International collections
Collect a Debt from a Company in Canada
Updated 2026-10-24
To collect from a Canadian company, start with amicable collection through a licensed partner in the debtor's province: verified demand letters, calls to the decision-maker and a negotiated payment or plan. Most collectible accounts resolve at this stage. If the debtor refuses, a local lawyer can sue in the province, or try to enforce an existing U.S. judgment through a new action or registration. Confirm the legal route with provincial counsel.
| Languages | English; French in Quebec and parts of New Brunswick |
|---|---|
| Currency | Canadian dollar (CAD) |
| Legal system | Common law in nine provinces and the territories; civil law (Civil Code of Quebec) in Quebec |
| Enforcing a U.S. judgment | Generally possible through a new court action or, in some provinces, registration; limitation periods can be short |
| Collection licensing | Collection agencies are licensed province by province |
| Typical amicable timeline | Most files show their direction within 30 to 90 days |
Why Canadian accounts are usually the easiest cross-border files
Canada shares a language, a time zone band and a long trading history with the United States. Most Canadian companies are used to paying U.S. suppliers in U.S. dollars, and their bankers, accountants and lawyers deal with American counterparties every day. That makes a well-documented invoice dispute easier to resolve than in most other countries.
The main differences are structural. Collection agencies are regulated by each province, so the agency contacting your debtor needs to hold the right provincial license. Quebec runs on a civil law system and French is the default language of business there, so letters and calls to a Quebec company should be handled by a bilingual partner. Every province also has its own limitation rules, and some are shorter than U.S. creditors expect.
How we work a Canadian file
- Confirm the exact legal entity through federal or provincial corporate registries, including any numbered company names
- Check for insolvency filings, receiverships and proposals under the Bankruptcy and Insolvency Act
- Assign the account to a provincially licensed partner, with French-language handling for Quebec debtors
- Send a written demand with itemized invoices, then follow up by phone with the person who can approve payment
- Negotiate payment in full or a written plan, with any settlement offer sent to you for approval first
- If the debtor will not pay, prepare a legal recommendation with expected costs before anything is filed
Suing in Canada or enforcing a U.S. judgment
If amicable work fails, there are two broad paths. The first is to sue the debtor in the province where it is located. Each province has a small claims court for lower balances and a superior court for larger ones, and the monetary limits differ from province to province.
The second path applies if you already hold a U.S. judgment. Canadian courts have a long-standing approach that generally recognizes foreign money judgments where the foreign court had a real and substantial connection to the dispute and the defendant had a fair chance to defend. Depending on the province, enforcement is usually done by bringing a new action on the judgment or, where provincial law allows, registering it. Defenses such as fraud, lack of natural justice and public policy remain available to the debtor.
Timing matters. Some provinces apply a short limitation period to actions on foreign judgments, so a U.S. judgment that sat unused for a couple of years may be harder to enforce. Your provincial lawyer should confirm the deadline before you rely on this route.
Documents that make a Canadian claim stronger
- Signed credit application, contract, or accepted purchase order
- Invoices showing the amount, currency and payment terms
- Proof of delivery or acceptance of services
- Emails or statements where the debtor acknowledged the balance
- Any personal guarantee signed by an owner or officer
- Any U.S. judgment, with proof the debtor was served
Practical points for U.S. creditors
Agree on the currency up front. If your invoice is in U.S. dollars, the demand should say so clearly, because a Canadian court judgment may be expressed in Canadian dollars and converted under local rules.
Sales tax adds another wrinkle. Canadian invoices often include GST or HST, and provincial sales tax in some provinces. If your invoice charged Canadian tax, make sure your amounts match what the debtor's accounts payable team sees in its system before the first demand goes out. Small mismatches are a common excuse for delay.
Frequently asked questions
Can a U.S. collection agency contact a company in Canada?
Collection agencies are licensed by each Canadian province, so contact with a Canadian debtor is normally handled by a partner that holds the right provincial license. We place the account with that partner and manage the file and reporting for you.
Is a U.S. judgment valid in Canada?
Not automatically. Canadian provinces generally recognize foreign money judgments, but you usually need to bring a new action on the judgment or register it under provincial rules. The debtor can still raise limited defenses, and limitation periods can be short, so confirm the route with local counsel.
Do you handle Quebec debtors?
Yes. Quebec files are worked by bilingual partners, and correspondence is prepared in French where that helps the claim. Quebec follows civil law, so any legal step is reviewed by a Quebec lawyer.
What does it cost to collect from a Canadian company?
Amicable collection is billed on contingency, so you pay a percentage of what is recovered and nothing if nothing is recovered. Any legal costs, such as court fees, are shown to you and need your approval before they are spent.