READ MOREThe report also looks at potential future developments regarding the services offered by debt collection agencies while also identifying the factors that influence the collection process.
According to the 10th edition of the Global Collections Review, the majority of European companies do not expect a significant change in the quality of their customers' portfolios.
However, they expect an increase in payment delays, a deterioration of the credit risk situation and an increase in high-risk customers.
On the other hand, companies in the Americas and Asia Pacific appear to be more positive, expecting improvements in the ability of their customers to pay invoices on time due to expected improvements in the liquidity position of buyers.
Looking at the quality of the overdue receivables portfolio, with the exception of Europe, companies in all other regions expect improvements in the number and the age of outstanding invoices, as well as a decrease in the number of disputed invoices.
Trading on credit in both domestic and international B2B transactions is a common practice in all countries surveyed, however it is more prevalent in domestic transactions. One side-effect of offering credit terms is payment delays.
This year a shift in the recovery approach has been noted: more companies, especially in Europe and in the Asia Pacific region, have opted for legal collections more frequently with the cooperation of law offices.
Companies located in the Americas and Asia Pacific region have a different approach compared to those in Europe: they appear to be more inclined to adopt alternative solutions than (or in addition to) traditional debt collections services. ■