International debt collection - Euler Hermes

Dec 2, 2014 - justice and help international companies get a fair treatment locally. .... domestic companies is good and ...... Phone: + 33 (0) 1 84 11 50 50.
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Economic Outlook no.1213 December 2014 Special Report www.eulerhermes.com

International debt collection The Good, the Bad and the Ugly

Economic Research

Economic Outlook no. 1213 | December 2014 | Special Report

Euler Hermes

Contents Economic Research Euler Hermes Group

Economic Outlook no. 1213 Special Report

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EDITORIAL

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Rule #3: Beware of toothless courts

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OVERVIEW

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Zoom Regional and local perspectives towards late payment

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International debt collection: A three-step approach

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Focus Unsupportive courts — Selected examples

Euler Hermes’ Unique Collection Complexity Score

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Rule #4: Insolvent debtors? Hurry before it is too late

Five takeaways for sound debt collection worldwide

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Zoom Regional perspectives: From efforts to run-aways

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Rule #5: The sooner, the better

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OUR PUBLICATIONS

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SUBSIDIARIES

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8 10 The Economic Outlook is a monthly publication released by the Economic Research Department of Euler Hermes Group. This publication is for the clients of Euler Hermes Group and available on subscription for other businesses and organizations. Reproduction is authorised, so long as mention of source is made. Contact the Economic Research Department Publication Director and Chief Economist: Ludovic Subran Macroeconomic Research and Country Risk: David Semmens (Head), Frédéric Andres, Andrew Atkinson, Ana Boata, Mahamoud Islam, Dan North, Daniela Ordóñez, Manfred Stamer (Country Economists) Sector and Insolvency Research: Maxime Lemerle (Head), Farah Allouche, Yann Lacroix, Marc Livinec, Didier Moizo (Sector Advisors), Antoine Martin (Consultant) Support: Lætitia Giordanella (Office Manager), Sarah Bosse-Platière, Claudia Huisman, Sergey Zuev (Research Assistants) Editor: Martine Benhadj Graphic Design: Claire Mabille Photo credit: Allianz, Thinkstock For further information, contact the Economic Research Department of Euler Hermes Group at 1, place des Saisons 92048 Paris La Défense Cedex – Tel.: +33 (0) 1 84 11 50 46 – e-mail: [email protected] > Euler Hermes Group is a limited company with a Directoire and Supervisory Board, with a capital of EUR 14 509 497, RCS Paris B 388 236 853 Photoengraving: Imprimerie Adelinet – Permit December 2014; issn 1 162–2 881 ◾ December 2 , 2014

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COLLECTION COMPLEXITY 2014 THE FIVE COMMANDMENTS FOR INTERNATIONAL DEBT COLLECTION

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Rule #1: Never underestimate the business context

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Focus Talking about payment…

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Rule #2: When facing late payers, negotiation with teeth is one's best friend

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Focus Ownership protection agreements may help

Euler Hermes

Economic Outlook no. 1213 | December 2014 | Special Report

EDITORIAL

Fifty shades of collection LUDOVIC SUBRAN

Let's face it, whether your business is domestic or international in nature, collecting debt is often a daunting task which one would always prefer to avoid. Of course, collection is about persuasion but there is more to it and, often, going through successive layers of proceedings may be necessary. Persuasion, intimidation, whip-cracking judges are as many reasons why I wanted to draw a parallel between international debt collection and Fifty Shades of Grey the international best seller (coming soon to cinemas!). Sometimes, you wonder why companies do that to themselves; it cannot be corporate BDSM, right? But the reality is unfortunately always the same: The longer one waits, the greater the danger of never collecting the debt. Prevention is key, so is getting professional help when needed. Yo