Atradius Collections includes Asia Pacific in the new Global Collections Review

Amsterdam, 10 January, 2012 - Atradius Collections releases the results of its Global Collections Review in its fifth and fully updated edition. The new review now includes the Asia Pacific region for the first time, giving valuable insight on the collections behaviour of businesses all over the world and how they deal with overdue invoices.

Global B2B debt collections specialist Atradius Collections conducts and releases the review regularly to provide decision-makers in the credit management industry with an understanding of the dynamics and differences in collections practices by country and region.

In this edition, China, Hong Kong, Singapore, Indonesia, Taiwan and Japan have been included for the first time, along with further new additions Mexico and Greece. The edition focuses on 27 countries in total, examining the collections behaviour of businesses and their decision whether or not to engage an external partner, such as a collections agency, to collect outstanding payments.

The Global Collections Review reveals that the Asia Pacific region was most likely to employ a collections agency compared with respondents in the Americas and Europe, particularly when collecting debt from businesses located abroad. China and Taiwan stand out particularly, with 60% and 51% respectively, the highest figures for employing an external debt collections agency. Overall, companies in the Asia Pacific region were likely to use the most direct and forthright methods of debt recovery. These respondents were also more inclined to send a final demand letter than their counterparts from other regions. European and American businesses appeared to exercise more caution in the debt collection process.

Even within Europe there were differences in how debt is collected. The Netherlands clearly leads as the country with respondents most likely to employ an external collector versus relying on internal resources. 70% of the Dutch companies that responded have used external debt collections agencies, followed by Sweden and Austria with approximately 45%.

Success rate is a driving factor for businesses to opt for an external solution. Often asked about success rate, Raymond van der Loos, Managing Director at Atradius Collections, states, "The ability of external debt collection agencies to deliver results is the key factor for businesses to employ a debt collections agency. This again is confirmed by the Global Collections Review where respondents stated that their expectations are high. Success rate was ranked as the main reason to employ a debt collections agency, followed by working with a reputable agency that also offers a good price."

The Global Collections Review also revealed differences in collection behaviour by sector: companies operating in the financial services sector are the highest users of debt collections agencies, followed by companies from the raw materials, textile, metals and oil & gas industries who also stated their preference for using external resources.

The survey for the Global Collections Review was conducted amongst almost 5400 businesses throughout 27 countries worldwide, monitoring commercial debt collection trends and practices.

Click here to download the Global Collections Review full report.

About Atradius Collections

Atradius Collections, a business unit of Atradius Group, provides efficient, quick and flexible solution to recover domestic and international trade debts. With over 300 staff in 19 offices and an extensive network of collections specialists and lawyers worldwide, Atradius Collections serves more than 15,000 customers and handles, on average, 100,000 cases a year. Over 85 years of global credit management industry experience, uniquely positions Atradius Collections as a worldwide leader in business-to-business debt collections. Please visit www.atradiuscollections.com for more information.

For further information

Atradius Corporate Communications
Denise Hung
Phone: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Andreas Tesch appointment to Atradius Management Board approved

Martie van Velsen and Eric den Boogert named directors of Atradius Global & Oceania and Asia

Amsterdam, 8 December 2011 - Following the approval of Andreas Tesch to the Management Board of Atradius N.V., Atradius, one of the leading international credit insurers, has announced the appointments of Martie van Velsen to the position of Director of Global & Oceania and Eric den Boogert to the position of Director of Asia. These two senior appointments will not only strengthen Atradius’ market leadership in the segment of large multinational customers, but also further reinforce its position and growth in Asian markets.

Martie van Velsen (48) will be responsible for all aspects of the future development and servicing of Atradius’ multi-national customers. Martie joined Atradius in 1988, initially following a path in underwriting and Global Account Management in the Netherlands and the USA before returning to Amsterdam as Regional Director Global Benelux and her subsequent position as Commercial Director in 2002 before taking on her present role.

