Delinquent debtors may have the upper hand

 

Worldwide business liquidations for December, usually a quiet month, were up more than 100% year-on-year, and debt levels are now at an all time high.

In the first quarter of 2009, liquidations in were up 70% year on year.

In the US, personal debt is now at 130% of available income and in the UK at 170%.

“The risk of bad debts have increased exponentially. And against previous trends, organisations worldwide are arranging payment plans for delinquent debtors in favour of taking legal action,” says Coface operations manager Jacqui Jooste. Coface is the world’s second largest credit insurer.

In South Africa, companies are tending to agree on payment plans with outstanding debtors rather than repossess equipment or machinery. Banks have large stocks of repossessed items that cannot be liquidated, and it appears they are not keen to repossess any more goods.

Local debtors are also aware of a growing backlog in the courts. The time and effort taken to litigate is often not worth the cost to the creditor.

This is resulting in some debtors not taking legal action seriously. They know it could take years before their case goes to trial. To some extent, debtors have the upper hand.

“Coface, through its international offices worldwide, has launched a service to collect debts in and outside of South Africa, as far afield as eastern Europe, the far East and South America. Coface utilises the local legal framework, appropriate language and local business culture by working through its local offices,” says Jooste.

 

Companies operating in South African are able to hand over bad debts to Coface South Africa where they are collected in accordance with the relevant local-country legalities, such as the NCA in South Africa.

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Companies operating in South African are able to hand over bad debts to Coface South Africa where they are collected in accordance with the relevant local-country legalities, such as the NCA in South Africa.

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

Local debtors are also aware of a growing backlog in the courts. The time and effort taken to litigate is often not worth the cost to the creditor.

This is resulting in some debtors not taking legal action seriously. They know it could take years before their case goes to trial. To some extent, debtors have the upper hand.

“Coface, through its international offices worldwide, has launched a service to collect debts in and outside of South Africa, as far afield as eastern Europe, the far East and South America. Coface utilises the local legal framework, appropriate language and local business culture by working through its local offices,” says Jooste.

 

Companies operating in South African are able to hand over bad debts to Coface South Africa where they are collected in accordance with the relevant local-country legalities, such as the NCA in South Africa.

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Companies operating in South African are able to hand over bad debts to Coface South Africa where they are collected in accordance with the relevant local-country legalities, such as the NCA in South Africa.

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

“The risk of bad debts have increased exponentially. And against previous trends, organisations worldwide are arranging payment plans for delinquent debtors in favour of taking legal action,” says Coface operations manager Jacqui Jooste. Coface is the world’s second largest credit insurer.

In South Africa, companies are tending to agree on payment plans with outstanding debtors rather than repossess equipment or machinery. Banks have large stocks of repossessed items that cannot be liquidated, and it appears they are not keen to repossess any more goods.

Local debtors are also aware of a growing backlog in the courts. The time and effort taken to litigate is often not worth the cost to the creditor.

This is resulting in some debtors not taking legal action seriously. They know it could take years before their case goes to trial. To some extent, debtors have the upper hand.

“Coface, through its international offices worldwide, has launched a service to collect debts in and outside of South Africa, as far afield as eastern Europe, the far East and South America. Coface utilises the local legal framework, appropriate language and local business culture by working through its local offices,” says Jooste.

 

Companies operating in South African are able to hand over bad debts to Coface South Africa where they are collected in accordance with the relevant local-country legalities, such as the NCA in South Africa.

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Companies operating in South African are able to hand over bad debts to Coface South Africa where they are collected in accordance with the relevant local-country legalities, such as the NCA in South Africa.

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

Local debtors are also aware of a growing backlog in the courts. The time and effort taken to litigate is often not worth the cost to the creditor.

This is resulting in some debtors not taking legal action seriously. They know it could take years before their case goes to trial. To some extent, debtors have the upper hand.

“Coface, through its international offices worldwide, has launched a service to collect debts in and outside of South Africa, as far afield as eastern Europe, the far East and South America. Coface utilises the local legal framework, appropriate language and local business culture by working through its local offices,” says Jooste.

 

Companies operating in South African are able to hand over bad debts to Coface South Africa where they are collected in accordance with the relevant local-country legalities, such as the NCA in South Africa.

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Companies operating in South African are able to hand over bad debts to Coface South Africa where they are collected in accordance with the relevant local-country legalities, such as the NCA in South Africa.

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”

 

Coface has also launched an information service for exporters giving relevant and up-to-date information on overseas companies through its international network of information providers in over 94 countries.

The information is used internally by Coface for its credit insurance business, making it valid for any external company, who are now able to access this information.

 

“Without good quality information on specific companies and markets, SA exporters could be at high risk,” says Jooste. “Working on accurate data reduces the risk of debtor defaults.”