Partnering with international companies can be a fantastic way to expand your product lines and market share, but concerns about enforcing contracts and collecting on debts cause many businesses to hesitate. You might have heard that debt collection is nearly impossible across international lines or will be so costly that it’s not worth the trouble. Fortunately, in today’s global economy, collecting international debts is easier and more cost-effective than ever.

3 Common Myths About International Debt Collection

1. You Have to Take Action in the Debtor’s Country

Most contracts have a jurisdiction clause that allows you to start court proceedings in your own state, regardless of where the other party is located. Then, your attorney or debt collection company will have to convince a court in the other country to enforce the order, which is fairly simple, especially since more countries around the world work with international partners.

2. You Should Just Write Off the Debt Instead of Pursuing Collection

Writing off international debts will lower your tax burden, but the savings on your taxes will never equal the amount you’re owed. Losses on your balance sheet can also impact your ability to secure loans and gain new investors, so it’s always best to pursue collection whenever possible.

3. Fees Will Consume the Debt

Many business owners assume that bank charges and debt collection fees will completely consume the payment, making the process seem less than worthwhile. However, experienced debt collection agencies stake their reputations on providing results for their clients, so they will always take the most cost-effective approach. While they will take a commission for their services, you can expect to receive the majority of the funds you’re owed.

If you’re expanding into an international market, Joseph, Mann & Creed in Twinsburg, OH, is a partner you can trust. Since 2001, their debt collection specialists have helped companies across the country recover unpaid debts from parties all over the world. Visit their website to learn more about their debt collection services, call (216) 831-5626 to find out how they can help your business succeed, and stay in touch on LinkedIn.