Find the best debt collection agency in Lisbon
Submit your claim in Lisbon and get 3 free quotes from debt collection businesses.
.svg)
Getting started is as easy as 1,2,3...
.svg)
Our local partners
Explore debt collection experts in Lisbon for any budget
How to collect an unpaid invoice from a debtor in Lisbon?
Are you aiming to collect redress in Lisbon, Portugal? Go ahead and keep reading! This resource will tell you everything you need to know about reclaiming money due in Lisbon. Complete the form on our website to get 3 free quotes within 2 days if you would like to hire a local private debt management firm or solicitor!
Overview of the debt collection process in Lisbon
In Lisbon, the debt collection process involves several steps and is tailored to each individual situation. We evaluate the size of the claim, the debtor’s type, and other relevant factors before beginning the collection effort. By utilizing personalized strategies, we are able to achieve higher recovery rates than the competition.
The image below explains our standard framework for collecting debt in Lisbon:
Step 1: Find a local collection agency or attorney
You can quickly post your case on Debitura and receive 3 estimates from debt recovery firms situated in Lisbon who are willing to help.
Step 2: Pre-legal collections
We will initiate notifying the debtor through multiple mediums, such as email, text, and mail, with the intention that they will finance the debt or agree to a payment plan. You will only be accountable for a minor cost if Debitura succeeds in the recovery process.
or
At Debitura, we provide a no-cure-no-pay resolution for amicable collection, which means you won't pay a cent unless we recover your debt. To start recovering your debt, our collection process begins with a series of friendly reminders to your debtor, via email, SMS, letter, and other available communication methods in Lisbon. By doing so, it allows us to obtain the debt repayment or initiate a payment plan.
Step 3: Evaluation:
If the debtor has not paid you yet after the pre-legal actions, it is time to assess your options. We will analyze the amount of your claim, the likelihood of receiving payment, and the legal regime in Lisbon to provide guidance on the most beneficial course to take. Portugal typically offers three course of action in these circumstances:
Step A: Surveillance:
If your claim is valued under 5000$, pursuing legal action may not be cost-effective. In this case, our team will use "debt surveillance" to communicate with the debtor and attempt to arrange an amicable agreement out of court. This process is a method of pre-legal monitoring; we will notify you if circumstances change and suggest further steps.
Step B: Legal collections:
If the claim is more significant, it is recommended to initiate a legal process after the pre-legal proceedings. Typically the cut-off is 5.000$, although this could be different depending on the debtor's ability to pay and other circumstances. The particular process to follow will depend on your particular scenario, and whether the debtor has contested or simply failed to respond to the pre-legal communication. For more insignificant claims, the legal action taken is typically simpler. On average, the process can take anywhere between one and a half and 18 months, and there could also be a flat fee to pay for legal costs. It is suggested to obtain a variety of quotes from debt collection agencies in Lisbon to compare prices.
Step C: Debt enforcement:
You can utilise the services of a bailiff court to implement your claim if you have either the debtor's confirmation to your statement or a court ruling. This generally requires 12-18 months in Lisbon. There exists a fixed fee which is dependent on the size of the claim, which must be disbursed to the courts in addition to payment of the attorney's fees for debt collection. To check out the exact cost of this process, simply upload your brief onto Debitura.
Pre-legal debt collection in Lisbon
Pre-legal debt collection is the practice of pursuing payment of an overdue debt prior to taking legal action. The process is also known as 'amicable collection', as it allows firms to retain a good rapport with debtors and still receive payment. The advantages of this strategy are numerous: it typically helps maintain a positive working relationship with debtors; the process is much faster than legal collection methods; and there is no financial risk associated with the attempt, as a success fee is only payable upon successful collection.
First-party debt collection happens when a company or business takes the lead on collecting their debt, either internally or directly through the debtor. Third-party debt collection involves engaging a professional or specialist debt collection agency to manage the debt collection process. It can be an effective and efficient way to collect overdue accounts as the agency possesses the knowledge and resources to resolve the problem quickly and with minimal disruption.
Negotiating payment plans or settlements that benefit both the creditor and debtor
You can add interest rate on top of the principal amount of your claim and you can also charge late payment fees, depending on the age and size of the claim. These fees are compliant with Portuguese civil law regulations, providing you with full legal protection if needed.
Debitura makes collecting debt fast and easy. Join us to help resolve your past due accounts receivable!
Legal debt collection in Lisbon
If you're finding it difficult to receive payment for goods or services provided, it's usually worth attempting to resolve the issue amicably first. However, if this fails to yield results and the claim exceeds 5,000 USD, it may be time to consider using legal debt collection services. Legal actions can be lengthy and costly, and consequently, this route should only be taken once other means of negotiation have been exhausted. It's also important to understand the specifics of the law surrounding debt collection in your region, and if necessary, to consult a lawyer. Legal debt collection involves demanding the payment of unpaid financial liabilities via the court system, and if successful, can help to secure the payment that is owed to you.
