Top-Rated Debt Collection Agency in Senegal
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Recovering your debt in Senegal is easiest through this way.
Debitura is a specialized agency in debt recovery in Senegal. Our team of experienced professionals provides a wide range of services, including accounts receivables management, debt collection notices, pre-legal and legal debt collection, as well as enforcement court proceedings. We specialize in Senegal's debt collection laws and regulations to deliver efficient and effective solutions that aid businesses in recovering their outstanding debts.
We offer unwavering assistance throughout the entire process.
Tailored debt recovery approach.
"500+ experts available for debt collection on a global scale."
We have a success rate of 87% with the most affordable cost.
The ultimate guide about debt collection in Senegal
If you have money that you are owed from a business or customer in Senegal, you have come to the right place! We have helped many other businesses get their money back from people who owe them.
It can seem impossible to collect a debt in Senegal. Language, culture, and distance all make it hard.
When you use a collection agency that knows the laws and customs of the country where the debtor lives, it is easier to get your money back.
At Debitura, we put people first. This means that we try to get your money back while still keeping a good relationship with the customer. Our public relations efforts are fair and firm. This ensures that your reputation is our top priority! If you want to collect the debt yourself, read this guide to understand the process from start to finish. If you prefer working with a local law firm that specializes in debt recovery in Senegal, we can help you with that too.
At Debitura, we provide an easy way for you to collect debt in Senegal 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 Senegal. We use both people and technology to get the results you need. This includes using the latest tech-driven solutions and maintaining good customer relationships. We also have a network of debt collectors, attorneys, suppliers, and vendors that we work closely with to get the job done. We value all of these relationships equally.
Get started on debt collection in Senegal today for free by creating a profile and uploading your case in just 2 minutes.
During the initial 3 months, we will use our established pre-legal recovery process to attempt to collect your claim. Our services operate on a 100% no-cure-no-pay basis.
If your claim remains unpaid after the pre-legal phase, we offer you three quotes from our nearby debt collection attorneys.
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Senegal
Having trouble being paid by your customers from Senegal? Do not worry, we can help you get the money that you are owed.
The person who owes money is called the debtor. The person who gave the debtor money is called the creditor. If the creditor collects the debt, this is first-party collection. If someone else collects the debt for the creditor, this is third-party collections.
- People in Senegal usually take 30 days to pay their bills, even though they are supposed to pay within 60 days.
- If you are late on your payments, the company can charge you extra money for the legal rate of interest. This is in addition to any other charges that might happen.
- The Civil Law in Senegal is based on the French Civil Law. This means that it includes case law and customary law adaptations.
Days Sales Outstanding (DSO)
The payment terms usually say that you have 30 days to pay, but this is not always respected. In practice, you will usually have 60 days to make a payment.
Main corporate structures
There are a few different types of companies in Senegal, but the two that are used most often are SARL and SA entities.
- A Limited Liability Company (Sociétés à Responsabilité Limitée, or SARL) is a company type that has gotten easier to create recently. You need about EUR 150 to start the company. The company can have just one partner who owns all of the shares, or it can have several partners. SARL is the most common type of entity because it offers more flexibility.
- A Public Limited Company is a company that has either a General Director or a Board of Directors. This type of company is often used by larger companies because it offers rules and protection to the shareholders. The minimum amount of money required is CFA approx. EUR 15,000. The company should also appoint a statutory auditor from the association of statutory auditors and accountants. This type of company is more reliable if the statutory auditor does his job according to accounting standards.
- Another type of company is Sole Proprietorship. This is when one person registers to do business. This type of company is very popular in Senegal and is designed to help small businesses grow. However, many of them are not willing to develop into LLC or PLC. Although they should submit financial statements, the accounting documents required from Sole Proprietorship are less restrictive.
The debt collection process in Senegal
The process of collecting debt in Senegal usually happens in several steps. The picture shows the standard way to collect debt in Senegal:
1 Upload your claim:
If you want someone to help you get your money back, you will need to find a debt collection partner. You can upload your claim to their website. Debitura will help you for free by giving you 3 quotes from local partners in the African country where your case is located.
