In Focus Commercial Credit
If all else fails, how do we get paid? Companies never plan for debt to go beyond terms, so when they find themselves in a recovery situation, peace of mind should be taken from following the correct engagement process and paperwork. Of course, we need to recognise that this
does not guarantee payment. Engagement with debt-recovery specialists
and lawyers will help you understand the next steps to recovery. Understanding the collection rates in the specific country and the local late-payment laws is very important in working out if it is worth pursuing the debt in the first place. Using lawyers with international reach
and partners will help when suing under domestic law, and transferring to a local court in the client’s country for recovery. Credit controllers and credit managers
are extremely important to cross-border credit collections. Having access to a credit controller that
can speak the local language to the client can be the difference between getting paid on time or not at all.
November 2017
www.CCRMagazine.co.uk
Companies never plan for debt to go beyond terms, so when they find themselves in a recovery situation, peace of mind should be taken from following the correct engagement process and paperwork
If you are a small business with the
potential to expand into overseas markets, it is worth outsourcing this vital element of credit control to protect your firm whilst still being cost effective for the business. The benefits of effective credit control in cross- border credit collection are as follows: l Communication with your debtor in their language. l Finding out any smaller issues earlier in the invoicing process, rather than waiting until the end of the credit process. l If there are any issues stopping the debtor from paying outstanding invoices, credit control will act as an intermediary to resolve them. l Cementing your relationship with the accounts payable team to ensure you get paid on time, so you can cashflow forecast. lWeeding out the ‘can’t pays’ from the ‘won’t pays’. Effective cross-border credit collection
requires solid contracts and paperwork, language skills, host-country knowledge, and a planned recovery process in advance with strategic partners. CCR
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