Recovery rates vary from 30% to 80% depending on the method used. Here are the approaches ranked by effectiveness for B2B commercial claims.
The single most effective approach: placing the claim with a professional B2B collection agency within 90 days of the due date. Recovery rates: 50-70%. Cost: contingency fee only (no cure, no pay).
A demand letter in the debtor's language, from a local address, citing specific enforcement mechanisms available in the debtor's jurisdiction. Response rate: 3-5x higher than translated English letters sent from abroad.
Germany's Mahnverfahren, Belgium's IOS procedure, France's injonction de payer, Spain's proceso monitorio, Poland's EPU. These procedures produce enforceable titles in 2-8 weeks for documented, undisputed claims at minimal cost.
In the UK and Singapore, statutory demands create a presumption of insolvency if unpaid within 21 days. The most effective pre-litigation tool in common law systems.
Where available (France, Spain, EU-wide), freezing the debtor's assets before judgment removes the debtor's ability to dissipate assets and creates immediate payment pressure.
Internal follow-up emails after 180 days. Generic English-language letters to non-English markets. Threats without the infrastructure to follow through. Waiting for the debtor to call back.
Our debt recovery agency with over 21 years of experience provides: Business to Business Collections Services, Legal Debt Collections and worldwide Skip Tracing services.
