Top-Rated Debt Collection Agency in Nepal
Fast and reliable debt collection in Nepal - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
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In Nepal, recovering your debt is made simple with the easiest methods available.
Debitura focuses on debt recovery in Nepal and offers a wide range of services, such as accounts receivables management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. Our experienced professionals have comprehensive knowledge of Nepal debt collection laws and regulations, enabling us to provide effective solutions for businesses to recover outstanding debts efficiently.
We provide constant assistance throughout the entire process.
Tailored approach to debt collection.
We have a team of over 500 professionals who specialize in international debt collection.
Achieving a success rate of 87% at the most affordable cost.
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We are a law firm working since 1998 and have a deep experience in debt collection.
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The ultimate guide about debt collection in Nepal
If you are owed money by a business or customer in Nepal, we can help you get your money back. We have helped hundreds of businesses in Nepal recover their debt.
It might seem impossible to get people to pay back money they owe you if you live in Nepal. There can be a lot of barriers, such as different languages and customs, that make it hard. And sometimes people live far away from each other, which makes it even harder.
It is easier to get your money back when you use a collection agency that knows the laws and customs of the country where the person who owes you money lives.
At Debitura, we care about people. We do everything we can to get your money back while still being fair to the person you borrowed it from. Our efforts are firm but fair- ensuring your reputation is our top priority! If you want to understand the Nepalese debt collection process, keep reading this guide. If you would rather work with a law firm that specializes in debt recovery in Nepal, we can help you with that too.
Debitura is a way to help you get money that someone else owes you. You can start by telling us about your case. We will look at it and then give you three ideas of people who might be able to help you get your money back, all for free. We use both people and technology to get the results you need. This approach lets us manage customer relationships better. In addition, we have a network of debt collectors, attorneys, suppliers and vendors that we work with. We value all of these relationships equally.
Upload claim
Begin the debt collection process in Nepal today without any cost. Within 2 minutes, establish a free profile and submit your case.
Pre-legal
We will attempt to recover your claim using our pre-legal recovery process for the initial 3 months. Our approach is proven to work, and we offer 100% no-cure-no-pay.
Legal
If your claim remains unpaid during the pre-legal phase, we'll offer you three quotes from our local 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 Nepal
Do you have a hard time getting people to pay you back in Nepal? Do not worry; we can help you get paid by your Nepalese customers easily.
The person who owes the debt is called the debtor. The person who issued the debt is called the creditor. If the creditor collects the debt, it is called first-party collection. If someone else collects the debt for the creditor, it is called third-party collections.
The debt collection process in Nepal
In Nepal, debt collection is usually done in several steps. The picture below shows the standard process for collecting debt in Nepal:
1 Upload your claim:
Unless you want to get your money back yourself, find a debt collection partner. This is a person or company who helps people get money that they are owed. You will give them information about the money you are owed, and they will try to get the money for you. If you use Debitura, we will give you 3 quotes from local partners in the Asian country where the person owes you money. This service is free - you do not have to pay us anything.
2 Amicable collection:
Debitura will try to contact the person who owes you money in different ways, like email, text, or letter. We will keep trying until that person either pays you or starts a plan to pay you back. You only have to pay us a small amount if we are successful. So there is no risk for you!
3 Evaluation:
If you have not received payment from the debtor after the amicable phase, it is time to look at other options. We will look at how much money you are owed, the chance of getting paid and other factors to help you decide what to do next. There are three typical next steps:
A Surveillance:
If you owe someone less than 2.000-5000€, it is often not worth it to take legal action. In this case, we recommend that you keep trying to talk to the person you owe money to and try to come up with an agreement.
B: Legal collections:
We suggest that you begin a legal process if you have a big claim. The way it is done will vary based on what you are claiming and how big it is. Usually, it takes around 1 to 1 and a half years to finish the process.
C: Debt enforcement:
If the person you are owed money from has said that they owe you money, or if there is a court order saying they owe you money, you can go to the bailiff's court to get the money.
At Debitura, we can help you with all three steps in Nepal.
Amicable collection in Nepal
At Debitura we offer a 100% risk-free and very efficient process for Amicable collections. This means that you will not lose any money and the process will be quick. To get started, simply submit your claim and we will begin within 24 hours.
We will contact your debtor in Nepal through different methods, such as email, text messages, letters, phone calls, and social media.
The goal of this process is to:
A) get the debtor to pay the full amount or
B) get the debtor to acknowledge the debt and start a payment plan
If the person you are trying to get money from has disagreed with your claim, you cannot try to resolve it peacefully. You must start by going through legal channels.
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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.
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Legal collection in Nepal
If the person you owe money to has not paid you back, or if they disagree that they owe you money, we will give you 3 free quotes from local debt collection attorneys. This is called the legal phase. The attorney will talk to the person you think owes you money and try to work out a plan for them to pay you back. 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.
