international debt collection
Definition
International debt collection is the process of recovering money owed to you by a customer or business located in another country. This gets complicated quickly because different countries have different laws governing how and when you can collect a debt, and you often need local legal help in the debtor's country to actually enforce your claim. The whole process tends to cost more and take longer than collecting a domestic debt.
Example
If a retailer in Germany orders $50,000 worth of your products and then refuses to pay, you would need to pursue international debt collection by potentially hiring a German attorney or a specialized collection agency that operates in Europe to recover that money.
Watch Out
Before you extend credit to any foreign customer, get a signed contract that clearly states which country's laws govern the agreement, because this one detail can make or break your ability to collect if things go wrong.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.