Why Debt Collection is Important in Turkey?

When your Turkish customer delays a payment to your company, it generates a shortage in your cash flow. Because it is an international customer, it gets more complicated and you may not know exactly what to do. You try to contact with the Turkish debtor by phone but its generates additional and unexpected costs for you. You may hire additional personnel to focus on this issue, but this also means extra costs for your company. You may ask yourself one of these 4W + 1H questions;

‘How long I should wait for my Turkish customer to make a payment?’

‘When will my Turkish client pay the outstanding invoices?’

‘What I can do to collect my debts from a Turkish company?’

‘Why does my client in Turkey not answer my calls and return my emails?

‘Where can I go if my Turkish customer keeps delaying the payments?’

You might feel lost and think that nobody can assist you besides a Turkish lawyer to collect the debts but also would ask high legal fees and attorney costs.

No, you are not alone and there is an ‘alternative’ solution for you; the opportunity to collect your outstanding debts via a Turkish collection agency. ARS Consultancy is the only debt collection agency in Turkey, which is specialized in ‘international cases only’. Since 2011, we have been helping our foreign clients to manage their receivables in all 81 cities of Turkey. You can also benefit from our risk-free services of debt recovery in Turkey.

Take No Risks with No Recovery No Fee Model

We do understand and value our clients when they decide to avoid upfront fees. Plus, we have confidence in our abilities to reach an amicable settlement and manage debt recovery before legal action. For both reasons, we offer our debt collection services on a contingency basis. In other words, no recovery no fee. Our debt collection services become payable only after we collect money from your Turkish customers and only from the recovered amount.

For example, let’s assume your Turkish clients owes you 30.000 USD and we agreed with you to work with %20 commission. If the debtor pays 10.000 USD (i.e. as a first installment) to your bank account, then we, as your local collection agency in Turkey, will ask only %20 from that recovered amount and our service fee will be 2.000 USD. Of course, we are much eager than you to collect the highest amount in the shortest time span. But you will not face with any extra or surprise fees if there is no debt recovery.

In sum, debt collection is necessary for your business to continue working normally without affecting your cash flow and without incurring in additional costs.

Time Management: The Main Advantage in Debt Collection

The main advantage of debt collection is that it an be done at the pre-Legal stage and this is perhaps the most important feature that not everyone can realize. At pre-legal stage both sides enter in a negotiation process without taking the process to court. With the involvement of a 3rd party, like a debt collection agency as ARS Consultancy, both sides pay extra attention to support their claims with evidences. This enhances our dedication to reach an amicable solution between parties and of course with prioritizing the interests of our clients first.

Finding a solution in the pre-legal stage has the main advantage of concentrating efforts on quick and affordable solutions both for the creditor and the debtor. In many cases, we witnessed situations where the Turkish debtor is willing to negotiate but the creditor is unaware of the relevant information.

Exploring the real reasons of non-payment of a Turkish debtor and explaining the whole picture to our client facilitates our success. These are among the most important tasks a debt collection experts. Thus there are no information asymmetries and the negotiation turns out to be absolutely transparent. What we do is basically solve the collection problem in your business life with the method of reconciliation and mediation. Based on our years of experience within this field, we proffesionally represent our clients in from of the Turkish debtors and we guide our clients about the best way  to proceed.

KWC: Know Your Client, So Decide Better and Wisely

Another characteristic of debt collection experts is their hight research capabilities. As a creditor, you may not always have complete or reliable information about your Turkish client. When we are assigned with a debt collection case, we make an in-depth investigation about the Turkish debtors or indiviudals prior to our dunning process.

The operation team of ARS Consultancy is also trained to grub around the debtor so we become aware of the profile of the Turkish debtors. We both check all the supporting documents in detail and also use our resources to investigate the contact details of a Turkish company or a Turkish individual who is the debtor in a single debt collection case.

For example, the risk management team of ARS Consultancy always make a detailed skip tracing in order to obtain the most updated contact info of Turkish debtors. Upon request of our clients, we can also provide asset check and credit reports with an additional fee. These might seem not important at the beginning but in the end it shows relevant information for the best decision and strategy to proceed.

How to place a new debt collection case?

The process is simpler than you can imagine. It all starts with just one email to [email protected] or phone call to +90 212 296 9147. A member from our  debt collection team contacts you and guides you how to place a claim at our office. We will also inform you about the procedure and the fastest way to start. Everything is sorted out in a friendly and professional manner.  So do not hesitate to contact the best Debt Collection Agency in Turkey, ARS Consultancy. 

 

Alberto DELGADO

International Debt Collection and Risk Management Exp. Asst. | ARS Consultancy