Legal fees can cost different amounts depending on how hard the case is and how many people are involved. To get the best price, ask more than one lawyer for their rates. 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 Nepal
If you have written proof that the person you are claiming money from owes you money, or a court order, you can go to the bailiff's court in Nepal to get your money.
The process and how much it will cost varies depending on your situation. You can upload your case information to Debitura, and they will give you three different quotes within 24 hours.
Get started with
debt enforcement
Upload your claim and get 3 FREE quotes from our local collection partners.
Our analysis concludes that the risk of doing business in Nepal is medium-high. Based on this medium-high score, we recommend always charging upfront payment or using credit insurance when trading with customers in Nepal, as it may be very difficult to get paid. The medium-high risk score is based on the following factors:
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The economic risk in Nepal
Our conclusion based on the economic risk factors, is that the economic risk in Nepal is high (5 out of 6). An economic risk of 5 out of 6 is relatively high in Asia.
GDP and economic growth are critical drivers for economic risk.
The GDP of Nepal is 36,29 bn. USD (2021), growing by 4,25% per year.
In terms of the size of its economy, Nepal ranks #93 out of 183 countries and has a medium-sized economy.
Looking at the growth rate, it is ranked #96 out of 183 countries and is therefore considered an excellent growing economy.
GDP per capita is 1223 USD, ranking Nepal number #148 out of 183 countries. The result of this is purchasing power of citizens in Nepal is low compared to the rest of the world.
You can see a more throughout picture of GDP and economic growth in Nepal 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 throughout picture of monetary KPIs in Nepal in the table below:
The inflation in Nepal was 4,1% in 2021 which is considered a medium inflation rate.
The business environment risk in Nepal
Our analysis shows that the business environment risk in Nepal is high (5 out of 6), which is a high risk score in Asia.
Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Nepal in the table below:
In the above table, you can see, the property rights index is 38 in Nepal, which is considered 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 62 in Nepal, a quite low score for a country in Asia.
Nepal's overall economic freedom index is 51 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Nepal
The political risk in Nepal is very high, with a score of 6/6. This is a high political risk score in Asia.
The governance and political stability indicators are critical drivers for political risk. An overview of Nepal 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 transacting business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Nepal, the rule of law index is at -0,47 points, with the score going from -2.5 (weak) to 2.5 (strong). Nepal 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 very high political risks are the very weak control of corruption, the very weak political stability index, and the large shadow economy that is 30,22% of Nepal's GDP.
The commercial risk in Nepal
In Nepal, the commercial risk score is 2/4, which in our model is a low score. This low commercial risk score is pretty average compared to the average in Asia.
The commercial risk is influenced by a country's international trade relationships. You can see some of the key facts for Nepal in the table below:
Nepal has a foreign exchange reserve of 9.66 bn. USD.
Nepal has a negative trade balance of -33,39% of GDP. This means that Nepal imports more goods and services than the country exports.
The annual growth of exports of goods and services has been growing -21,08% annually - now 5,21% of GDP. Import of goods and services represents 38,6% of the GDP in Nepal.
The financing risk in Nepal
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 Asia.
The country's banking system, efficiency, and stability influence the financing risk. Additional facts and info can be found for Nepal in the table below:
In Nepal, the credit information sharing index is 5 on a scale from 0 (low) to 8 (high). The result of this is accessibility and quality of credit information available in Nepal is medium.
This makes it not that easy for you to understand the credit risk of your counterpart in Nepal. Unless you have found a good source for credit ratings or know your specific customers well, we suggest charging payment upfront or using credit insurance.
Your rights as a creditor are 10 out of 12 and, therefore, very strong.
Debt Collection in Nepal: Frequently Asked Questions (FAQ)
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In Nepal, debt collection is usually done in several steps starting with finding a debt collection partner. This person or company helps you recover the money you are owed. Next, the partner will try to contact the debtor amicably. If this doesn't work, you will evaluate other options such as surveillance, legal collections, or debt enforcement. Debitura can help you through all of these steps in Nepal.
In Nepal, debt collection usually involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection involves finding a debt collection partner who will contact the debtor and try to get the money owed. Legal debt collection is recommended for larger claims, and takes around 1-1.5 years to complete. Debt enforcement can be pursued if the debtor admits to owing money or if there's a court order. Debitura can assist with all three steps.
In Nepal, if a debt is disputed, a civil lawsuit is necessary. Debt enforcement and insolvency proceedings are also available options. Legal actions require a local lawyer. Debitura can help you get 3 free quotes from local debt collection attorneys and compare prices to find the best option for you.
At Debitura, our pre-legal debt collection services follow a no-cure-no-pay model with a success fee between 10-20%. Legal action prices vary depending on your case and desired actions. We can provide you with 3 quotes from the top debt collection lawyers in Nepal.
The time it takes to collect a debt in Nepal depends on the debtor's cooperation and the case's complexity. Generally, if it can be resolved in the pre-legal phase, collection takes 3-6 months. If legal action is necessary, it may take 12-18 months. Our team will work tirelessly to ensure a speedy and successful resolution.
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