We understand export credit risk. We know that flexible credit terms can be a deal-breaker for some international customers and that there’s always risk when trading with new foreign markets.
That’s why we offer specialist export credit insurance for businesses looking to cross borders and make international debt collection as easy and straightforward as possible.
‘International debt collection’ is a term used to describe the recouping of owed money from outside of the country. For example, if a UK-based company is owed money by a US organisation.
This may be required when a business exports abroad and a payment is missed for any reason.
Allianz Trade’s process for debt collection overseas is very similar to our process within the UK. Get to know the steps we take by reading: What happens when you place a debt for collection?
We manage export collections from one of our 40 hubs across the world, providing a global reach.
We categorise debtor management into one of three tiers:
We don’t have a hub in every country, but all nations are covered. Typically, a hub will operate in the same language as the debtor and the same time zone. The hub or external agent, in most instances, will be either based within the same country as the debtor or in a bordering country.
This has proven extremely successful. In an average year, we collect 120,000 debts spread over 145 countries. We have 340+ collection experts around the globe servicing our all our insured clients. About 90% of our collection cases are collected amicably i.e. without the need for legal action, which helps preserve the relationship between you and your buyers
Our customer asked us for support after payment was missed because the debtor had an issue relating to some invoices that were not included in the placement.
Our local team pushed the debtor to pay the undisputed invoices first, successfully, while providing information on the issues in French to the client so they could handle this separately. This supportive approach saw the dispute resolved quickly and efficiently.
Paper trails – The more documents and the more written correspondence you have, the better. Ideally, there would be a paper trail from purchase order to shipping and beyond. This will ensure there’s clear evidence of communication regarding payments and there’s likely to be fewer disputes.
Ideally, a contract and terms and conditions would be agreed and signed when you started working with the customer. When these are created post-contractually, they’re likely to be easier for the customer to dispute.
Legislation – As laws and regulations differ greatly from country to country, we’d strongly recommend that exporting clients check the requirements for any country they’re hoping to sell to.
For example, in some Eastern European countries, it’s necessary for invoices that are sent to a buyer to be stamped by said buyer and then returned to the client to confirm receipt. Without stamped invoices it’s not possible to start legal proceedings if the buyer then doesn’t pay.
Another example applies if doing business with Sweden-based customers. In Sweden, collectors can only send dunning letters (approximately three, 10 days apart) and they can’t call the debtor. If there’s no response, the Swedish Enforcement Administration must be contacted.
With a few exceptions, most countries don’t have legislation to support collections like the UK does. Therefore, collectability will likely depend on your agreement and the aforementioned paper trail. That’s where our local hubs with local knowledge and expertise really come into their own.
Legal action – While necessary in some cases, legal action and going to court can be costly and take considerably longer than if both parties are UK-based. Local debtors know this. Therefore, this is ill-advised if speed of payment is a priority for you.
However, if we’re managing your debt, we’ll ask for both a cost estimate and timeframe estimate from our local partner before you have to commit.
Still have questions? Then check out our answers to debt collection FAQs, or help and support is just a click or call away. Get in touch.
Allianz Trade is the global leader in trade credit insurance and credit management, offering tailored solutions to mitigate the risks associated with bad debt, thereby ensuring the financial stability of businesses. Our products and services help companies with risk management, cash flow management, accounts receivables protection, Surety bonds, Business Fraud Insurance, debt collection processes and e-commerce credit insurance ensuring the financial resilience for our client’s businesses. Our expertise in risk mitigation and finance positions us as trusted advisors, enabling businesses aspiring for global success to expand into international markets with confidence.
Our business is built on supporting relationships between people and organisations, relationships that extend across frontiers of all kinds - geographical, financial, industrial, and more. We’re constantly aware that our work has an impact on the communities we serve and that we have a duty to help and support others. At Allianz Trade, we’re strongly committed to fairness for all without discrimination, among our own people and in our many relationships with those outside our business.
