How do you collect from a foreign debtor?

Foreign debt collection is the process of collecting a debt from a debtor outside the Netherlands. When a foreign customer fails to pay, collection often seems like a losing battle. Yet, that is rarely the case. In our practice, we succeed in approximately 75 percent of international collection cases — through a structured approach and speed. How do you handle this yourself?

What are the legal implications?

Foreign debt collection requires knowledge of local procedures, statutes of limitations, execution, and potentially insolvency rules. Proof of the claim must be multilingual and complete. Attachment, judgment, and execution follow three different legal systems. Communication with the debtor requires cultural sensitivity. Without structure, debt collection gets bogged down in administrative barriers and escalating costs.

What steps are you taking?

For EU debtors, the EPO (Regulation 1896/2006), small claims (Regulation 861/2007), and EAPO (Regulation 655/2014) apply. Outside the EU, bilateral treaty space applies (Hague Convention on Judgments 2019, individual treaties) and local procedural law. Arbitral awards benefit from the New York Convention of 1958 for worldwide enforcement. Limitation periods vary widely: the Netherlands five years (Article 3:307 BW), Germany three years (Section 195 BGB), England six years (Limitation Act 1980).

What risks and costs do you face?

Statute of limitations can render claims worthless. In the event of bankruptcy, time is lost due to unnecessary proceedings. Insufficient screening leads to proceedings against empty shells. Cultural sensitivity is important: an aggressive tone can destroy room for negotiation, especially in Asian markets. Currency fluctuations between the invoice date and collection reduce net proceeds.

How did a client handle this?

We represented a Dutch supplier with a claim of 120,000 euros against a French company. In the first week after the due date, we sent a friendly reminder; in the second week, a formal demand under Article 6:96 BW; Week four notice of default under Article 6:82 of the Dutch Civil Code with a demand for payment within 14 days. In the absence of a response, an EPO application followed, followed by EAPO on the French bank account. Fully paid within four months, including 8 percent commercial interest (Article 6:119a of the Dutch Civil Code) and costs.

What is your first action?

Set up a collection ladder with clear deadlines. First, amicable collection (reminders, demand letter, notice of default). Gather complete supporting documents. Strictly assess the statute of limitations. In case of no payment: choose the appropriate procedure (EPO, EAPO, arbitration, local litigation). Collaborate with a local lawyer or collection agency. See also our article on International debt collection: what are your options?