Debt Collection in Mexico: Six Items on the Checklist for Foreigners

141206 Mexico Debt Collection 3Some foreigners who claim unpaid invoices or overdue debt in Mexico may see debt collection in Mexico as complicated, impractical or even impossible.

Others, on the other hand, may underestimate the challenges one may encounter as they compare to the relative easiness and straightforwardness of collecting in their own countries.

The truth lays, as so often, somewhere in the middle. It is perfectly possible to collect debt in Mexico, but it is fundamental to understand the country’s particular context and circumstances for debt collection.

Here is a checklist every foreigner should use as a framework when looking for debt collection in Mexico and to properly manage expectations.

Size of the claim

At the end of the day, it is all a numbers game. How much are you owed and what would be the costs of claiming and collecting it? Collections in Mexico can be expensive (especially if you go legal), time consuming, and from slow to very slow. Make sure you take a realistic approach – from an economic perspective – as to what you may expect financially from debt collection in Mexico, if time and money invested are worth it, and how far you will take it.

Nature of the claim

Are you claiming from a company or an individual? Does your claim consist of overdue invoices based on a commercial transaction or are you looking for repayment of a loan? It can make a huge difference – speaking about chances for success – whether your debtor is a company or an individual, whether you are claiming payment of overdue invoices or an outstanding loan. Legal circumstances and financial situation of your debtor make or break potential success of your case.

Quality of the claim

Key for success of debt collection in Mexico is how “clean” or complete your file is. Contracts, order forms, order and delivery confirmations, invoices, (email) correspondence, contact details of your debtor, address details, age of the outstanding balance, it is all fundamental for the success rates of debt collection in Mexico. If you file is complete, it will no doubt increase likelihood of success. Be realistic in expectations management and as a rule of thumb, just do not waste your money and time on even considering going legal if your file lacks supporting documentation for the claim.


Use the leverage that you may have. If your debtor is a company who has taken products or services from you, and there might be a commercial interest to (eventually) continue buying your products or using your services, use that leverage to enforce an amicable solution, like a payment plan with monthly instalments, a settlement payment or otherwise monetary or material compensation. If your debtor is an individual, although probably using leverage might be less straightforward, he or she might want to come back and again buy products or continue education (colleges, universities), or will need a clean credit history. When using your leverage it is important that you show flexibility and approach the situation with a solution-minded attitude.


If you look for debt collection in Mexico, use your network. Directly, if you have your contacts at agencies, law firms or representatives, or indirectly, referrals from business relationships or companies that do business in Mexico, businesses that are operating in the same markets and may have run into similar issues. From personal experience, I cannot stress how important it is to work on the basis of referrals in Mexico, more than in many other countries I am familiar with.


And finally, the location. Mexico is a big country with highly developed urban areas (Mexico City, Monterrey, and Puebla, for example) and on the opposite, professionally speaking, highly remote places. And unfortunately, some areas of Mexico have been hit heavily by political or societal instability. In principle there should be no problems to pursue your debt collection case in Mexico’s urban areas. Trying to collect in more remote areas may be challenging or in worst case, practically impossible. And sadly enough, be aware that some of your debtors (or clients) might be hit by the issues the country is nowadays facing.

When looking for debt collection in Mexico foreigner should have the following on their checklist: size of the claim, nature of the claim, quality of the claim, leverage, network and location.

These aspects determine the chances for succes and are the basis for proper expectation management.

If you are interested in learning more on the subject of debt collection in Mexico please connect on Linked-In or follow me on Twitter.

To participate in the conversation about debt collection in Latin America please join the Linked-In Group Debt Collection Latin America.

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