What are the benefits of working with a global alliance of local debt collection agencies and law firms?

Working with a global alliance of local debt collection agencies and law firms can offer you many benefits compared to working with a single international debt collection agency or handling the case by yourself. Here are some of the main benefits:

Benefit 1: Local expertise and knowledge of the legal system, culture, language and business practices of the debtor's country.

One of the biggest challenges of international debt collection is dealing with the different legal systems and regulations that govern the debt recovery process in different countries.
Each country has its own laws, rules, procedures and timelines that affect how creditors can pursue their debtors and enforce their claims.
For example, some countries may require creditors to obtain a court judgment before they can take any action against their debtors, while others may allow creditors to initiate arbitration or mediation without going through the court system.
Some countries may have strict data protection and privacy laws that limit the access and use of personal information of debtors, while others may have more relaxed standards.
Some countries may have complex and lengthy bankruptcy and insolvency proceedings that can delay or reduce the recovery of debts, while others may have more streamlined and efficient processes.

Working with a local debt collection partner who is familiar with the legal system and regulations of the debtor's country can help you overcome these challenges and navigate the debt recovery process more effectively and efficiently.

A local debt collection partner will know the applicable laws, rules, procedures and timelines that govern the debt recovery process in the debtor's country.

He or she will also know how to comply with them and avoid any legal pitfalls or penalties that may arise from violating them.
A local debt collection partner will also know how to use the available legal tools and remedies to enforce your claim against your debtor, such as sending demand letters, filing lawsuits, obtaining judgments, executing garnishments, seizing assets, etc.

Another challenge of international debt collection is dealing with the different cultures, languages and business practices that influence the behaviour and attitude of debtors in different countries.
Each country has its own norms, values, beliefs and expectations that affect how debtors perceive and respond to their obligations and creditors.
For example, some countries may have a high regard for contractual agreements and a strong sense of responsibility and honour to fulfil them, while others may have a low regard for contractual agreements and a weak sense of responsibility and honour to fulfil them.

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Some countries may have a high tolerance for risk and uncertainty and a willingness to negotiate and compromise, while others may have a low tolerance for risk and uncertainty and a reluctance to negotiate and compromise.
Some countries may have a direct and assertive communication style and a preference for clear and concise messages, while others may have an indirect and subtle communication style and a preference for vague and ambiguous messages.

Working with a local debt collection partner who understands the culture, language and business practices of the debtor's country can help you overcome these challenges and communicate with your debtor more effectively and persuasively.

A local debt collection partner will know the norms, values, beliefs and expectations that influence the behaviour and attitude of debtors in the debtor's country. He or she will also know how to adapt to them and appeal to them.
A local debt collection partner will also know the language and communication style of the debtor's country.

He or she will be able to communicate with your debtor in his or her native language and use appropriate words, tones, gestures and expressions that convey your message clearly and convincingly.

Example: According to the World Bank's International Debt Statistics 2022, the average recovery rate for creditors in low- and middle-income countries was 29.6% in 2020, but it varied widely across regions and countries.
For instance, the recovery rate was 46.9% in Europe and Central Asia, but only 13.7% in Sub-Saharan Africa.
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Working with a local debt collection partner can help creditors navigate the different legal frameworks and procedures, as well as the cultural and linguistic barriers, that affect the debt recovery process in different countries.

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Benefit 2: Faster and more efficient debt recovery process with lower costs and higher success rates.

Another benefit of working with a global alliance of local debt collection agencies and law firms is that it can speed up and streamline the debt recovery process with lower costs and higher success rates.

When you work with a single international debt collection agency, you may face delays and inefficiencies in the debt recovery process due to several factors, such as:

•  Lack of direct access and contact with your debtor and his or her assets in their respective country.
•  Lack of local presence and representation in your debtor's country.
•  Lack of local expertise and knowledge of the legal system, culture, language and business practices of your debtor's country.
•  Lack of coordination and communication between you, the international debt collection agency and any third parties involved in the case, such as subcontractors, lawyers, courts, etc.
•  High fees or commissions charged by the international debt collection agency or any third parties involved in the case.

When you work with a global alliance of local debt collection agencies
and law firms, you can avoid these delays and inefficiencies in the debt recovery process due to several factors, such as:

•  Direct access and contact with your debtor and his or her assets in their respective country.
•  Local presence and representation in your debtor's country.
•  Local expertise and knowledge of the legal system, culture, language and business practices of your debtor's country.

•  Better coordination and communication between you, your contact person and any other members of the global alliance involved in the case.

•  Lower fees or commissions charged by your contact person and any other members of the global alliance involved in the case.

By working with a global alliance of local debt collection agencies and law firms, you can save time and money in the debt recovery process and increase your chances of recovering your payments.

Statistic: According to a survey by CISDRS, an international debt collection agency, the average duration of a debt collection case handled by their global alliance of local debt collection agencies and law firms was 3.5 months, compared to 6.8 months for a case handled by a single international debt collection agency.

The survey also found that the average success rate of their global alliance was 72%, compared to 54% for a single international debt collection agency. The survey attributed these results to the faster and more direct communication, coordination and action between the creditor and the local debt collection partner.

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Benefit 3: Better communication and coordination between the creditor and the debt collection partner.

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A third benefit of working with a global alliance of local debt collection agencies and law firms is that it can improve the communication and coordination between you and your debt collection partner.

When you work with a single international debt collection agency, you may face communication and coordination issues due to several factors, such as:

•  Language barriers that may cause misunderstandings or misinterpretations of your messages or instructions.

•  Time zone differences that may cause delays or difficulties in reaching or responding to each other.

•  Cultural differences that may cause conflicts or disagreements in expectations or preferences.

•  Lack of transparency or accountability that may cause confusion or distrust in the status, actions or results of your case.

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When you work with a global alliance of local debt collection agencies and law firms, you can avoid these communication and coordination issues due to several factors, such as:

•  Language proficiency that allows you to communicate with your contact person in your preferred language and understand each other clearly and accurately.

•  Time zone compatibility that allows you to reach or respond to each other promptly and conveniently.

•  Cultural sensitivity that allows you to respect and accommodate each other's norms, values, beliefs and expectations.

•  Transparency and accountability that allows you to have more control and visibility over your case and receive regular updates and feedback from your contact person.

By working with a global alliance of local debt collection agencies and law firms, you can have a better relationship and collaboration with your debt collection partner.

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Our international debt collection agency, offers a web portal for their clients to access real-time information on their debt collection cases, such as the status, actions taken, payments received, etc. The web portal also allows their clients to communicate directly with their local debt collection partner in their preferred language and time zone.

This way, their clients can have more control and visibility over their debt collection process and receive regular updates and feedback from their debt collection partner.

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