International debt recovery: what businesses need to know

 Intrum supports businesses with international debt collection across Europe. Intrum supports businesses with international debt collection across Europe and globally, covering over 160 countries. Read more about Intrum's international collection services.

The scale of the late payment problem across Europe

Late payment is not a marginal issue. According to Intrum’s European Payment Report 2026, which surveyed 8,385 businesses across 20 European countries between December 2025 and February 2026, the average share of revenue received late has risen from 11.33 per cent in 2025 to 12.13 per cent in 2026. This is now slightly above the 12.08 per cent threshold that businesses say they can absorb before late payments begin to affect their performance, indicating that the issue is moving from manageable pressure to a material business risk.

These figures should also be read in context. Cultural payment practices and attitudes influence what businesses consider manageable. In Hungary, companies report that 14.52 per cent of revenues are paid late, while in France and Austria the figure is above 14 per cent. The reported sustainable threshold is also higher in these markets, at 14.24 per cent in Hungary, 14.13 per cent in France and 13.77 per cent in Austria. This suggests that higher late-payment levels may reflect market norms and expectations, as well as financial pressure.

The effects reach further than cash flow. In the same research, 57 per cent of businesses said they had missed growth targets because of late or non-payment. 29 per cent of businesses said payment issues had held back investment in strategic growth initiatives over the past 12 months. In addition, 62 per cent reported that the pressure of late payments had caused them to fall behind on paying their own suppliers, creating a chain reaction across supply chains.

For businesses with customers in multiple countries, these pressures compound. A domestic late payment is difficult enough. When the customer is abroad, the path to resolution is longer and the specialist knowledge required is greater.

How does international debt collection work?

International debt collection is the structured process of recovering unpaid receivables from customers located in a different country from the creditor. It draws on a combination of direct negotiation, local legal procedures, and, in some cases, formal enforcement action through the courts.

The process generally follows a sequence of stages. Early-stage contact and negotiation come first. Most recoveries are resolved through direct communication rather than formal proceedings, so the quality of that initial contact matters. If negotiation does not produce results, the creditor’s options depend on the jurisdiction and the terms of the original contract.

Pre-legal collection

Before legal action is considered, a structured pre-legal approach can resolve a significant proportion of outstanding balances. This typically involves written notices, telephone contact and, where appropriate, structured payment arrangements. For many businesses, this stage resolves the matter without the cost and time involved in formal proceedings.

Legal action and enforcement

When pre-legal collection does not produce results, legal action may become necessary. This is where cross-border complexity is most pronounced. Each country has its own court system, its own procedures for obtaining a judgment, and its own rules for enforcing one.

Within the European Union, the European Order for Payment procedure provides a standardised mechanism for uncontested monetary claims across member states. Once obtained, it can be enforced in any EU country without a separate enforcement procedure. This significantly reduces the time and cost of cross-border recovery within Europe.

Outside the EU, enforcement depends on bilateral treaties between countries, or on obtaining a fresh judgment in the local courts. This process can be lengthy, and the enforceability of foreign judgments varies considerably by jurisdiction.

International commercial arbitration

Where contracts include an arbitration clause, international commercial arbitration offers an alternative route. Rather than pursuing claims through national courts, the parties submit the dispute to an independent arbitral tribunal. Awards from recognised arbitral institutions, such as the ICC or the LCIA, can be enforced in over 170 countries under the New York Convention. For businesses engaged in high-value cross-border trade, arbitration clauses are worth considering at the contract stage, not after a dispute arises.

What makes cross-border debt recovery more complex?

Several factors increase the difficulty of international debt recovery compared with domestic collection.

• Jurisdiction and applicable law: Which country’s law governs the contract, and which courts have jurisdiction, are questions that need to be settled before formal action can begin. Without clear contractual terms, this can itself become a source of dispute.
  
  
• Local enforcement rules: Obtaining a judgment in one country does not automatically make it enforceable in another. Enforcement procedures vary, and some jurisdictions offer limited practical recourse.
  
  
• Currency and payment infrastructure: Collecting payment across borders introduces practical complications, from fluctuating exchange rates to limitations on international transfers in some markets.
  
  
• Language and communication: Effective communication with a customer in another country often requires local-language capability, and the absence of it can slow down resolution significantly.
  
  
• Time limits and statutes of limitation: Limitation periods vary between countries. A claim that would still be valid under domestic law may be time-barred in the customer’s jurisdiction. Acting promptly matters.

The role of an international debt collection agency

For most businesses, managing cross-border collection in-house is not practical. The local knowledge required, the language capability, and the legal specialism involved make it more efficient to work with an international debt collection agency that operates across the relevant markets.

An effective agency will combine pre-legal expertise with access to local legal networks, and will be able to advise on the realistic prospects of recovery before significant costs are incurred. Transparency about likely outcomes matters: recovery rates vary by country and by the age of the debt, and understanding what is realistically achievable is important when deciding how to proceed.

Regulatory compliance is also a consideration. Debt collection practices are regulated in every European market, and the standards vary. Working with an agency that understands local compliance requirements and operates to consistent ethical standards across its markets protects the creditor’s own reputation.

Five questions to ask before pursuing international debt recovery

Before instructing an agency or taking legal action, it is worth working through the following questions.

• What does the contract say? Review the governing law clause, jurisdiction clause, and any dispute resolution provisions. These will shape the options available.
  
  
• How old is the debt? Older debts are generally harder to collect, and in some jurisdictions the limitation period may already have elapsed. Acting early improves outcomes.
  
  
• What information do you have about the customer? Current address, contact details, and any information about the customer’s financial position all affect the likely course of recovery.
  
  
• What is the value of the debt relative to the likely cost of recovery? Legal action in some jurisdictions is expensive. For lower-value debts, a pre-legal approach and a negotiated settlement may be more cost-effective than formal proceedings.
  
  
• Is the customer still trading? If the customer has become insolvent, the recovery options are different and the process more complex.

Payment behaviour and the European outlook

The broader economic context is relevant when managing international receivables. Intrum’s European Payment Report 2026 found that close to half of European businesses, 47 per cent, expect the economy in their country to remain flat or to shrink in 2026. In France, that figure rises to 55 per cent. Against this backdrop, businesses in France and across Central and Eastern Europe are reporting higher rates of late payment than the European average.

The report also found that businesses are increasingly taking preventive measures. The proportion requiring customers to prepay has grown from 31 per cent in 2020 to 50 per cent in 2026. Credit checks stand at 39 per cent in 2026, up from 34 per cent in 2020. These trends reflect a growing recognition that credit management, including the management of international receivables, is a strategic activity, not just an administrative one.

Understanding where payment risk is concentrated geographically, and building appropriate credit management processes around those markets, is a more sustainable approach than dealing with individual overdue accounts in isolation.

Learn how Intrum recovers outstanding payments across 160 countries.