Top-Rated Debt Collection Agency in Togo
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Recovering your debt in Togo is made easy.
Debitura focuses on debt recovery in Togo, providing a range of services such as accounts receivables management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. Our team of experienced professionals understands the regulations and laws governing Togo's debt collection, enabling us to offer efficient and effective solutions to businesses looking to recover unpaid debts.
We offer unwavering assistance throughout the entire debt collection process.
Tailored debt recovery plan.
We have over 500 specialists available for worldwide debt collection.
At the lowest cost, we have a 87% success rate.
The ultimate guide about debt collection in Togo
Are you having trouble getting money from a business or customer in Togo? You've come to the right place! We've helped many other companies get their debt paid back from people in Togo.
Collecting money in Togo can be difficult because of language and cultural differences, laws and traditions that are different from yours, and the distance between you and the debtor.
When you use a collection agency that is familiar with the laws and customs of Togo, it makes the process of getting your money back easier.
At Debitura, we prioritize people's needs and do everything we can to get your money back while still keeping a good relationship with your customer. We use fair, but firm methods to make sure that your reputation is protected.
Keep reading this guide if you want to learn how to collect debt on your own in Togo. If you would rather work with a local law firm that specializes in debt recovery in Togo, we can help you with that too.
At Debitura, we make it easy for you to collect money that is owed to you in Togo and over 190 other countries. All you have to do is upload your claim and within 24 hours, we will evaluate your situation and give you three options from local debt collection lawyers in Togo. We use a combination of personal care and advanced technology to achieve success and maintain good communication. Our way of doing things is thorough and helps you get what you need while still keeping a good relationship with the person who owes you money. We also have a network of people who help us collect debt, like lawyers and vendors. We value all of our connections, big or small, and they play a big role in helping us accomplish our goal.
Easily begin debt collection in Togo today at no cost. Simply create a free profile and upload your case in just 2 minutes.
Within the initial 3 months, we'll utilize our successful pre-legal recovery method to seek payment for your claim. And, we guarantee a 100% no-cure-no-pay policy.
If your debt remains unpaid during the pre-legal phase, we will connect you with three local debt collection lawyers who will provide you with quotes.
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Togo
Are you having trouble getting paid by people in Togo who owe you money? Don't worry, we can make it easier for you.
The person who owes the money is called the "debtor" and the person who is owed the money is called the "creditor." If the creditor collects the debt themselves, it's called "first-party collection." But if the creditor hires someone else to collect the debt, it's called "third-party collections."
- Even though it's stated that payments are supposed to happen within 30 days, it's common for them to actually happen within 60 to 90 days.
- The Civil Law we have today comes from the French Civil Law. So, the rules and laws in our Civil Code are still based on the French Code. But, over time, changes and additions have been made to the original law because of decisions made in court cases and the customs and traditions of our local communities.
- The law doesn't have a way to handle things outside of court, but there are two options for reorganizing debt that creditors can use.
Days Sales Outstanding (DSO)
Even though it's said that payment is supposed to happen within 30 days, it rarely happens on time. Usually, it takes between 60 and 90 days for payments to actually be made.
Common payment types in Togo
In Togo, using bank transfers to make payments is very common. This is because they are quick, safe, and more banks are starting to support them both in the country and around the world. Checks can also be used as proof of debt, as stated in a law called OHADA. This means that a check shows that someone owes money and there is no disagreement about it. This can be helpful for quickly resolving disputes or even for taking legal action, as the court can use the check as evidence. In the business world, using Letters of Credit is a popular option.
Main corporate structures
In Togo, there are different types of businesses, but the most common are SARL and SA types.
- Sociétés à Responsabilité Limitée, or SARLs, are a popular type of company that have been made easier to create. These companies, also known as Limited Liability Companies, don't require a minimum amount of money to start and can be owned by one person or a group of people. They are a flexible option and are commonly used.
- Public Limited Companies, also known as Société Anonyme (SA), are businesses that have either a single leader known as a General Director or a group of leaders called a Board of Directors. These types of companies are often chosen by larger businesses because of the regulations and safeguards they provide for the people who own shares in the company.
- A Sole Proprietorship is a type of business that is registered under one person's name. Usually, there are rules on what kind of business a Sole Proprietorship can do, but these rules are not always followed. For instance, a Sole Proprietor can't get an importer card, but sometimes they still find a way to get one.
- Economic Interest Groups, or GIEs, are not like regular businesses. They are groups of people who come together to help each other with their economic activities. GIEs don't need money to start and don't make money for themselves. However, these types of groups are not very common in Togo.
The debt collection process in Togo
In Togo, there are several steps that are typically followed when trying to collect a debt. The picture below shows the typical process that we use.
1 Upload your claim:
If you don't want to handle your debt recovery on your own, the first step is to find a company that will help you collect it. One option is Debitura, which will give you three options for local debt collection partners in the African country related to your situation. This service is completely free and comes with no hidden costs.
