How to Hire a Debt Collector for International B2B Debts

Hiring a debt collector sounds simple. Find an agency, sign an agreement, hand over the file. In practice, the decision involves questions that most businesses don't think to ask until they've already made a choice they regret.

This is particularly true for international B2B debts. Collecting a commercial debt from a Spanish company requires different capabilities than collecting a domestic consumer debt, and the agency that's right for one is almost certainly wrong for the other.

Before You Hire: What to Decide First

Do you actually need a collector? If the invoice is 30 days late and the client has a history of paying, a direct conversation may resolve it. If the invoice is 60+ days late, the client has stopped responding, or the amount is significant enough to affect your cash flow, professional collection is warranted. The longer you wait past 60 days, the lower your recovery probability and the more you'll wish you'd started earlier.

What jurisdiction is the debtor in? This determines everything. A debt owed by a Spanish company requires a collector with physical presence in Spain, knowledge of Spanish commercial law, and the ability to file in Spanish courts. An agency based in your country that "covers" Spain through a referral network is adding a layer of cost and communication without adding collection capability.

Is it a B2B or consumer debt? Different legal frameworks, different techniques, different agencies. This guide covers B2B — commercial debts between businesses. If you're collecting from an individual consumer, different regulations apply.

What to Look For in a B2B Debt Collector

Physical presence in the debtor's country. For Spanish debts, this means offices and staff in Spain. Ask where their office is. Ask who will handle your case. Ask whether that person speaks Spanish and has access to Spanish courts. If the answer involves forwarding your file to an unnamed "local partner," keep looking.

No-win, no-fee terms for amicable collection. Standard in the industry. You pay a commission (typically 5–15% for commercial debts) only on money actually recovered. No upfront fees for case opening or administration. If an agency charges upfront fees for the amicable phase, the model isn't truly contingency-based.

Integrated legal capability. Amicable collection resolves most commercial debts, but when it doesn't, the transition to legal proceedings should be seamless. The agency should either employ attorneys in the debtor's jurisdiction or have a formal, established relationship with a law firm that handles their litigation. Ask about legal escalation before you need it.

Transparent cost structure. Commission rates for amicable collection, fixed fees for legal proceedings, court costs, and who pays what at each stage. Get this in writing before signing. The most common dispute between creditors and agencies involves unexpected costs that weren't clearly allocated upfront.

The Engagement Process

Initial assessment (days 1–3). You provide documentation — contracts, invoices, delivery proof, correspondence. The agency reviews it and provides an honest assessment of recoverability. A reputable agency declines cases they don't expect to win.

Engagement letter. Defines the scope, commission rate, exclusivity period (typically 3–6 months), cost allocation for legal proceedings, and reporting frequency. Read it carefully. Pay attention to termination clauses and what happens to ongoing cases if you end the relationship.

First contact (48–72 hours). A competent agency contacts the debtor within days of engagement. Two weeks to open your file is two weeks of your recovery window wasted.

FAQ

How do I know if the agency is legitimate?

For agencies operating in Spain, check their registration with the Registro Mercantil (commercial registry), verify their office address, and ask for client references. Membership in industry associations (e.g., FENCA for European collectors) suggests professional standards. But the best verification is a specific conversation about your case — a legitimate agency asks detailed questions about your documentation and the debtor before committing to take the case.

Can I hire a collector if the debt is disputed?

Yes, though the approach differs. Disputed debts require more investigation and may proceed to legal resolution faster than undisputed debts. A competent agency assesses whether the dispute is genuine (quality issues, delivery problems) or tactical (raised months after delivery solely to delay payment). The distinction matters for both strategy and success probability.