Debt recovery solutions
What are debt recovery solutions?
Working with different businesses always carries some risk whether it is in your home country or overseas. According to recent statistics around 25% of invoices in Europe are paid late or not at all, and 70% of companies in Asia Pacific reported late payments. Having companies owe you debt can present a significant threat to your business and you should not have to struggle because of others owing you payments.
It is especially difficult to collect the debt if it is international and you are not physically in the country where the debt is located. That is why we have our debt recovery solutions process in place, to support financial planning and recover late payments.
How can we help?
It can be more challenging to recover money from debtors in international countries because of different cultures, laws, and currencies. However, at Coface we can offer you local services per country, such as legal advice and services and bailiffs if necessary. You will be given a point of contact for communication about your foreign debt collection solution. Your local Coface employees will be your point of contact, they will organise all communications to the debtor country involved and keep you updated throughout.
We have direct presents in over 100 countries. We have knowledge of the economic and trading culture and the best collection method in your debtor country. As well as this we speak the same language as the debtor which helps us to collect for you quickly and efficiently with no barriers in the collection process.
As difficult as it can be debt collection is an essential part of risk management, but you don’t have to handle it alone. Our credit account recovery solutions are tailored to give full control of your overdue accounts whether they are international or domestic.
Over 70 years as a global leader in credit insurance
Companies checked globally
Fitch rating in 2020
Businesses protected worldwide
Why choose Coface’s debt collection solutions?
Our expert service significantly improves the chances of recovering your money as well as helping to support financial planning for your business. Even if your circumstances appear difficult and you don’t expect to recover your money we will do everything we can to deliver results.
Being such a large and well-established company, we can give you competitive rates that typically work out cheaper than the cost of doing your debt recovery in-house. Also, if you aren’t experienced with debt recovery in-house you may not be able to recover your money as quickly and efficiently as our experienced network at Coface.
Other reasons to use us for your debt collection include:
- There will be action on your debt recovery within 24 hours, our process has been designed to work as fast as possible.
- You have access to full management of debt collection from the initial contact to all follow-ups and recoveries.
- Our service will be personalised to you, designed for your company size and sector.
- You can access our services for both insured and uninsured invoices.
- Valuable support for challenging times. Having a trusted business partner or customer owe you money can leave you in an extremely difficult situation, especially if it leaves your business financially compromised, but with our support and expertise we will ensure the debt is paid back to you.
- The potential of maintaining a positive relationship with the debtor and therefore a chance at renewed business volume in the future. Even though there may not be a way forward for some business partnerships for others there could be. If the matter is effectively handled you could continue to be successful in the future with your debtor with our help.
- Access to local enforcement facilities, which can be invaluable in recovering debt fast in overseas locations.
Frequently asked questions about debt recovery
How can I recover debts without pushing away valued customers?It can be beneficial to take a diplomatic but firm approach. You should discuss the situation with the customer and try to resolve any problems to reach an agreement. Be honest and explain what steps you intend to take to recover the money, letting them know before you involve a third party. Some working relationships with debtors can still have a successful future if handled in the right way.
Is it better to compromise when trying to recover an overdue debt?There won’t be any point in demanding immediate payment in full if the debtor cannot afford to pay. Negotiating a part payment and rescheduling the debt (with confirmation in writing) can at least help you recover some of the money you are owed and boosts the chances of maintaining a positive relationship if the debtor’s financial problems are only temporary.
When is it best to use a third-party specialising in debt recovery solutions?You can use a debt recovery company in any situation where you need to chase up payments. For example, if you are in an industry where getting paid on time is a consistent problem you might use a debt collection company to get late payments from all your debtors.