APAC Companies More Proactive With Overdue Receivables

Amsterdam (ots/PRNewswire) -

The October 2015 edition of the Global Collections Review, a
survey of B2B suppliers, reveals that companies in the Asia Pacific
region have a different approach towards the management of overdue
receivables compared to their European peers. Companies in Asia
Pacific react sooner to delayed payments and are willing to use
additional methods to achieve results.

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On average, 2.0% of the total value of the B2B receivables in Asia
Pacific was written off as uncollectable, whereas in Europe the
uncollectable rate was significantly lower (1.2%). Companies located
in Asia Pacific appear to be more results driven especially when it
comes to cooperating with a debt collection agency. They are also
willing to work with more debt collections agencies simultaneously
compared to those in Europe and the Americas (where the loyalty rate
is, on average, around 80%).

Raymond van der Loos, Managing Director Atradius Collections
commented: "The economic growth in China is cooling down further,
which impacts the entire Asia Pacific region, as there are strong
regional interrelationships in supply chain trade. Measures are being
implemented, which are restricting access of corporations to bank
financing. Consequently, it is becoming more difficult for companies
in China and Asia Pacific to obtain the required working capital for
their day-to-day business operations. The number of defaulted
payments in the region has increased and there is a rising trend of
business fraud. Companies are reacting to this by submitting their
outstanding receivables to collection agencies at an earlier stage."

Compared to their peers in Europe and the Americas, almost 50% of
companies submit their past due receivables for debt recovery earlier
than 90 days past the due date. In terms of export debts, companies
in the Asia Pacific region are lacking the experience, knowledge and
execution capability to recover receivables themselves. Therefore,
they are looking for a reliable international expert, who can collect
their outstanding receivables while maintaining the relationship with
the customer.

This is also mirrored in the openness shown towards the additional
services offered in the collections market. A high interest has been
observed in first party collections services and the use of the final
demand letter before handing over the overdue receivables to debt
collection agencies. Especially China, Indonesia and India show a
great interest in using these services in the near future to put
pressure on their customers. Tony Au, Regional Head of Atradius
Collections Asia Pacific, explains: "Business relationships in Asia
are mainly built on trust. As there is an upward trend in business
fraud, it is crucial to check if the actual business is genuine early
in the sale process. Invoice verification supports companies to
prevent fraud by checking with the buyer whether he acknowledges the
business invoices. The final demand letter creates an early trigger
for customers to pay their invoices by notifying them that if they
don't pay, they will be handed over to a debt collection agent."

The complete report highlighting the survey findings of the 2015
Global Collections Review can be found in the Updates & Publications
section of the www.atradiuscollections.com website.

About Atradius Collections

Through a presence in 25 countries, Atradius Collections provides
trade invoice collection services in 96% of the countries across the
world. Its wide breadth of services, ranging from first party to
legal collections, helps companies around the globe recover unpaid
invoices. Atradius forms part of Grupo Catalana Occidente (GCO.MC),
one of the leading insurers in Spain and worldwide in credit
insurance.

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For further information:
Iris Graatsma
Email: iris.graatsma@atradius.com
Telephone: +31(0)20-553-3139

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ots Originaltext: Atradius N.V.
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