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For businesses that operate around the globe, the task of international debt recovery can seem daunting. Recovering debts from overseas may seem challenging, but a trade report produced by Trade insurers Allianz Trade sheds some light on those countries where the risk of not getting money back is high.
Allianz Report on International Debt Recovery Services
The third edition of the Allianz Trade Collection Complexity Score provides a simple assessment of how difficult it is to collect debt, helping to support decisions and manage expectations when trading internationally.
The score covers 49 countries representing nearly 90% of global GDP and 85% of global trade. The Allianz Trade Collection Complexity Score measures the level of complexity relating to international debt collection procedures from 0 (least complex) to 100 (most complex).
The score combines the expert judgment of Allianz Trade’s Collection specialists worldwide and over 40 administrative indicators relating to local payment practices, local court proceedings, and local insolvency proceedings.
Allianz scores regarding International Debt Recovery challenges
Some of the most significant rankings include:
· Saudi Arabia: 91
· Malaysia: 78
· UAE: 72
· Brazil: 43
· New Zealand: 36
· France: 36
· Spain: 36
· Finland: 32
· Sweden: 30
· Germany: 30
According to the report, Europe is still the easiest place to collect debts. This is no doubt good news for businesses looking to expand their European reach. Sweden, Germany, and Finland are the best in class, with their scores remaining stable compared to the previous report. Nonetheless, some countries are more challenging than others, and the report highlights that the Middle East, Asia, and Africa are the three regions where debt collection is the most complex.
Saudi Arabia, Malaysia, and the United Arab Emirates are the hardest countries to recover debt from. To put it into perspective, international debt collection is three times more complex in Saudi Arabia than in Sweden, Germany, and Finland. So, why is this? There are a number of reasons why debt recovery is challenging in these locations, including language barriers, physical distance, unfamiliar foreign laws and cultural barriers. Many UK businesses simply do not have the time or resources to dedicate to chasing debts in locations as far away as the ones highlighted above.
How debt collection international services can help
Even with the information and guidance provided by the Allianz Trade score, international debt collection can be a minefield to navigate. For this reason, many UK businesses may benefit from partnering with international debt recovery agencies. International debt recovery experts can help businesses to successfully navigate overseas debt collection and ensure your business can profitably expand across the globe. Get in touch today to find out more.
If you think your business may benefit from international debt collection, get in touch with our debt collection team today and we’d be happy to discuss our services in greater detail with you.
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