Survey Examines International B2B Collection Trends
Friday, September 29, 2017
Understanding customers’ payment and collection practices in countries where they do business is essential to minimizing risk. For this reason, international debt collection firm Atradius Collections conducts and publishes its annual Global Collections Review. The report examines companies’ collection behavior in 30 countries and how they deal with overdue invoices, while also identifying the factors that influence the collection process.
Findings from this year’s report include:
- The age of the debt is still a problem in the collections market. It drives the success of the recovery process, but companies, especially in Europe and the Americas, tend to hand over to debt collection agencies debts that are older than six months.
- Caution characterizes European companies when outsourcing their first-party collections or when using invoice checking, but there is a higher level of interest and willingness to use final demand letters.
- Openness and dynamism among companies in the Americas and Asia Pacific, where the approach to the collection process is more aggressive and result-oriented, are a reflection of the willingness to use the diverse range of services available in the collections market.
- The average days sales outstanding (DSO) is expected to deteriorate in the near future, but none of the surveyed companies feel pressure over cash flow, being able to adopt measures to keep it under control.
- European companies fear the deterioration of the liquidity position of their own customers and the consequent increase in the number of high-risk customers.
Interested in learning more about international credit and bankruptcy practices? Join NACM North Central and credit industry veteran Wanda Borges, Esq., for the International Credit Workshop on Oct. 24, 2017, in Golden Valley, Minn. Learn more and register today.