International collections
U.S. Debt Collection for Canadian Companies
Updated 2026-10-24
If a U.S. company owes your Canadian business money, the usual first step is amicable collection by a U.S. agency that confirms the debtor, sends a demand and negotiates with its decision-makers. Most collectible accounts resolve this way. If the debtor refuses, a lawsuit is generally filed in the U.S. state where the debtor is located, through a local attorney. Pricing is usually on contingency, with legal costs approved in advance.
| Who this is for | Canadian businesses owed money by U.S. businesses (B2B only) |
|---|---|
| Where suit is filed | Generally in the U.S. state and county where the debtor is located |
| Pricing | Contingency fee on amounts recovered; legal costs quoted in advance |
| Time zones | Shared or adjacent time zones with most of Canada |
| Languages | English; French documents from Quebec accepted with translation where needed |
| Currency | Settlements usually in U.S. dollars; CAD invoices handled as agreed |
Collecting across the 49th parallel
Canadian businesses sell to American customers every day, and most of those invoices are paid on time. When one is not, the shared language, time zones and similar commercial practices make U.S. collection more straightforward for Canadian creditors than for most foreign companies. The main differences are legal: each U.S. state has its own courts, limitation periods and enforcement rules, and a Canadian court order does not reach a debtor's U.S. bank account on its own.
That is why the first step is usually negotiation by a U.S. agency. A demand from a collector in the debtor's own country, followed by calls to the person who can approve payment, often resolves the account without a lawsuit.
How a U.S. file is handled
- Confirm the debtor's legal entity through state business registries
- Check for bankruptcy filings, liens and existing judgments
- Send a written demand with itemized invoices
- Call the owner, controller or accounts payable lead
- Negotiate payment in full or a written plan, with settlement offers sent to you for approval
- Recommend legal action, with a cost estimate, only if the debtor can pay
Where and how a U.S. lawsuit is filed
A collection suit is generally filed in the state and county where the debtor is located, unless your contract names a specific court. That is where the court clearly has jurisdiction and where the judgment can be enforced against the debtor's bank accounts and other assets. An attorney licensed in that state handles the case.
Limitation periods vary by state and type of claim. For contract and sale-of-goods claims they often fall between three and six years, but some are shorter, so older invoices should be placed promptly. U.S. courts generally do not award legal fees to the winning side unless a contract or statute allows it, which is different from the cost rules Canadian creditors are used to. If your terms include an attorney fee clause, include them with the file.
Both Canada and the United States are parties to the UN Convention on Contracts for the International Sale of Goods. If your claim arises from a sale of goods and your contract did not exclude it, the CISG may apply. The attorney will review this if the file goes to court.
Pricing
Amicable collection is on contingency, typically somewhere between 15% and 50% of what is collected depending on the age, size and difficulty of the account. You pay nothing if nothing is recovered. If the file goes to an attorney, the contingency rate is higher and court costs such as filing and service fees are added, but only after you approve them in writing. Recovered funds are sent to you by wire, usually in U.S. dollars.
What to send us
- The debtor's legal name, U.S. address and contact names
- Credit application, contract or terms of sale, including governing-law and jurisdiction clauses
- Invoices and statements, with the currency shown
- Proof of delivery or completed services, including customs or shipping records
- Emails acknowledging the debt or showing no dispute was raised
- Any Canadian judgment already obtained against the debtor
Using a Canadian judgment in the U.S.
If you already hold a Canadian judgment, it may be recognized in the U.S., but that depends on the law of the state where enforcement is sought. Most states have adopted a version of a uniform act on recognizing foreign money judgments, which sets out the conditions and defenses. A U.S. attorney in the debtor's state should review the judgment and confirm the route before you rely on it.
Frequently asked questions
Do I need a U.S. lawyer to collect from an American company?
Not for amicable collection, which a U.S. agency handles. If the debtor refuses to pay and suit makes sense, the case is filed by an attorney licensed in the debtor's state. You approve the costs first.
Can I enforce my Canadian judgment in the U.S.?
Often, but it depends on the state. Most states have adopted a version of a uniform act on recognizing foreign money judgments. A local U.S. attorney should review the judgment before you proceed.
Will I be paid in U.S. or Canadian dollars?
Most U.S. debtors pay in U.S. dollars. If your invoices were in Canadian dollars, tell us how you want currency handled and we will reflect it in any settlement.
Do you handle files from Quebec companies?
Yes. Send documents in French or English. If a lawsuit is filed, key French documents used as evidence will need English translations.