Eric den Boogert (42) will take responsibility for the further evolution and growth of Atradius’ business in Asian markets. Since joining the company in 1995, Eric has worked in commercial functions located in Breda, Cologne, London and Mumbai before relocating to Hong Kong in January 2006 to take on the post of Regional Sales Manager New Markets followed by further roles as Deputy Regional Director for New Markets and Country Manager for Hong Kong.

Atradius Chief Market Officer, Andreas Tesch, commented: "In Martie and Eric we have two outstanding people whose respective skill sets and experience make them a perfect fit for their individual roles. They are both very experienced, dynamic and can readily adapt to meet fresh challenges, which is absolutely vital to succeed in a rapidly changing global economy."

About Atradius

The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence through 160 offices in 42 countries. Atradius has access to credit information on 60 million companies worldwide and makes more than 20,000 trade credit limit decisions daily. Its products help to protect companies throughout the world from payment default risks associated with selling products and services on credit.

For further information

Atradius Corporate Communications
Denise Hung
Phone: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Aussie manufacturing increases protection against buyer risk

Sydney, 25 October 2011 – Australia's $100-billion manufacturing industry has increased its due diligence around trading credit for additional protection from supply chain insolvencies, a study into trade dynamics and credit supply has found.

The 2011 Atradius Payment Practises Barometer found that despite relative business confidence in Australia, manufacturing and wholesale/retail/distribution companies have raised their level of buyer risk monitoring over the last 12 months.

David Huey, Managing Director of Atradius in Australia and New Zealand, said the uncertainty in Europe and the United States combined with the increasing trend in Australian insolvencies has seen key industries increase their demand for good market intelligence and insurance protection.

"The results indicate some sections of Australian business are not blindly trading, but recognising the need for sound credit management via strong relationships, positive trading history and due diligence," says Mr Huey. "With a 'double-dip' recession forecast, we are seeing this in particular sectors and amongst larger companies."

Insolvency figures in Australia have been steadily rising over the last 12 months, according to recent ASIC figures. 1,049 companies entered external administration in August 2011, up 14 per cent from 921 in July, and 20 per cent higher than the 870 in August 2010, figures which Huey says indicated a lack of risk awareness in practice.

"Australian businesses, particularly small and medium sized companies, have to become alert to the dangers that their trading partners' liquidity levels can pose, particularly when payment practices start to become problematic. This is a big issue for Australia as 52 per cent of the businesses surveyed traded on credit, which is slightly higher than some of our Asian neighbours," he adds.

John Sutherland, Head of Risk for Atradius in Australia and Asia said the survey results indicated basic buyer diligence was more profound in Asian countries than on home turf.

"Asian countries were found to have significantly increased their use of monitoring buyer risks, using secured forms of payment, and checking a buyer's creditworthiness, however Australia's appetite for such credit risk tools showed no rise in activity," explains Mr Sutherland.

"This may explain why 62 per cent of Australian business cited 'insufficient availability of funds' as the reason behind export payment delays, but only some 48 per cent of Asian businesses experienced this."

"Australian practice is more risk averse when it comes to international trading, with only 15 per cent of all respondents providing credit for international trading, and 64 per cent of businesses stating they would offer no credit at all for international trades."

David Huey says this could be an indication of Australia's concerns about risks associated with international trading, which could be limiting a business' natural growth potential.

"Certainly international trading comes with increased risks, especially in these turbulent times, but risks can be mitigated through careful assessment and planning, such as trade credit insurance," he adds.

Other findings:

• Only 24 of Australian companies offered early payment discounting facilities, compared to the 48 per cent Asia Pacific regional average.
• 2.4 per cent and 3 per cent of B2B domestic and foreign receivables went uncollected by respondents, the lowest Asia Pacific level in the survey.
• The Australian DSO trend during the first half of 2011 was relatively unchanged. The 77 per cent stability figure averaged 10 per cent higher than the wider Asia Pacific region.
• Larger businesses were more likely to have started checking a buyer's creditworthiness, with 47 per cent of respondents reporting they use the practice.
• Australia is leading the league in customer payment behaviour, averaging 25 days for payment of accounts, one day less than average payment terms.
• The survey covered 194 Australian companies and more than 5,200 companies from 27 countries.

