The decision to engage a professional debt recovery agency is, for many creditors, a last resort. They've sent their own demand letters, made their own phone calls, and extended their own payment deadlines. When they finally contact a recovery agency, the receivable is often aged beyond 180 days, the debtor has stopped communicating, and the creditor's internal team has concluded that recovery is unlikely.

This sequence is backwards. The creditor's internal collection effort consumed the period when recovery probability was highest, and the professional agency inherits the claim when probability is lowest. The creditors who achieve the highest recovery rates reverse this sequence: they engage professional recovery early, when the debtor is still solvent and the commercial relationship still creates leverage.

What professional recovery actually involves

Intelligence gathering. Before any contact with the debtor, a professional recovery agency conducts due diligence on the debtor's corporate structure, financial position, and asset profile. This isn't a credit check — it's a comprehensive assessment that determines the enforcement strategy. The assessment answers three questions: Is the debtor solvent? Where are the debtor's assets? What enforcement instruments are available in the debtor's jurisdiction?

Jurisdictional strategy. International debt recovery is jurisdiction-specific. The instruments available in Germany (Mahnverfahren, Vermögensauskunft) differ fundamentally from those available in France (référé-provision, saisie conservatoire), the UAE (DIFC courts, precautionary attachment), or Brazil (penhora online through BACENJUD). A professional agency matches the debtor's jurisdiction to the optimal enforcement pathway — and has local counsel relationships in each jurisdiction to execute the strategy.

Calibrated engagement. The initial contact with the debtor is conducted by a specialist who understands the debtor's jurisdiction, industry, and commercial context. The engagement is professional, direct, and informed — the debtor recognises immediately that this is not a generic collection call. The debtor is presented with the claim, the evidence, and a clear timeline. The tone conveys that the creditor is organised, capable, and committed to enforcement.

Escalation management. If amicable resolution is not achieved within the initial engagement window, the agency escalates through formal demand, legal notice, pre-judgment attachment applications, and court filings. Each escalation is a deliberate step that increases pressure on the debtor while preserving the creditor's options. The creditor is consulted at each stage and retains the decision to proceed, pause, or withdraw.

The commercial impact

For creditors with significant international receivables portfolios, professional debt recovery is not an expense — it's a profit centre. On a contingency basis, the creditor pays nothing unless recovery is achieved. The recovered funds flow directly to the bottom line, improving cash flow, reducing bad debt provisions, and strengthening the balance sheet.

The indirect benefits are equally significant. A creditor who is known to enforce creates a deterrent effect across their entire debtor portfolio. Debtors who know that non-payment will result in professional enforcement — not additional internal emails — are more likely to prioritise payment. The investment in professional recovery for one debtor creates payment discipline across the portfolio.

The selection criteria

Not all recovery agencies are equivalent. The creditor should evaluate three factors:

Jurisdictional coverage. Does the agency have genuine capability in the debtor's jurisdiction? Genuine capability means local counsel relationships, knowledge of local enforcement instruments, and experience with the local court system. A broker who forwards claims to local agencies without strategic oversight does not provide genuine capability.

Transparency. Does the agency provide real-time reporting on claim status, actions taken, and debtor responses? The creditor should have visibility into the recovery process at all times, and the agency should proactively communicate developments rather than requiring the creditor to chase updates.

Alignment of incentives. Does the agency's fee structure align with the creditor's interest in recovery? Contingency-based fees (no cure, no pay) create the strongest alignment: the agency only earns if the creditor recovers. Agencies that charge upfront fees or retainers have weaker alignment.

If you're managing international receivables internally and wondering whether professional recovery would produce better results, the answer is almost certainly yes. Brief our team with your portfolio for a no-obligation assessment of recovery potential and strategy.