International collections
U.S. Debt Collection for UK Companies
Updated 2026-10-24
If an American company owes your UK business money, the usual first step is amicable collection by a U.S. agency: verifying the debtor, sending a formal demand and negotiating by phone. Most collectible accounts resolve this way. If the debtor refuses, suit is generally filed in the U.S. state where the debtor is located, through a local attorney. Fees are typically contingency-based, so you pay only from what is recovered.
| Who this is for | UK 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 |
| Legal costs rule | Each side usually pays its own lawyers unless a contract or statute says otherwise |
| Time difference | U.S. Eastern time is 5 hours behind the UK; Pacific time is 8 hours behind (most of the year) |
| UK late payment compensation | Applies only where the contract is governed by UK law |
How business debt collection works in the U.S.
Commercial collection in the United States is a negotiated process first and a legal process second. A collection agency verifies the debtor's legal entity through state business records, checks for bankruptcy filings, liens and judgments, then contacts the company's decision-makers by letter, email and phone. Most business debtors that can pay will either pay or agree a plan once a U.S. agency is involved, because they know the next step is a local lawsuit.
The federal consumer debt collection rules do not generally apply to debts between businesses, but some states license or regulate commercial collection agencies, and every reputable agency follows professional standards. We collect only business-to-business debts.
Where a lawsuit would be filed
If amicable collection fails, the claim is usually filed in the state where the debtor is located, and often in the county of its main place of business. That is where the court will clearly have jurisdiction over the debtor and where its bank accounts and assets can be reached after judgment. Your contract may contain a forum clause naming a specific court, which can change this, so send us your terms.
Each state has its own court rules, limitation periods and enforcement tools. Limitation periods for contract claims commonly run between three and six years, with a four-year period often applying to sales of goods, but they vary and should be checked early. After judgment, a local attorney can use tools such as bank levies, garnishment and debtor examinations, depending on state law.
UK creditors should also know that U.S. courts generally follow the American rule on legal costs: each side pays its own lawyers, even if it wins, unless a contract or statute provides otherwise. If your terms include an attorney fee clause, that can be valuable in a U.S. case.
UK late payment interest and U.S. debtors
UK businesses often expect to add statutory interest and fixed compensation under the Late Payment of Commercial Debts (Interest) Act 1998. That Act applies only where the contract is governed by the law of part of the UK. If your contract is governed by English or other UK law, it may be possible to claim it, though a U.S. court would need to be persuaded to apply it. If your contract is governed by a U.S. state's law, or has no governing-law clause and U.S. law applies, interest and fees come from that state's law and your contract instead. Many U.S. states allow pre-judgment interest at a statutory rate, and a contractual late fee or interest clause can often be enforced if it is reasonable.
Pricing
Amicable collection is billed on contingency. U.S. commercial agencies typically charge somewhere between 15% and 50% of the amount collected, depending on the age, size and difficulty of the account. You pay nothing if nothing is recovered. If the file moves to a U.S. attorney, the contingency rate is usually higher and court costs such as filing and service fees are added. We show those costs and get your written approval before any suit is filed.
The debtor pays you directly by international wire to your own account. Settlements are usually in U.S. dollars, so tell us at the start if your invoices were in sterling and how you want currency handled.
What to send us
- The debtor's full legal name, address and any contact names
- Your contract or terms and conditions, including governing-law and jurisdiction clauses
- Invoices, statements and purchase orders
- Proof of delivery or completion of services
- Emails acknowledging the debt or showing there was no dispute
- Any English court judgment you already hold against the debtor
Time zones and communication
We work U.S. business hours across all time zones and report in writing, so you can review progress during your own working day. Settlement offers come to you for approval with a recommendation. If you already have an English judgment, enforcement in the U.S. is a matter of state law; most states have adopted a version of a uniform act on recognizing foreign money judgments. A U.S. attorney in the debtor's state should confirm the route.
Frequently asked questions
Can I claim UK late payment compensation from an American company?
Only where your contract is governed by UK law, and a U.S. court would still need to apply it. If your contract is governed by a U.S. state's law, interest and fees come from that state's law and your contract terms instead.
Where would I have to sue a U.S. company?
Generally in the state, and often the county, where the debtor is located, unless your contract names a different court. A local attorney handles the case, and you approve costs before anything is filed.
Do I need to travel to the U.S.?
Usually not. Amicable collection is handled remotely, and most collection lawsuits resolve without a trial. If a case is contested, the attorney will explain whether your testimony is needed and how it can be given.
Can an English judgment be enforced in the U.S.?
Often, yes, but it depends on the law of the state where enforcement is sought. Most states have adopted a version of a uniform act for recognizing foreign money judgments. A U.S. attorney should review the judgment first.