2 Amicable collection:
The collection process begins with sending friendly reminders to the person who owes you money. This is called the debtor. The reminders go through email, SMS, and other ways of communication in different countries. The goal is to get the debtor to pay or agree that they owe the debt, and then start a plan to pay it back. Debitura offers a no-cure-no-pay solution for amicable collection. Amicable means friendly. This means that you only have to pay a small success fee if we help you recover your debt. There is no risk in using Debitura's services!
If the person you lent money to 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:
If you are owed less than 2.000-5000€, it is often not worth it to take more legal actions. In this case, we recommend "debt surveillance." This means that we will keep trying to contact the person who owes you money and try to reach an agreement.
B: Legal collections:
It's a good idea to use the legal system if you have a big claim. The way to do it will be different depending on what you are claiming and how much it's worth. Usually, it will take around 1 and a half to 1 and a half years.
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 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 Senegal.
Amicable collection in Senegal
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 send your debtor a message through different ways in Senegal. This might be through email, text, letters, calls, or social media.
The goal of this process is to either:
A) get the debtor to pay the full amount, or
B) get the debtor to agree that they owe the money and start a plan to pay it back.
If the person you are trying to get money from has said that they do not owe you money, you cannot try to resolve this peacefully. You must go directly to legal collections.
Late Payment Interest
The law allows creditors, or people who you owe money to, to charge you more money if you do not pay them on time. This is called interest. The OHADA Treaty is a set of rules that Senegal has agreed to that say what businesses can do when they make a sale, including what happens if someone does not do what they are supposed to do or if there is a problem with the contract. If someone owes money and does not pay on time, the creditor can charge extra money based on the legal interest rate. This is in addition to any other damages that might be caused by not paying on time.
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amicable debt collection
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Legal collection in Senegal
If the other person has not paid you yet, or if they say they do not owe you money, we will give you 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 Senegal. This payment order can then be used to enforce your claim via enforcement court.
If the case goes to court, the person who owes money must get a lawyer. The lawyer will write a letter telling the person to come to court. The lawyers will talk to each other and then the judge will make a decision. If someone does not like the decision, they can ask another court to look at it within one month.
The business law in Senegal is based on the OHADA Treaty, which has been ratified by 17 African countries. The OHADA Treaty is important because it helps to French-speaking countries except for Bissau Guinea and Equatorial Guinea.
Senegal's laws are based on the original colonial legislation of the French Law. They were introduced in 1830 and have changed since Senegal became independent in 1960. The judicial structure of Senegal consists of:
- The Courts of Instance and the Courts of Great Instance are responsible for common law matters, which include criminal, civil, commercial, social and administrative law. These courts make decisions on cases that can be brought before the Court of Appeal if the decision is contested.
- The Courts of Appeal in the Courts of Great Instance and Tribunal of Commerce can be thought of as the court of second instance. This means that it hears cases that have been appealed from a Court of First Instance.
- The Supreme Court is the court that makes the final decision when people appeal cases from lower courts.
- The Common Court of Justice and Arbitration is the last place to go for countries that are signed to the OHADA Treaty.
Legal fees depend on how complicated your case is and how big your claim is. To get the best price, ask for quotes from more than one attorney. You can do this easily by using Debitura.
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legal debt collection
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Debt enforcement in Senegal
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 Senegal to get your money.
A judgment is enforceable when it becomes final and definitive. The successful party may then ask the court to order enforcement proceedings.
The steps you need to take and the cost of taking those steps will depend on your specific situation. You can upload your case information to Debitura, and they will give you three quotes for your claim within 24 hours.
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Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in Senegal
- The OHADA treaty uniformizes bankruptcy and insolvency law/regulation.
- There are no out-of-court bankruptcy proceedings to reduce the court’s caseload from the time the liquidator is nominated.
- A creditor can request the bankruptcy of a debtor when debtor has stopped making payments (‘cessation de paiement’) and is unable to pay the due debts. This is said to be the case when the assets cannot cover the debts. The debtor can oppose the request for bankruptcy as filed by creditor, or can also voluntarily request its own bankruptcy if it is insolvent.
