Effective Debt Recovery Methods for International B2B Collections

Most guides to debt recovery methods read like a list of things you've already tried: send a reminder, make a phone call, send a stronger reminder, escalate to management. These methods work for domestic collections where the debtor is in your jurisdiction, speaks your language, and faces consequences you can directly impose. They don't work for international B2B collections where the debtor is in Spain and your entire enforcement capability consists of emails.

Effective recovery methods for overseas commercial debts require a different framework — one built around the debtor's jurisdiction rather than yours.

Method 1: Professional Amicable Collection

The most effective recovery method for debts under 90 days old. A locally-based collection agent contacts the debtor directly — in Spanish, with knowledge of Spanish commercial law, and with the ability to visit the debtor's premises. This replaces your team's zero-leverage international correspondence with structured, escalating pressure from a professional the debtor can't easily ignore.

What makes this method effective: physical presence in the debtor's jurisdiction, native-language communication, cultural understanding of Spanish payment behaviour, and the implicit threat of legal escalation from someone who can actually execute it.

Recovery rate: 70–85% for commercially viable debts referred within 90 days of default. Cost: 5–15% of recovered funds on no-win, no-fee terms.

Method 2: Pre-Legal Attorney Demand

A formal demand from a Spanish attorney, sent via burofax (certified mail with legal weight), referencing specific provisions of Ley 15/2010 and the court procedure that will follow if payment isn't made. This is the tipping point for debtors who've been testing whether you'll actually pursue enforcement.

What makes this method effective: the attorney's letterhead signals legal commitment. The burofax creates legally admissible proof of delivery. The specific legal references demonstrate that the creditor understands the Spanish system and has engaged someone who can navigate it.

Recovery rate: resolves a significant additional proportion of debts that resisted amicable collection. Cost: €300–€800.

Method 3: Monitorio Payment Order

Spain's fast-track judicial procedure for documented commercial debts. Filed through a Spanish court with supporting documentation (contract, invoices, delivery proof). The court orders the debtor to pay within 20 days or file a formal objection. Uncontested claims produce enforceable judgments in 30–45 days.

What makes this method effective: it's fast, relatively inexpensive, and produces a legally binding order. The 20-day response window forces the debtor to either pay, object (which requires substance), or accept a default judgment. It converts silence from a viable strategy into a losing one.

Cost: €1,000–€5,000 depending on claim amount. Best suited for debts above €15,000 with strong documentation.

Method 4: Full Civil Proceedings

Reserved for contested debts where the debtor has raised substantive objections or where the monitorio has been challenged. Full adversarial proceedings through juicio ordinario (claims above €6,000) or juicio verbal (below €6,000). Timeline: 6–18 months. Cost: €3,000–€15,000.

What makes this method effective: it provides definitive judicial resolution for debts that can't be settled any other way. For creditors with strong documentation, the outcome is typically favourable. The key question is always whether the debtor's solvency justifies the investment.

Method 5: Judgment Enforcement

After obtaining a judgment (through monitorio or full proceedings), enforcement mechanisms become available: bank account garnishment, seizure of receivables, attachment of physical assets, and property charges. Effective enforcement depends on identifying the debtor's assets — which requires local knowledge and investigative capability.

Choosing the Right Method

The methods aren't alternatives — they're sequential. Start with amicable collection (Method 1). If that fails, escalate to attorney demand (Method 2). If that fails, proceed to monitorio (Method 3). Each stage builds on the previous one and creates the evidentiary foundation for the next. Skipping stages rarely produces better outcomes and usually increases costs.

The decision to stop — to close the case rather than escalate further — is as important as the decision to proceed. Your agency should provide an honest cost-benefit assessment at each decision point.

FAQ

Which method is best for debts under €10,000?

Amicable collection (Method 1) and, if needed, a pre-legal attorney demand (Method 2). Legal proceedings are rarely cost-effective for debts below €10,000–€15,000 unless the documentation is very strong and the debtor is clearly solvent. The small business collections guide covers this in more detail.

How long should I wait before escalating from one method to the next?

Amicable collection should produce results or a clear diagnosis within 30–60 days. If the debtor is communicating and negotiating, extend the amicable phase. If the debtor is silent, escalate to attorney demand within 45 days. The goal is applying the right pressure at the right time — not following a rigid calendar that ignores debtor behaviour.