The Complexity of Global Collections
Reconciling centralized collections and local payment practices
Seventy-eight percent (78%) of countries display poor payment culture and 54% have excessive DSO according to an Euler Hermes debt collection study. Figures like these show that diverging levels of debt collection complexity across the world are a real challenge for accounts receivables (AR) managers. That is why many organizations have or are in the process of centralizing AR activities in shared service centers, oftentimes on a global level, to achieve global debt portfolio visibility.
However, regional and local payment practices need to be taken into account as well. Collection strategies that might be effective in your home market might fail completely or be considered against local customs in other countries. These differences are what makes debt collections on a global level so difficult.
Find out how to master the challenges of international customer debt management and download our whitepaper “The Complexity of Global Collections".