will be available to another person through a bank, once certain terms have been agreed upon and met.
Bank guarantees are available, but you may also be able to get personal guarantees from business partners. The law allows requesting 40% of the invoice to be paid in advance. Checks are often used as payment methods, but they can also help if the debtor does not pay. Bills of exchange are less common now, but they can help with short-term financing.
Corporate Structures: The Main Types
Who is responsible for business debts? The legal structures decide this. Here is how it works:
- A sole proprietorship is a business owned by one person. The owner is responsible for all debts of the business. Two or more people may own a partnership. The partners are responsible for the actions of the other partners. A limited liability partnership offers limited responsibility to the partners.
- Most businesses in Morocco are Private Limited Liability Companies because they require less money to start (EUR 900). This means that the people who start the company are only responsible for the money they put into it. Public Limited Companies are used for larger businesses that want to divide their money into shares. This means that the people who invest in the company are only responsible for the value of their shares.
- Foreign companies may also choose to set up shop in Morocco through Branch Offices. This option does not limit the foreign parent company's liability. Joint Ventures would be set up through a contract, but they cannot take any legally binding action because they do not have legal status.
The debt collection process in Morocco
The debt collection process in Morocco typically involves multiple steps.
The image below explains our standard process for collecting debt in Morocco:
1 Upload your claim:
Unless you want to get your money back yourself, you will start by finding a company that collects debt. You will give them your information, and they will try to get the money for you. If you use Debitura, we will give you 3 quotes from different companies in Africa that might be able to help you. This is free - you do not have to pay us anything.
2 Amicable collection:
The collection process starts with sending reminders to the person who owes you money. This is called the debtor. The reminders are sent through email, SMS, letter, and other ways to contact the person. The goal is to get the debtor to pay or acknowledge the debt and start a payment plan. Debitura offers a no-cure-no-pay solution for amicable collection, which means you only pay a small success fee if we recover your debt. Amicable collections with Debitura are 100% risk-free!
If you have not gotten money from the person you loaned it to after trying to work it out, it is time to look at what to do next. We will look at how much money you are owed, the chance of getting paid, and other things to help you decide what is the best thing to do. There are three common next steps:
If you owe someone less than 2,000-5,000 Euros, it is often not worth it to take 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 an agreement without going to court.
B: Legal collections:
We suggest beginning a court case for bigger complaints. The specific steps in the case change depending on what your complaint is about and how big it is. Usually, it takes around one and a half to two years for the case to finish.
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 go to the bailiff's court to get your money.
At Debitura, we can help you with all three steps in Morocco.
Amicable collection in Morocco
At Debitura, we offer a 100% risk-free and very efficient process for Amicable collections. This means that you can submit your claim to us, and we will get started within 24 hours.
We will contact your debtor through different ways in Morocco. This can include email, text messages, letters, phone calls, and social media.
The goal of this is to:
A) Get the debtor to pay the full amount.
B) Get the debtor to agree that they owe the money and 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. This means you cannot try to work it out between yourselves. You must start directly with legal collections.
Late payment interest
The law says that if someone owes you money and they don't pay, you can charge them interest. The interest is the money that the person owes you for not paying on time. If the person still does not pay, you can take them to court.
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amicable debt collection
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Legal collection in Morocco
If the person you are trying to get money from has not paid you yet, or if they disagree that they owe you money, we will give you 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 via the legal system in Morocco. This payment order can then be used to enforce your claim via enforcement court.
Morocco is a region that is always changing and needs investment. This means that the laws are always changing too. If the first way of trying to get money back from someone who owes you fails, there is a fast way to get a Payment Order from the President of the Commercial Court. This also lets you take things that belong to the person who owes you money. This process should be flexible and fast. The people who are asking for the money do not need to appear in court. If the court thinks the request is legitimate, then the debtor will have to pay the money right away.
If the claim is disputed, the case will be reviewed through an ordinary lawsuit. This means that the legal organization of the kingdom and the various procedural deadlines are clearly defined. As far as damages are concerned, plaintiffs can seek compensation for the amount of damages they believe they have suffered and include penalty to compel the debtor to pay as soon as possible.
It is a good idea to have a lawyer help you with legal actions. Allianz Trade can provide support from its network of specialized practitioners.
The law in Morocco is based on French law and Islamic principles. The courts are made up of different types of courts that deal with different kinds of disputes. However, the court system is not very efficient or organized and it is often influenced by the executive power.
The amount of money you will spend on a lawyer depends on how big and difficult your case is. To save money, it is a good idea to compare rates between different lawyers. You can do this by using Debitura, which will let you get multiple quotes with just a few clicks.
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legal debt collection
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Debt enforcement in Morocco
If you have a written acknowledgement of your claim from the debtor, or a court order, you can use the bailiff's court in Morocco to get your money from the debtor in Morocco.
A judgment is final and can be enforced once all other options have been tried. This means that the person who owes the money can have their assets seized and sold. It is recommended that the creditor or a trusted third party (like a lawyer or collector) does this in person. Garnishee orders are normally effective, but they take a long time because there are a lot of steps involved.
The process and cost of this will be different depending on your case. You can upload your case onto Debitura to get 3 specific quotes within 24 hours.
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Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in Morocco
If the person you owe money to can't pay you back, you can do something called an insolvency procedure. This is when you get rid of their things and give the money to the people they owe, following a certain order.
