Debt collection Azerbaijan
Azerbaijan economy is dependent on oil and natural gas that makes the biggest part of Azerbaijan export. Azerbaijan though have the strongest economy between so called Caucasian states (Georgia, Armenia, Azerbaijan).
The main partners in foreign trade are Turkey, Russia, China and Taiwan, though some EU countries (France, Italy, Germany) keeps considerable share of Azerbaijan export.
Azerbaijan government actively supports both internal production and export.
Azerbaijan culture is oriental but for decades it was under strong influence from Russia because of being part of Russian empire, USSR and then CIS. Nevertheless now western culture and business practice are getting considerable impact, especially in the cities.
National language is Azerbaijan from Turkic languages group. Older people, businessmen and population of cities speaks Russian, though generally share of Russian language is decreasing. In the opposite, English is spoken by young people, businessmen and its share is quickly growing.
The main challenges to collect debt in Azerbaijan are:
- Cultural and ethnic barrier requires more efforts to establish trust and communication with debtor in Azerbaijan.
- Tight connections between family clans and business requires knowledge of “who is who” to find correct approach and real decision makers.
How to collect debt in Azerbaijan?
Amicable collection is the most effective and cost-saving way to recover debt in Azerbaijan. It is advised to refer case to collection when the debt is delinquent over 3 months. The less delinquency is the more chances to collect debt are.
Amicable collection is still possible even after statute of limitations for commercial contracts (3 years) expired, though chances to collect in such case would be very small.
What we do to recover a debt in Azerbaijan?
- study case details
- find core reason of failing to pay
- find debtor’s decision makers and financial controllers
- resolve language and cultural issues to reach payment agreement between creditor and debtor
- resolve legal and administrative problems to facilitate pending payments
- consult in finances to enable debtor to pay
- consult in local legislation and business threats to convince debtor to pay
How long it takes in Azerbaijan?
Average time to recover debt in Azerbaijan is 72 days.
What the fees are?
The success fee makes 12% commission from any amount recovered.
No collection – no fee policy applies.
- we have local connections that are crucial to establish good contact with debtor based in Azerbaijan.
- we know local Azerbaijan laws and customs
- we understand local Azerbaijan languages
- we charge no fees, unless debt is recovered
- we provide operative reporting
How to send case?
- Send your unpaid invoices and supporting documents for our review.
- Sign our debt collection contract and POA received from the manager.