The Global Collections Review examines the collections behaviour of over 6000 companies across 30 countries worldwide. All interview participants work in Account Receivables Management. The report looks at potential future developments of the services offered by debt collection agencies, while also identifying the factors that influence the collection process regionally.
What can you find in the Global Collections Review?
Delayed Payment Handling
The tendency to trade on credit is a common practice adopted for both domestic and international B2B transactions. This section describes how delayed payments can impact business transactions, as the longer the debts remain unpaid, the lower the likelihood to fully recover the outstanding amount. Companies try to recover their unpaid commercial debts using internal resources. When they fail, they seek the assistance of external partners such as debt collection agencies. In some regions internal collection is the preferred method, whilst in other regions this is ineffective and companies still prefer outsourcing.
Debt Collection Services Development
The GCR shows that debt recovery solutions vary among regions. In some countries the professional service of collecting debts is still difficult to manage, in others it is in a mature stage. Third party collection service, consultancy on legal collection and online access to cases are common, while in certain regions, companies look for alternative collections services, including credit management training and online payment.
The presence of overdue receivables has caused companies to postpone their own payments to suppliers, take specific measures to correct cash flow, lose revenue, and look for additional financing. In this section, regional company collection behaviour is discussed; which make use of credit insurance, checking creditworthiness of buyers, and monitor buyers’ credit risk. Companies in some regions expect improvements in the ability of their customers to pay invoices on time, in other regions companies forecast a future deterioration in financial security of their customers.