International Debt

By Pasecom Group Ltd editorial team · Reviewed 20 October 2026

This section of the Advice Hub is for businesses on either side of a cross-border trade debt: overseas suppliers owed money by a UK company, and UK businesses trying to understand their options when the paperwork involves more than one country. The guides below go into detail. This page sets out the main points so you can work out where you stand before you read further.

Step 1: identify the right UK debtor

The first check is always the debtor's legal identity. A trading name on a website or email signature is not enough. Search the public Companies House register for the exact company name and number, the registered office address and the company status. If the status shows liquidation, administration or dissolution, ordinary collection is usually not possible and the claim has to go to the insolvency practitioner instead. If the invoice was addressed to a brand name, match it to the registered company before you escalate, because a demand sent to the wrong entity can be ignored.

This service only accepts claims against UK limited companies, LLPs and PLCs. Debts owed by consumers, sole traders or partnerships need a different route.

Step 2: check the governing law and jurisdiction clause

Your contract or terms of business should say which country's law applies and which courts can hear a dispute. Where English law applies, the Late Payment of Commercial Debts (Interest) Act 1998 can give you statutory interest at 8% above the Bank of England base rate, fixed compensation of £40, £70 or £100 per invoice and reasonable recovery costs on a qualifying contract. Where another country's law was chosen, rely on the interest and cost terms you agreed. If there is no written clause at all, a partner or a solicitor can advise on which law is likely to apply; that is a question of fact and law, not something to guess.

Step 3: gather the evidence a UK partner will ask for

• The signed contract, purchase order or accepted quote.
• Every unpaid invoice, with dates, due dates and currency.
• Proof of delivery or completion of the work.
• Emails or messages in which the debtor accepted the work, promised payment or raised a complaint.
• A statement of account showing what has been paid and what remains.

Translations are helpful when key documents are not in English. A partner can work from good evidence quickly; gaps slow everything down and give the debtor room to raise a late dispute.

Step 4: send a clear final demand

Before escalating, send one clear written demand to the registered company giving a short, specific deadline. If you intend to go to court in England and Wales, the Practice Direction on Pre-Action Conduct expects a letter before action giving the debtor a reasonable chance to pay or explain, usually 14 days for a company. Our guide to letters before action for business debts explains what to include.

Step 5: instruct a local partner

UK debtors sometimes assume that an overseas creditor will not pursue them here. A demand from a UK-based agency, using UK pre-action language and referring to the UK courts, usually changes that assumption. Debt Collection UK, a trading name of PASECOM GROUP LTD (company 17139327), introduces cross-border B2B claims to independent partner agencies. The fee is 15% of the sum recovered, payable only when you have been paid. See international debt collection for how the process works. Recovery is not guaranteed, and any court steps are optional and explained before you decide.

Do not leave it too long

In England and Wales, the limitation period for a simple contract debt is generally six years from when the money fell due. In practice, recovery gets harder long before that: companies change hands, directors move on and records go missing. If reminders have gone unanswered for more than a few weeks past the due date, it is usually time to escalate.

Frequently asked questions

Can an overseas business recover a debt from a UK company?

Yes. A UK limited company, LLP or PLC can be pursued in the UK whatever country the creditor is based in. A local partner agency can send a demand and letter before action under English pre-action rules and, if you later authorise it, advise on a county court claim.

Does the Late Payment Act apply if I am based outside the UK?

It can. The Late Payment of Commercial Debts (Interest) Act 1998 applies to qualifying business contracts governed by UK law, which is often the case when you sold to a UK company. If your contract chose another country's law, the interest and costs in your own terms apply instead.

Which currency will the debt be pursued in?

The currency on the original invoice. The partner will pursue that amount, or a documented sterling equivalent agreed at settlement.

How much does it cost?

The fee is 15% of the sum recovered, payable only when you have been paid. If nothing is recovered, no fee is due. Court costs are separate and are explained before you decide.

What if the UK company has gone into liquidation?

Check Companies House first. If the company is in liquidation or administration, the claim normally has to be made to the insolvency practitioner, and collection activity by an agency stops.

Guides in this section