When Debtors Refuse to Pay: How to Select a Debt Recovery Firm in Italy

Posted by george bone on March 8th, 2018

When you sell products or solutions to Italian companies, you should bear in mind that they have one of the most extended payment terms for business-to-business in Europe. If you have been trying to recover money from a buyer who’s significantly in arrears and you feel like you can’t handle it anymore, a collection agency will serve you well. Their solutions are laser-focused on recovering debts that are way overdue. They’ll get in touch with you debtor through email, in writing, and by phone. In extreme situations, they may opt for the legal solutions on your behalf. These debt collection methods work – and have seen these agencies recoup billions of dollars for clients each year.

While there are several respectable and trustworthy recovery firms in Italy, there is a reason why a bad reputation mars this market. Some agencies rely on illegal and unscrupulous methods to recover funds. As with any solution, it’s human to try finding the highest return on your investment in a collection firm for the lowest cost possible. But this decision involves more than entrusting your company to the lowest bidder; it needs keen consideration. When hiring collectors, the cliché “you get what you pay for” is true, and overlooking this can mean getting mediocre results or worse, a damaged reputation.

So, when your debtor refuses to pay, where do you start? Here is how to select debt recovery firm for your debt recovery in Italy.

Consider the experience

Although most debt collection companies are capable of handling diverse industries, it’s great to find out if they have experience dealing with your specific industry. If you’re in municipal government, physician’s office, commercial/B2B, dental practice, bank, hospital, and so on, be sure to inquire up front. They also should have experience in the age or type of debt you’re trying to recover. 20 days past due is a different case than 200 days past due. This also applies to the amount of money in question.

Transparency

The company you work with should be willing to offer an audited or reviewed financials. Some firms have a reputation for using customers as a capital source; you don’t want to fall, the victim. They should also avail information on the recovery process. For example, the exact way they’ll contact your debtor, the frequency, and the manner. Above all, they should be willing to create an independent account where the money will go to once retrieved to cut out the mix up cases.

Communication

A good flow of information ensures peace of mind. You want to work with a company that’s easy to communicate with, and that provides you with clear communication structure. They should avail an explicit fee up front to avoid future surprises. Their terms regarding when and you’ll be paid should also be elaborated. The collections company that you entrust with your debt recovery in Italy should be fully licensed and insured in the country to cut out any barriers to recovering your money.

Resource Box: If you are looking for Global Debt Recovery Services, the author of this article suggests First Collect International.