2 Amicable collection:
When trying to collect a debt, we first send friendly reminders through different ways like email, text, and mail. Our goal is to get the person who owes the money to pay or make a plan to pay. We also offer a service where you only have to pay us a small fee if we are able to collect the debt. So, using our company to collect the debt is completely safe and without any risks!
If you haven't gotten paid by the person you loaned money to, even after trying to work it out nicely, it's time to think about what to do next. We will examine how much money is owed, the chances of getting paid, and other important information to help you decide what the best course of action is. There are three common options for what to do next.
If the amount you are claiming is less than $2,000 to $5,000, it may not be worth it to continue with legal action. In these situations, we suggest using "debt surveillance" where we will continuously contact the person you are trying to collect from and try to come to a friendly agreement.
B: Legal collections:
We suggest beginning the legal procedure for bigger demands. The step-by-step procedure varies based on the category and magnitude of your demand. Generally, it is predicted to last for a year and a half to two years.
C: Debt enforcement:
If the person who owes you money agrees that they owe it, or a judge has ordered them to pay, you can use a court officer to make them pay up.
Amicable collection in Togo
At Debitura, we have a way to collect money from someone you are owed from without any risk. All you have to do is give us the information and we will start working on it within 24 hours. We will contact the person who owes you money through different methods, such as email, text, mail, phone calls, and social media.
Our goal is to either:
A) get them to pay the full amount or
B) make a plan to pay it back.
However, if the person who owes you money disagrees with the amount you are asking for, we can't use this friendly method and will have to take legal action.
Late Payment Interest
The rules of the law allow lenders to charge extra money if payments are not made on time. Togo is part of a group called the OHADA Treaty which controls how businesses sell things to each other, including how the sale is set up, what each side must do, what happens when one side doesn't follow the rules, and other important details.
Typically, the extra money charged for late payments is a set percentage, but a judge can decide to change that amount if they think the lender has been hurt more than usual.
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Legal collection in Togo
If the person you are trying to collect money from hasn't paid you during the friendly stage or they disagree with your claim, we will give you three options from different lawyers who can help you collect the debt. During the legal stage, the lawyer will contact the person you are trying to collect from and try to work out a payment plan. If necessary, our partners can also go to court and get a court order for payment, which can be enforced through the legal system in Togo.
The first step in dealing with a debt that is due, liquid and has a specific reason is to ask the president of the court in the debtor's area for an order to pay the debt. This can happen quickly, within 24 hours. However, the debtor has the option to object to this order within 15 days and take the case to court. This process can take up to three months and a decision will be made within four months. If the debtor is not happy with the decision, they have one month to appeal the decision to a higher court.
The second step is for the creditor to go to the commercial section of the court in the debtor's area for a payment action. This process cannot take longer than three months for a decision and an additional month to receive a copy of the decision. The debtor also has the option to appeal this decision within one month to a higher court. This process can take four to six months.
In the first step, if the debtor wants to appeal the decision of the higher court, they can only do so within two months to the highest court.
In Togo, the laws that govern civil matters are based on the laws of France, which means that the Civil Code is still the French Code. However, over time, changes have been made to the original law due to decisions made by courts and traditional customs. Despite these changes, the laws in Togo are still heavily influenced by the French Civil Law.
Since Togo gained independence in 1960, the laws have continued to evolve and change. The legal system in Togo includes:
- Courts of First Instance are the courts that are responsible for handling civil and commercial cases during the initial stage of the legal process.
- The Appeals Courts in Togo handle different types of cases, including those in the civil, commercial, and social chambers. These courts are considered secondary, meaning they only hear cases that were already brought to another court but one or more parties were not satisfied with the outcome. Additionally, the cases they hear involve claims that are worth more than 150 euros.
- The Supreme Court is the top court in the state for legal and administrative issues. It has two sections that listen to appeals from the final courts in cases involving civil, business, social, and criminal matters, among other subjects.
- The Common Court of Justice and Arbitration, also known as the CCJA, is the final court of appeal for all countries that have signed the OHADA Treaty in regards to commercial matters. This court is located in Abidjan, Ivory Coast and is made up of nine judges who are elected for a seven-year term that can be renewed. These judges must be citizens of the member states.
The amount of money you will need to pay for legal services can change depending on how complex and big your case is. To make sure you are getting the best deal, it is a good idea to get quotes from multiple lawyers. You can easily do this by using the website Debitura, which allows you to compare prices from different attorneys with just a few clicks.
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Debt enforcement in Togo
If you have proof that the person you are trying to get money from has agreed to pay you, or if a judge has ordered them to pay, you can ask the court in Togo to make them pay by using a bailiff.
Once the time for appealing a decision is over, it becomes final. The person who won the decision (the creditor) must do some paperwork with the court or court registry to make sure the decision is official. This will depend on what type of decision it is.
After that, the decision needs to be registered and the creditor needs to pay some taxes. If the decision was a punishment, the fee is about EUR 7. If it's about money the person owes, the fee is 5% of the amount of money they owe.
The decision can only be enforced (meaning the creditor can take action to get the money or property they're owed) once all the paperwork is done. The creditor can do different things to make sure they get what they're owed, like taking money out of the debtor's bank account or selling the debtor's things. These actions can be done whether the property is with the debtor or someone else.
