UK companies are having to resort to legal action to pursue overseas customers for money
Businesses in the UK are falling victim to late payers overseas according to Lovetts, a debt recovery law firm.
Since July 2009 businesses have suffered a sharp rise in overseas customers defaulting on due payments, said the firm.
Trevor Philips, Director of Sales and Marketing for Lovetts said: “We have seen the demand for our overseas debt recovery services grow significantly (19%). The average value of the debt being chased is in excess of £5,000 so is by no means insignificant.”
The challenge for exporters is to ensure rigorous processes are in place to tackle late payment when the debtor may be on the other side of the world and operates in a completely different language, added Philips.
“The best strategy for any contract with an overseas business is to ensure you do the groundwork first – know who you are dealing with by using credit and identity checks - and agree the terms and conditions of payment leaving no room for miscommunication through language difficulties.”