- The Commercial Code Book V encompasses provisions on prevention of difficulties through out-of-court workouts.
- In practice, insolvency procedures are rarely initiated, therefore relying on informal workouts may be efficient.
- Judicial Rehabilitation proceedings are only available for debtors that are in a state of cessation of payments but whose financial situation is not irreparably compromised.
- The court appoints an insolvency judge (juge commissaire) and an insolvency office holder (syndic) but the company’s directors remain in possession of their management prerogatives.
- The procedure is entirely court-driven and there is no direct vote by the creditors on the options available. There seems to be no moratorium in this procedure.
- The judgment opening the liquidation procedure renders all debts immediately due and payable.
The analysis is concluding that the risk of doing business in Morocco 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 Morocco well. If possible, provide a short credit period or even better upfront payment. The average risk is conluded on the following areas:
The economic risk in Morocco
Economic risk in Morocco is medium-high (4 out of 6). An economic risk of 4 out of 6 is low in Africa.
GDP and economic growth are critical drivers for economic risk.
The GDP of Morocco is 132,73 bn. USD (2021), growing by 7,37% per year.
In terms of the size of its economy, Morocco ranks #57 out of 183 countries and has a medium-sized economy.
In terms of growth rate, it is ranked #42 out of 183 countries and is therefore considered a fast-growing economy.
GDP per capita is 3497 USD, ranking Morocco number #116 out of 183 countries. The result of this is purchasing power of citizens in Morocco is average compared to the rest of the world.
You can see a more detailed picture of GDP and economic growth in Morocco in the table below:
Another big impact for the risk score is the inflation rate and the interest rates. You can see a more detailed picture of monetary KPIs in Morocco in the table below:
The inflation in Morocco was 1,4% in 2021 which is considered a very low inflation rate.
The business environment risk in Morocco
Our analysis shows that the business environment risk in Morocco is medium-high (4 out of 6), which is a relatively low risk score in Africa.
Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Morocco in the table below:
As you can see above, the property rights index is 68 in Morocco, which is considered quite good in Africa.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 72 in Morocco, a good score for a country in Africa.
Morocco's overall economic freedom index is 63 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Morocco
The political risk in Morocco is medium-high, with a score of 4/6. This is a relatively low political risk score in Africa.
The governance and political stability indicators are critical drivers for political risk. An overview of Morocco 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 Morocco, the rule of law index is at -0,25 points, with the score going from -2.5 (weak) to 2.5 (strong). Morocco has, therefore, a low rule of law index, which means it often is very difficult 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 large shadow economy that is 27,13% of Morocco's GDP.
The commercial risk in Morocco
In Morocco, 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 Africa.
The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Morocco in the table below:
Morocco has a foreign exchange reserve of 35.65 bn. USD.
Morocco has a negative trade balance of -9,47% of GDP. This means that Morocco imports more goods and services than the country exports.
The annual growth of exports of goods and services has been growing 6,23% annually - now 37,25% of GDP. Import of goods and services represents 46,72% of the GDP in Morocco.
The financing risk in Morocco
We have calculated the financing risk to be 3/4, which equals a medium risk. A medium financing risk score is pretty average for countries in Africa.
The country's banking system, efficiency, and stability influence the financing risk. You can find the critical facts for Morocco in the table below:
In Morocco, the credit information sharing index is 7 on a scale from 0 (low) to 8 (high). The result of this is accessibility and quality of credit information available in Morocco is medium-high.
This makes it easy for you to understand the credit risk of your counterpart in Morocco. 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 2 out of 12 and, therefore, very weak.
Debt Collection in Morocco: Frequently Asked Questions (FAQ)
When collecting debt in Morocco, the debtor is the party who owes the debt and the creditor is the party who has issued the debt. Debt collection typically involves multiple steps which can include amicable collection, evaluation, and legal collections. The average number of days for companies in Morocco to pay their bills is high, between 120 and 150 days, and the judiciary system is not effective. It is better to ask for help from someone who knows the local market. The most common payment methods people use are bank transfers, personal guarantees, checks, and bills of exchange.
The debt collection process in Morocco involves pre-legal collection, legal debt collection, and debt enforcement. Initially, reminders are sent through various communication modes to the debtor to get paid or start a payment plan. If this process fails, then the claim is evaluated to determine the best way forward, which might involve debt surveillance, legal collections, or debt enforcement through the bailiff's court. Debitura can help with all three steps in Morocco, including amicable collections with no cure, no pay.
In Morocco, debt collection options include a civil lawsuit if the debt is disputed. Legal actions require a local lawyer. Debt enforcement and insolvency proceedings are also available. There is a fast way to get a Payment Order from the President of the Commercial Court. It is important to have a lawyer help with legal actions. The court system is influenced by the executive power. Insolvency proceedings are court-driven, and all debts become immediately due and payable. Our local partners can help negotiate payment or go to court for a payment order.
The cost of debt collection in Morocco depends 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, we can provide 3 quotes from the best debt collection lawyers in Morocco. The price varies depending on the specific case.
The time it takes to collect a debt in Morocco depends on the debtor and the case. If it's solvable in the pre-legal phase, it usually takes 3-6 months. However, if legal action is required, the process typically takes 12-18 months. The length of time varies, but we always aim to resolve cases as quickly and effectively as possible.