Collection of Canadian Debt in the United States
Are you experiencing difficulties collecting Canadian debt in the US? Do you know the risks involved when extending credit terms to American companies?
Canadians and Americans have enjoyed a longstanding and free uncontested border, with many citizens crossing into each country daily. In fact, during the winter months, states like Florida, Arizona, and California are inundated with Canadian snowbirds seeking refuge from the Canadian winter.
The same can be said for companies doing business across the border. The amount of commerce transacting daily between the two countries is staggering. Each nation-state is the other’s largest trading partner.
It is this closeness we feel with our American cousins that could lead to financial trouble. We forget that the United States is still a foreign country with different rules. Of course, the same can be said for American firms doing business in Canada.
If you need help collecting Canadian Debt in the US
Call Toll-Free 1-866-766-9195
Foreign Countries Have Different Rules
Extending credit terms to American companies is a great way to:
- Expand your market
- Increase sales
- And drive profitability
However, collecting Canadian debt in the US is another matter. Just because we are doing business in a friendly country doesn’t mean we do not complete all the necessary credit checks and get all the agreements signed.
The Risks Of Extending Credit Across Borders
Generally, Canadian creditors have their credit applications containing all the terms and conditions of repayment, but these are drafted by their Canadian lawyers. If you used the same credit agreements when extending terms to an American firm, you leave yourself open to a multitude of risks.
These risks, to name a few, may include:
- Jurisdiction for legal action
- Void personal guarantees
- Inability to report to American Credit Bureaus
- And judgment enforcement
American firms have the same issues when extending credit to Canadians.
Having A US Location Has Its Benefits
If you are serious about selling on credit terms into a foreign country like the United States of America, PCM Corp recommends incorporating an American division and selling through that company.
Having an American division makes enforcement of your credit terms much simpler should you need to hire a collection agency to recover your money. Should you not have an American affiliate, when collecting Canadian debt in the US we recommend considering the use of trade credit insurance to ensure your receivables.
PCM Corp Is An Experienced US Debt Collection Agency
Collecting Canadian debt in the US can be easy and possible, yet it depends solely on your paperwork and credit checks. At PCM Corp, we have over 30 years of experience with cross-border debt collection (as well as International Debt Collection). We know what works and what does not work.
We can also help you create a universal business credit application form template for your business that can be customized for your US customers.
PCM maintains a U.S. division called Account Adjustment Bureau, Inc (AAB) and each company regularly assists the other with cross-border transactions.
Give us a call today at 1-866-766-9195 for a complementary and practical consultation.
About PCM Corp
Along with collection agency services in Canada specializing in debt recovery, Priority Credit Management can help you with cross-border debt collection. Since 2005 we have have been providing the tools and commercial collection services necessary to help commercial businesses to:
- Responsibly collect on debt
- Improve cash flow
- Successfully manage their receivables
Check out our Pro Subscription Plans.