International debt collection and global recovery in 2026: A full guide to the risks for UK companies

Businesses trading internationally continue to operate in a fragmented global environment in 2026. While international debt collection is becoming marginally less complex overall, recovering overdue payments across borders still presents a real challenge for UK businesses, especially when insolvencies remain elevated and trading relationships span multiple legal systems.

Business insolvencies ended 2025 with an upside trend in most countries, and global business insolvencies are expected to rise again in 2026 by about 3%, continuing elevated levels of non payment risk at least through that year.
For UK businesses, domestic payment performance gives useful context when you’re trading abroad. Listed UK companies recorded average Days Sales Outstanding (DSO) of around 51 days in 2024, but late payments are a persistent issue, particularly for SMEs waiting on major outstanding invoices. While the UK offers comparatively efficient legal processes, recovery outcomes still depend heavily on early credit management and swift escalation when payment problems emerge.

If you’re a UK company expanding overseas, you must manage credit risk carefully and be aware of how local legal and payment environments affect whether debts can realistically be recovered.
 

In the 4th edition of the Allianz Trade Collection Complexity Score and Rating, our experts analysed payment practices, legal proceedings and insolvency frameworks across dozens of economies to assess where international debt collections are most difficult.

The global Collection Complexity Score now stands at 47.2 out of 100, still firmly within the “high complexity” category. Although this marks a slight improvement compared with previous editions, structural challenges are still widespread.

In 2026, nearly 48% of global international trade receivables (equivalent to US$1.1 trillion) are exposed to markets classified as very high or severe complexity, proving how international debt recovery risk remains a material issue for exporters worldwide.

As Fabrice Desnos, Member of the Board of Management at Allianz Trade, explains: “Insolvency proceedings still account for the bulk of collection complexity in all regions.”

Our analysis helps your business compare markets not only by growth potential but also by how manageable payment recovery may be if problems arise. If you’re a company beginning or expanding your export journey, you need to be fully aware of collection conditions to make better market selection and credit decisions.

Encouragingly, several established European markets continue to offer relatively favourable recovery environments. Germany, the Netherlands and Portugal rank amongst the easiest countries for international debt recovery, supported by efficient legal systems and clearer insolvency procedures.

At the other end of the scale, international commercial debt collection remains significantly more challenging in Saudi Arabia, Mexico and the United Arab Emirates, where legal, procedural and payment-practice factors increase complexity for foreign creditors.

Read more: What is DSO and how to improve it

Globally, the distribution of risk is evolving. Fewer countries now fall into the most severe categories, but complexity is becoming more widespread across markets rather than concentrated in only a few locations. And this means exporters must assess risk carefully even in fast-growing or strategically important economies.

International debt collection complexity varies considerably by region. Our latest analysis shows that the Middle East and Africa remain the most complex regions overall, while Western Europe generally offers more predictable legal and insolvency environments.

In the 2026 Collection Complexity Score, the UK records a score of 38 out of 100, falling into the ‘Notable’ category, and reflecting comparatively manageable conditions for international debt recovery amongst advanced economies.

The UK’s relatively moderate complexity score reflects the fact that British courts usually deliver rapid decisions, giving creditors clearer enforcement pathways than in many jurisdictions. That said, recent increases in court charges mean it can be costly if you want to go after large-value debts. This only reinforces the importance of resolving payment issues early or working with experienced external collection specialists when disputes escalate.

However, economic size or market attractiveness does not automatically translate into easier debt recovery. Collection complexity exists in every country and usually arises from three areas:

• Local payment practices
• Court and legal procedures
• Insolvency frameworks

Insolvency timelines also shape recovery expectations for UK exporters. While formal insolvency proceedings usually last around one year, liquidation processes can extend to three years or more depending on company size and case complexity. Although the UK framework prioritises creditor rights and aims to preserve viable businesses, unsecured creditors rarely recover notable proceeds once liquidation begins, and debt write-offs during restructuring are still common.

While most Western European countries such as Germany, the Netherlands and Portugal remain in the lowest ‘Notable' band of collection complexity, some large and economically important markets show higher levels of difficulty. The United States and Canada both post a ‘Very High’ complexity rating, reflecting procedural variation and slower unsecured debt recovery.

Other major markets, including Mexico and several fast‑growing Asian economies, also feature elevated complexity, underscoring that size and attractiveness alone do not guarantee easier international debt collection.

If we combine international debt collection complexity scores with trade flows, we can see how exposed exporters are to difficult recovery environments.

According to our analysis based on the 2026 Collection Complexity Score, around £162 billion of UK exports are bound for markets where debt collection complexity is high, very high or severe.

Major trading partners highlight where opportunity meets risk:

• The United States, an essential export destination, sits in the very high complexity category due to its multi-level legal structure and procedural variation.
• China is classified as severe complexity, reflecting legal and enforcement challenges.
• India also ranks very high, highlighting the need for careful credit management when trading in fast-growing markets.

Our 2026 report also identifies the rise of “next-generation trade hubs” such as the UAE, Vietnam and Malaysia. These economies are becoming increasingly important in global supply chains, yet they also present elevated collection complexity. For exporters, growth opportunities therefore need to be matched with stronger risk assessment and payment protection strategies.

Despite some legal and procedural improvements in a few markets, UK exporters still face recurrent obstacles when pursuing international debt collection. In many countries, the low probability of recovering a debt as an unsecured creditor once insolvency proceedings begin remains the biggest challenge.

Even in a relatively efficient legal environment such as the UK, recovery outcomes decline sharply once insolvency proceedings start.

Insolvency frameworks are a major component of collection complexity globally, and this is especially relevant for UK firms exporting into markets with elevated risk profiles. Insolvency proceedings still account for the largest share of complexity across regions, meaning that once a foreign buyer enters liquidation, recovering overdue payments becomes much harder.

Court‑related issues continue to be another core driver of complexity. The 2026 report highlights several common structural challenges that exporters face when engaging with local legal systems abroad, including:

• No regional framework offering harmonised fast track proceedings, making cross-border enforcement slow and uncertain
• Courts taking longer to deal with international claims, which increases costs and delays resolution
• Limited flexibility in enforcing foreign judgments, complicating even clear contractual disputes
• Restrictive appeal procedures and procedural delays, which can extend legal battles and add expense

These factors are particularly relevant for UK companies trading in markets such as the United States and China, where complex multi‑layered legal systems and fragmented court procedures make enforcing judgments challenging (e.g., the US has a complexity score of 56, and China is rated 66).

Payment practices also remain an ongoing concern. Our 2026 report finds that poor payment culture, extended payment terms and a lack of harmonised late‑payment frameworks make collecting receivables difficult in many countries. Nearly eight out of ten markets report low payment culture as a key issue, while long average Days Sales Outstanding (DSO), such as around 94 days in China and 75 days in India compared with about 51 days in the UK, add to uncertainty for exporters.

International debt collection conditions continue to evolve alongside global trade. While overall complexity has eased slightly, risk remains widespread and closely linked to insolvency processes, legal efficiency and local payment practices.

If you are a UK company trading internationally, it is essential to understand these differences to make informed decisions about where and how you grow. By assessing collection environments alongside commercial opportunity, you can strengthen credit management, set clearer payment expectations and improve the likelihood of successful recovery if issues arise.

To explore our findings in more detail, download our full Allianz Trade Collection Complexity Score 2026 report.