Debitura makes the process of finding a debt collection attorney easy and convenient. We provide you with three free quotes from local debt collection attorneys in Lisbon, so you can compare and find the best option for your debt collection needs. With our partners, you will have the benefit of understanding the costs and steps involved in legal debt collection. With Debitura, you can find the perfect solution for your legal debt collection.
The legal phase of debt collection involves a series of steps that are subject to the country's civil law. Our partner will contact the debtor to attempt to arrange a payment plan. If this fails, legal action is taken, including litigation, debt enforcement, mediation or bankruptcy proceedings. This depends on the size of the claim or dispute, and usually takes 12-18 months to complete.
Cost of debt collection in Lisbon
Average success fee for pre-legal debt collection in Lisbon
In Lisbon, when attempting to recover your debt through pre-legal amicable collections, it is customary to only pay a success fee if the debt is successfully recovered. This success fee is dependent on the size of your claim, and thus the amount can vary.
Hourly rate for legal-debt collection services in Lisbon
You will incur legal costs in Lisbon when trying to collect a debt. This could include court filing fees as well as attorney or agency fees. The specific amount you will owe depends on the size of your claim and the complexities of the situation, but typically legal costs relate to the amount of time required to resolve the issue. Generally, you can expect to pay a certain rate per hour for the services of a debt collection attorney or agency in Lisbon. Rates vary but here is a general indication of the average fee for this service.
Lisbon city risk profile
We have looked at Lisbon's critical financial data and extrapolated a risk assessment. You can use this analysis to evaluate your payment terms and manage your risk when doing business with customers in Lisbon.
Our analysis concludes that the risk of running a business in Lisbon is low.
Based on this low score, You can feel reasonably confident that you will be able to get paid when trading with customers in Lisbon. Nonetheless, we always recommend doing a specific credit analysis on an individual customer basis before offering any credit.
The low risk score is based on the following factors:
.png)
.png)
.png)
.png)
Economic risk in Lisbon
Portugal has a medium-sized economy with a Gross Domestic Product (GDP) of 249.89 billion U.S. dollars, which is growing at a rate of 4.88% annually. GDP per capita is 24262 U.S. dollars, and Purchasing Power Parity is 33514.27 U.S. dollars, which is high compared to the rest of the world. Additionally, the inflation rate in the country was 1.3% in 2021, which is considered very low. Thus, based on these economic risk factors, the economic risk in Portugal is medium.
Business risk in Lisbon
Business in Lisbon is generally considered low risk, with an overall economic freedom index rating of 68 out of 100. Portugal's property rights index is 74, considered average in Europe, and with 10 indicators the business freedom index in Portugal is a relatively average score at 76. The country does well when it comes to monetary freedom and trade freedom, both with an index of 85. Investment freedom is at 70 and financial freedom is at 60. It is important to take into account these indicators when looking at the business environment of Lisbon.
Political risk in Lisbon
Lisbon has a reputation of an excellent governance system and political stability. The rule of law index, which measures the confidence and compliance to society's rules, is exceptionally high at 1.13 points. Furthermore, the average control of corruption and the political stability index are both well above average. With a shadow economy of 17.82% of Portugal's GDP, Lisbon is financially secure, making it a safe option to conduct business. If a customer has good creditworthiness, credit can be provided knowing that it is likely to be enforced properly. With this low political risk score, doing business in Lisbon is safe and secure.
Commercial risk in Lisbon
Lisbon is a European city renowned for its international trade relationships. According to the country-risk model, it scores a medium commercial risk of 3 out of 4. This score is about average for the region, but there is an imbalance in export and import of goods and services. Exports have been growing annually, representing 42.03% of GDP, while imports make up 45.02%. Although this results in a negative trade balance of -2.99% of GDP, Portugal is still secure with foreign exchange reserves of 32.54 bn. USD. These trends illustrate Lisbon's international appeal and strong industry.
Financial risk in Lisbon
Financial risk in Lisbon is low and this is relatively rare among other cities in Europe. Lisbon's banking system, efficiency, and stability all contribute to this score, which is rated 1 out of 4. The country's credit information sharing index is 7 on a scale from 0 (low) to 8 (high). This indicates that access and trustworthiness of credit in Lisbon is medium-high. Moreover, the index of legal rights for creditors and borrowers in the city is 2 out of 12, indicating very weak creditor rights. These facts make it easier for those looking to analyse the creditworthiness of their customers in Lisbon. Therefore, credit rating agencies can assist with this task, providing more information and insight.
Looking for more detailed information? Then have a look at our country guide.
Read full country guide.png)
.svg)