With 530 million consumers, North America is a key region for global trade and exports from countries around the world. It is a robust market, but business cultures vary significantly from one country to another. Discover advice from our local experts on tailoring your strategy to each geography and collecting outstanding debts more effectively.
One economically integrated region, 3 Debt Collection strategies
Together, the United States, Canada and Mexico form a market of more than 530 million consumers, underpinned by one of the world’s most dynamic economies and particularly strong trade flows. Yet payment behaviours vary considerably, as do the debt collection systems, which are based on very different approaches.
For companies, a one-size-fits-all debt collection strategy is therefore unsuitable. Understanding the specific features of each market helps to:
- improve collection rates;
- reduce payment times;
- secure business relationships over the long term.
This is all the more important in North America, where 60% of debt collection cases involve debts of less than €20,000 and non-payment rarely stems from the same causes.
United States: the supporting documentation matters more than the debt itself
The challenges
As the world’s largest economy and a leading international trading partner for many companies, the United States offers considerable opportunities across sectors as varied as industry, services, technology and healthcare.
This favourable environment has not prevented a recent rise in client risk: business insolvencies increased by approximately 76% between 2022 and 2025, while debt collection operates within a particularly demanding legal environment that may vary from one state to another.
Pitfalls to avoid
An acknowledged debt is not necessarily a paid debt. Debtors may make repeated requests for supporting documents, raise disputes or enter into negotiations in order to delay payment. The creditor must therefore retain the initiative throughout the discussions.
Purchase order, Demand Letter, Personal Guarantee, Promissory Note: US debtors will generally request additional evidence, challenge certain invoice items, seek clarification of contractual terms or claim partial non-compliance. In many cases, these arguments are not intended to deny the existence of the debt, but to open a discussion about the payment arrangements.
The strategy to adopt
The main mistake is to treat such a dispute as a routine administrative exchange. The longer the response takes, the longer the debtor retains control of the discussion.
Conversely, a prompt, well-reasoned response accompanied by all supporting documents will often enable the creditor to regain control of the negotiation.
The real challenge is therefore to understand the debtor’s strategy: are they genuinely disputing the debt, or merely trying to buy time?
The success of the debt collection process hinges on this analysis. The more thoroughly documented the case, the sooner it is possible to regain control of the negotiation,
explainsZach Spencer, Head of Debt Collection, Coface North America.
Canada: different legal systems and multiple documentary requirements to anticipate
The challenges
Canada is one of the world’s most stable economies and among the most open to international trade. For companies, it is an attractive market, supported by a secure legal environment, transparent business practices and agreements that facilitate trade with major blocs such as the European Union. Nevertheless, the risk of non-payment remains significant.
Canadian companies face more demanding financing conditions and persistent pressure on cash flow. Business insolvencies therefore remain above pre-crisis levels, at 7.37 insolvencies per 10,000 businesses in 2025, following a peak of 9.85 in 2024.
Pitfalls to avoid
For companies, the main challenge lies less in the debtor’s willingness to pay than in understanding Canada’s legal specificities. The country has two legal systems:
- Common Law in the English-speaking provinces;
- the Civil Code of Québec, directly inspired by French civil law.
This duality affects, in particular, the drafting of contracts, debt collection procedures and the handling of commercial disputes.
The strategy to adopt
In Canada, dialogue with debtors is generally straightforward. Negotiation is the preferred solution for most parties, while court proceedings are used only as a last resort. The quality of the business relationship makes discussions easier, but it can never replace legal certainty.
In this context, a rigorously documented case file and a sound command of the legal framework are the main factors in successful debt collection.
Mexico: the urgent need to track down the debtor
The challenges
Mexico is a major trading partner for advanced economies operating in North America, driven by the development of nearshoring, foreign investment and its integration into North American value chains. However, the economic environment remains mixed: after a period of growth, with the economy expanding by 1.7% in 2024 and Mexican GDP by 1.5% in 2025, inflation continues to weigh on financing costs and the cash flow of local companies.
Pitfalls to avoid
Whereas companies in the United States and Canada frequently use disputes as a negotiating lever, Mexican debtors very rarely challenge the existence of the debt. Mexico presents a completely different situation, with one major distinguishing feature. Financial difficulties are more pronounced, debtors frequently and rapidly become unreachable, and court proceedings are lengthy, expensive and highly formalistic, lasting up to 15 years in the most complex cases.
The strategy to adopt
Here, the main risk factor is different: it lies in the debtor gradually disappearing, changing address, ceasing to respond or becoming difficult to locate. Successful debt collection therefore depends above all on the ability to locate the debtor, establish a dialogue and reach an amicable agreement before taking legal action.
The real challenge is to maintain regular contact and take action before the business becomes difficult to locate.
The sooner contact is established, the greater the chances of reaching an amicable solution,
states Lorena Cervantes, Head of Debt Collection, Coface Mexico.
Are you expanding your business abroad? Make sure you understand the rules of the game before unpaid invoices put pressure on your cash flow:
Download our whitepaper to learn more about payment delays, local procedures, legal pitfalls and country-specific best practices.
Contact your local expert to discover the solutions you need to collect your debts effectively and understand the specific features of North American countries and tailor your approach to each market.
