Euler Hermes report on the process of debt collection in the Asia Pacific region shows a case of severe complexity rating.
Three main factors were analyzed for the purpose of the report: local payment practices, local court proceedings and local insolvency proceedings.
It therefore provides a simple assessment of debt collection proceedings in each country, helping to support decisions and manage expectations when trading internationally.
Asia-Pacific is not far behind and counts the highest number of countries standing at a severe rating of collection complexity, with Malaysia (right behind the United Arab Emirates), China and Indonesia.
Western European countries lead the pack
Euler Hermes said its “2018 Collection Complexity Score and Rating” aims at measuring the level of complexity relating to international debt collection procedures within each of the 50 countries taken into consideration.
While the global average stands at 51 on a 0-100 scale, showing a very high level of collection complexity around the world, Western Europe stands out when it comes to simplifying the life of companies trying to recover their dues.
“A key rule applies to debt collection: the longer one waits, the greater the complexity and risks. That is why we want to help our clients to make the right decision at the right time. The Euler Hermes 2018 Collection Complexity Score and Rating provides a simple assessment of debt collection procedures in each country, helping to support our clients with key information when and where they want it,” said Claude Troussart, Regional Risk Information Claims & Collection Director at Euler Hermes APAC.