Download the 10th edition of the Atradius Payment Practices Barometer - Australia Report

Download the 10th edition of the Atradius Payment Practices Barometer - Overall Report

About the survey

The 2011 Payment Practises Barometer, completed by Heliview Research, surveyed more than 5,200 companies from 27 countries worldwide (Australia, Austria, Belgium, Canada, China, Czech Republic, Denmark, France, Germany, Great Britain, Greece, Hong Kong, Hungary, Indonesia, Ireland, Italy, Japan, Mexico, the Netherlands, Poland, Singapore, Slovakia, Spain, Sweden, Switzerland, Taiwan and USA) about the extent they use trade credit in their B2B transactions and customer payment behaviour.

About Atradius

The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence through 160 offices in 42 countries. Atradius has access to credit information on 60 million companies worldwide and makes more than 20,000 trade credit limit decisions daily. Its products help to protect companies throughout the world from payment default risks associated with selling products and services on credit.

For further information

Atradius Corporate Communications
Denise Hung
Phone: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Atradius survey finds 30% of invoices paid late; 3% defaulted on primary reason is that buyer had insufficient funds to pay

Amsterdam, 25 October 2011 – Payment delays and payment defaults continue to be a major issue for businesses around the world. According to the survey respondents of the latest Atradius Payment Practices Barometer, on average, 3% of the total value of the B2B accounts receivables was defaulted on. 30% of invoices were paid late, 12% of which extended past two months overdue.

The Atradius survey interviewed 5,399 businesses across 27 countries and sovereign states in Europe, North America and Asia-Pacific. Southern European countries which, on average, extend longer payment terms reported the worst problems with late payments from domestic B2B customers ; 54% of Greek, 43% of Italian, and 39% of Spanish domestic invoices were more than a month overdue (overall survey average 30%). 18%, 10%, and 7% respectively were more than 3 months overdue (overall survey average 6%). In the Asia-Pacific region, 14% of Indonesian domestic B2B invoices were reported to be more than 3 months overdue.

At overall survey level, approximately 3% of domestic B2B invoices resulted in payment default. In Europe, survey respondents in Greece and Italy reported the highest average payment default rates from B2B customers (6% and 5% of B2B domestic receivables were reported as uncollectable). In the Asia-Pacific region, similar payment default rates were reported by respondents in Indonesia and Hong Kong (all 5%). In North America this was the case in Mexico.

Insufficient availability of funds was cited as the prime reason for payment delays from B2B customers (66% of respondents reported it as a prime reason for domestic payment delays, 46% for foreign payment delays). To reduce payment delays and payment defaults, about 30% of the survey respondents increased their active credit management in the form of more frequent checking of buyer creditworthiness, dunning (payment reminders), or monitoring their buyers' credit risk. But usage of outsourced collections and credit insurance increased at a slower pace (about 15% of respondents increased their usage).

Isidoro Unda, Chairman and CEO of Atradius N.V. stated, "2010 has shown some improvement, but economic conditions in some markets continue to be precarious and insolvencies are again increasing. The survey results highlight the need for continued diligence in monitoring and managing trade credit risks. While many companies are taking prudent actions to improve the payment performance of their customers, more can be done to improve reimbursement rates when payments are defaulted on. Credit insurance and of outsourced collections can be valuable tools in limiting losses resulting from payment defaults."

Download the 10th edition of the Atradius Payment Practices Barometer

About Atradius
The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence through 160 offices in 42 countries. Atradius has access to credit information on 60 million companies worldwide and makes more than 20,000 trade credit limit decisions daily. Its products help to protect companies throughout the world from payment default risks associated with selling products and services on credit.

For further information:

Atradius Corporate Communications
Denise Hung
Phone: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it