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Debt Collection in Mexico – A List of Things Before You Begin

  • Debt Collection Mexico

Companies doing business in Mexico tend to look at debt collection in Mexico from two points of view. One side of the argument sees debt collection in Mexico as too complicated and nearly impossible to do, while the other is lulled into a false sense of security due to the relatively uncomplicated and straightforward ease of collecting debt within the US.

The truth of the matter is debt collection in Mexico falls somewhere in the middle. Having this understanding will better equip you with your efforts when collecting debt in Mexico due to their rules and regulations, which is why we will always recommend you working with a Commercial Collection Agency.

That being said, should you choose to go it alone, use the following criteria as a checklist, per se, to help guide you in your debt collection in Mexico efforts: The size of the debt, the relationship and structure of the debt, documentation of the debt, and the challenges associated with the debt.

Debt Collection in Mexico Criteria:

The Size
The size of the debt owed should be the primary consideration made before pursuing your debt in Mexico. First, determine the size of the debt and what you costs will be associated with the collection process. Collecting debts internationally, especially in Mexico, can be relatively expensive, time-consuming and often times slow going. Look at things from an economic perspective and the weigh the cost of your efforts, especially your time needed, to determine whether your debt collection in Mexico efforts are worth these valuable resources.

The Relationship and structure
As we previously covered in our First article on Collecting debt in Mexico, before pursuing your debt collection in Mexico efforts, it͛s important to determine the relationship of the debt: is it consumer related or commercial? The response rate for consumer based debts is generally very low and less likely to be recovered, while commercial/business related debts tend to be more responsive and are often easier to recover in the collection process. Is the debt from a loan or is it from unpaid invoices or transactions? Also, what is the financial status of your debtor? Is there an interest of the debtor to use your goods or services in the future? Taking all of this into consideration will help you greatly in your debt collection in Mexico effort

The Documentation
Proper documentation is crucial to your debt collection in Mexico efforts. Contract, invoices, order forms, order confirmations, promises to pay, acknowledgments, any and all correspondence are essential in your efforts that will often make or break your chances of recovery, and will should you choose to take a legal route.

The Challenges
Debt collection in Mexico presents many complications, none more so that locating the debtor. Mexico is comprised of large, largely developed and urban areas, as well as obscure and remote locales; the former often present the easiest environment for collection efforts while the latter pose steep hurdles and challenges with your efforts. Turbulent socio-political changes within the country of Mexico affect areas differently making the rural locales the hardest affected.

Should you choose to go it alone and not use a commercial collections agency like The Stevens Lloyd Group, LLC in your debt collection in Mexico efforts, the above items – The challenges you face, having the proper documentation, the relationship and structure, and the size of the debt – are all things that are imperative for you to check off your list before you begin

Should you choose to go it alone and not use a commercial collections agency like The Stevens Lloyd Group, LLC in your debt collection in Mexico efforts, the above items – The challenges you face, having the proper documentation, the relationship and structure, and the size of the debt – are all things that are imperative for you to check off your list before you begin

Questions? Give us a call Toll-Free: (888) 882-2282

Are a business owner attempting to tackle debt collection in Mexico on your own? Using a reputable collection agency can often help make things easier relieving you of unnecessary burdens . Turning accounts over to an agency for collection may seem like signaling defeat or throwing in the towel to some collectors. Rather than take the defeatist attitude of ͞I can͛t collect this on my own,͟ take the attitude that collection is a team effort with you and your outside agency working together.

We invite you to give The Stevens-Lloyd Group, Inc. a try…
Place an account with us right now and see what we can do for you!

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Once it’s sent, you’ll be on the road to discovering The Stevens-Lloyd Group, Inc. difference!

If you are a business owner trying to collect on past-due accounts, you may find the process quite frustruating. Turning accounts over to a collections agency may seem like a desperate step. But debt collection is a team effort, with you and the collection agency working together to accomplish the same goal: recovering your money. Contact The Stevens-Lloyd Group today so we can start working together right away.