Debt collection Ukraine
Ukraine has evolved from an agricultural to an industrialized, and then to a service-oriented country. Now it is emerging free market economy.
Though formally being supported by state, foreign trade and investments in fact are subject of strict regulations, especially in terms of currency conversion and international transfers.
Ukrainian main trade partners are from EU, namely Poland, Germany, Italy. Neighborer Turkey and Belarus are important partners as well as China and US outside of region. Despite of tension with Russia it remains important market for Ukraine.
Ukrainian culture is Slavic, closer to western type of culture though it was under heavy impact of Russian culture due to being part of Russian empire and then USSR.
The official language of Ukraine is Ukrainian of eastern Slavic languages group, but fluent Russian is spoken by majority of population.
The main challenges to collect debt in Ukraine are
- Strict currency regulations makes it hard to pay foreign invoices for local business.
- Financial instability and fluctuating exchange rate create problems with cash flow for the most debtors and negatively impact invoice payments.
How to collect debt in Ukraine?
Amicable collection is the most effective and cost-saving way to recover debt in Ukraine. It is advised to refer case to collection when the debt is delinquent over 5 months. The less delinquency is the more chances to collect debt are.
Amicable collection is applicable almost in any case apart from case of debtor’s bankruptcy or liquidation.
Amicable collection is still possible even after statute of limitations (3 years) expired, though chances to collect in such case would be very small.
Whether amicable pre-legal collection proves to be ineffective, we check prospects of legal actions to recover the debt. Whether debtor is solvent and prospects are good, we will suggest optimal solution how to recover debt via legal actions in Ukraine.
What we do to recover a debt in Ukraine?
- study case details
- find core reason of failing to pay
- find debtor’s decision makers and financial controllers
- conduct a meeting with a 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
- prepare case for legal actions
- file and support claim in court
- support enforcement of court award
How long it takes in Ukraine?
Average time to recover debt in Ukraine is 80 days.
What the fees are?
We charge success fee in form of percent from any money recovered.
No collection – no fee policy applies.
For legal collection, fees are calculated individually for every case, depending on nature of the case, debt amount, debtor’s location.
- we have successful debt recovery experience in Ukraine
- we know local Ukrainian laws, finances and customs
- we know local Ukrainian 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.