This article focuses on preventive measures companies can take before and during a customer relationship to reduce the risk of debt—and simplify collection if it happens.
How to Set Yourself Up for Success Before a Payment Problem Happens
International customers bring growth.
But they also bring complexity.
Here’s how to reduce your collection risk—before you ever need to call a collection agency.
Check creditworthiness before signing
Use international credit reports to check a company’s:
- Payment history
- Credit score
- Registered financial risks
This one step alone can help you avoid high-risk partnerships.
Improve your contracts
Add clear terms to your agreement to make future collections easier:
- Jurisdiction: Where legal disputes will be handled
- Choice of law: Which country’s laws apply
- Dispute resolution: Should it go to court or arbitration?
- Payment terms & late interest: Be precise
These clauses help you act quickly and confidently if payment issues arise.
Take action when an invoice goes overdue
Don’t wait too long. Here’s a basic escalation model:
- Send a clear, polite payment reminder
- Follow up with a phone call if needed
- Document all communication for future reference
A respectful nudge can solve many issues early.
If it escalates, know the process
If a case must move forward, here’s the path:
- Friendly debt collection phase (reminders, negotiation, etc.)
- Legal action (usually in the debtor’s country)
- Enforcement (only possible if the debtor has assets in that country)
The more prepared you are from the beginning, the smoother this process becomes.
If reminders and follow-ups haven’t worked, you still have options.
At Oddcoll, we help companies recover unpaid invoices across borders—quickly, legally, and with the right local expertise.
