January 11, 2013
India, Turkey Under Credit Collections Industry Microscope
By Jody Ray Bennett
TMCnet Contributing Writer
Financial services firms, particularly those that identify, stud and analyze credit collections, have been doing business in the developed world for the better half of the 19th century. Nevertheless, as developing nations begin to build a financial infrastructure that often imitates that of the United States or former European colonists, financial service firms are putting growing countries under their microscope in order to identify new potential opportunities.
One such firm, Atradius Collections, a global credit management business, has recently placed India and Turkey among the countries it studies for its annual Global Collections Review. According to one report, “30 [percent] of all respondents had used a debt collections agency in the past 12 months. Across regions, respondents agreed that success rate was the driving factor behind choosing a debt collections agency.”
Atradius’ survey was “conducted amongst almost 6000 businesses throughout 29 countries worldwide, monitoring commercial debt collection trends and practices.”
Its global survey of countries, which now includes India and Turkey—two countries that have long been eyed by the international financial community for their impressive growth—were among those that headquartered “companies in the Asia Pacific region [that are] most likely to use direct methods of debt recovery [and are] more inclined to send a final demand letter than their counterparts from other regions.”
Companies that regularly participate in hundreds of international trade transactions also utilize forms of credit use surveys offered by Atradius to determine where strategic areas of business may occur in future quarters. Competitors similarly track this behavior and attempt to capitalize on areas of the global trade market that may seem less attractive to bigger companies. These surveys that provide data conducted from monitoring a wide array of debt collection trends and practices are valuable for businesses to maintain a competitive edge in the global marketplace.
As more developing nations begin to build their financial infrastructure, experienced financial trade and credit management firms will begin to turn their attention toward these countries in order to make strategic conclusions in their area of expertise.
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Edited by Braden Becker