- Often a debtor company which has become insolvent goes bankrupt, but it can undergo a judicial restructuring process (‘redressement judiciaire'). The court will then look into possibilities to restructurethe insolvent party by giving it time discuss possible solution with all creditors involved. If this not considered possible, court will proceed with bankruptcy proceedings.
The analysis is concluding that the risk of doing business in Senegal 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 Senegal well. If possible, provide a short credit period or even better upfront payment. The medium risk score is based on the following factors:
The economic risk in Senegal
Our conclusion based on the economic risk factors, is that the economic risk in Senegal is high (5 out of 6). An economic risk of 5 out of 6 is pretty average in Africa.
GDP and economic growth are critical drivers for economic risk.
The GDP of Senegal is 27,63 bn. USD (2021), growing by 6,06% per year.
In terms of the size of its economy, Senegal ranks #100 out of 183 countries and has a medium-sized economy.
In terms of growth rate, it is ranked #59 out of 183 countries and is therefore considered a fast-growing economy.
GDP per capita is 1606 USD, ranking Senegal number #142 out of 183 countries. The result of this is purchasing power of citizens in Senegal is low compared to the rest of the world.
You get a more detailed idea of GDP and economic growth in Senegal 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 Senegal in the table below:
The business environment risk in Senegal
Our analysis shows that the business environment risk in Senegal 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. Take a look at the important facts for Senegal in the table below:
As you can see in the table, the property rights index is 50 in Senegal, which is considered pretty average in Africa.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 54 in Senegal, a pretty average score for a country in Africa.
Senegal'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 Senegal
The political risk in Senegal 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 critical drivers for political risk. An overview of Senegal 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 Senegal, the rule of law index is at -0,36 points, with the score going from -2.5 (weak) to 2.5 (strong). Senegal 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 weak control of corruption, the weak political stability index, and the large shadow economy that is 33,68% of Senegal's GDP.
The commercial risk in Senegal
In Senegal, 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 Africa.
The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Senegal in the table below:
Senegal has a negative trade balance of -18,63% of GDP. This means that Senegal imports more goods and services than the country exports.
The annual growth of exports of goods and services has been growing 14,74% annually - now 22,32% of GDP. Import of goods and services represents 40,95% of the GDP in Senegal.
The financing risk in Senegal
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 extra information for Senegal in the table below:
In Senegal, 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 Senegal is medium-high.
This makes it easy for you to understand the credit risk of your counterpart in Senegal. 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.
Senegal Debt Collection: Frequently Asked Questions (FAQ)
To collect debt in Senegal, the creditor can use first-party or third-party collections. People in Senegal usually take 30 days to pay bills, even though they are supposed to pay within 60 days. A debt collection partner can help with the process, starting with amicable collection and escalating to legal collection or debt enforcement if necessary. Debitura offers a no-cure-no-pay solution for amicable collection and can help with all three steps in Senegal.
The debt collection process in Senegal typically involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection involves friendly reminders and a plan to pay back the debt. Legal debt collection is advisable for sizable claims and can take up to 1.5 years. Debt enforcement involves obtaining the money through the bailiff's court. Debitura can assist with all three steps to help you recover your debt.
In Senegal, if a debt is disputed, a civil lawsuit is required. Legal options for debt collection include debt enforcement, insolvency proceedings, and local lawyer representation. The OHADA Treaty uniformizes bankruptcy and insolvency law/regulation. Legal fees depend on the case's complexity and the amount claimed. The judicial system consists of courts responsible for criminal, civil, commercial, social, and administrative law. The Supreme Court is the final decision-maker in lower court appeals. Ask for quotes from more than one attorney for the best price.
The cost of debt collection in Senegal varies depending on the case. Here at Debitura, we offer a no-cure-no-pay model for pre-legal collection, with a success fee between 10-20%. The cost for legal action varies based on your case and desired actions, but Debitura can provide 3 quotes from the best debt collection lawyers in Senegal.
The time it takes to collect a debt in Senegal varies depending on the debtor and the case. If the issue can be resolved during the pre-legal phase, the process usually takes 3-6 months. However, if legal action is necessary, it typically takes 12-18 months. The duration ultimately depends on the complexity of the case and the debtor's willingness to cooperate in settling the debt.