The way it works and how much it costs can be different depending on your situation. Send your information to Debitura, and you'll receive three different prices for your request within a day.
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Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in Togo
If the person you lent money to cannot pay you back, the last step you can take is to start an insolvency process. This process is used to sell the borrower's possessions and divide the money among the people they owe, based on how important the debt is.
- The act provides for two types of debt restructuring: preventative settlement and administration/legal redress.
- Preventative settlement is available to individuals and companies pursuing commercial or non-commercial activities and is designed to improve the debtor's financial situation.
- The debtor must file an application to the president of the court and provide information about their debts, cash flow, workforce, and costs.
- An expert is appointed to prepare a report on the debtor's financial situation and to propose measures to the debtor and creditors in an attempt to reach an agreement.
- If the court finds that the debtor's financial situation warrants preventative measures, a judgment will be issued and the composition agreement ratified.
- Administration or legal redress is the second way to restructure debt under the Uniform Act and is used when the debtor files a declaration of cessation of payments to the court.
- The court can order administration or liquidation if the company is found to be insolvent.
The analysis is concluding that the risk of running a business in Togo 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 Togo 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 Togo
Our conclusion based on the economic risk factors, is that the economic risk in Togo 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 Togo is 8,41 bn. USD (2021), growing by 5,26% per year.
In terms of the size of its economy, Togo ranks #142 out of 183 countries and has a small economy.
In terms of growth rate, it is ranked #76 out of 183 countries and is therefore considered a fast-growing economy.
GDP per capita is 992 USD, ranking Togo number #154 out of 183 countries. This means the purchasing power of citizens in Togo is low compared to the rest of the world.
You get a more detailed idea of GDP and economic growth in Togo in the table below:
Another significant influencer for the economic risk score is the inflation rate and the interest rates. You get a more detailed idea of monetary KPIs in Togo in the table below:
The business environment risk in Togo
Our analysis shows that the business environment risk in Togo 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 Togo in the table below:
As you can see in the table, the property rights index is 45 in Togo, 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 61 in Togo, a pretty good score for a country in Africa.
Togo'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 Togo
The political risk in Togo is very high, with a score of 6/6. This is a relatively high political risk score in Africa.
The governance and political stability indicators are critical drivers for political risk. An overview of Togo 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 Togo, the rule of law index is at -0,56 points, with the score going from -2.5 (weak) to 2.5 (strong). Togo 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 31,49% of Togo's GDP.
The commercial risk in Togo
In Togo, 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 Togo in the table below:
Togo has a negative trade balance of -10,91% of GDP. What this means is that Togo imports more goods and services than the country exports.
The financing risk in Togo
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. Additional facts and info can be found for Togo in the table below:
In Togo, the credit information sharing index is 8 on a scale from 0 (low) to 8 (high). The consequence of that number, is that the access and quality of credit information available in Togo is high.
This makes it easy for you to understand the credit risk of your counterpart in Togo. You would be able to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.
Your juridical rights as a creditor are 6 out of 12 and, therefore, weak.
Debt collection in Togo: Frequently Asked Questions (FAQ)
To collect debt in Togo, the creditor can either collect it themselves (first-party collection) or hire someone else to collect it (third-party collection). Payment is often delayed beyond the stated 30 days, typically taking between 60 to 90 days. Bank transfers, checks, and Letters of Credit are common payment methods. In Togo, there are different corporate structures, with SARL and SA being the most common. The debt collection process involves uploading your claim, amicable collection, evaluation, debt surveillance, legal collections, and debt enforcement.
The debt collection process in Togo typically involves three steps: pre-legal collection, legal debt collection, and debt enforcement. First, you can upload your claim and work with a company like Debitura to find local debt collection partners. Then, friendly reminders are sent to the debtor. If that doesn't work, the options are surveillance, legal collection for larger demands, or debt enforcement if the debtor agrees or a judge orders payment. It's important to follow these steps carefully to effectively and lawfully collect unpaid debts.
For debt collection in Togo, the legal options available depend on whether the debt is disputed or not. If the debt is disputed, a civil lawsuit is required. Legal action options include debt enforcement and insolvency proceedings, which require a local lawyer. The legal process involves going to the president of the court in the debtor's area for an order to pay the debt. It can take up to three months with an additional month to receive a decision copy. The laws that govern civil matters in Togo are based on the laws of France, but changes have been made over time. Insolvency proceedings involve selling the borrower's possessions and dividing the money among the people they owe.
Debt collection costs in Togo vary depending on the specificity of the case and desired actions. At Debitura, we offer a no-cure-no-pay model for pre-legal collection with a success fee between 10-20%. For legal actions, the cost depends on your specific case. We can provide 3 quotes from the best debt collection lawyers in Togo to help you choose the best option for your needs.
The duration of debt collection in Togo varies depending on the debtor and the case. If it can be resolved in the pre-legal phase, it usually takes around 3-6 months. However, if legal action is required, the process may take longer, typically around 12-18 months. The timeline largely depends on the circumstances of each case.