Credit risk in international trade

If you are an exporter from or to Algeria or elsewhere, you will be aware of the risk of unpaid export payments. International trade presents additional risk factors (political, cultural, economic), rules of prudence rolled out accordingly, and above all, very specific international debt collection practices. It is established among the major players in international trade that the most optimal debt collection solution consists of entrusting its management of default risk to a local partner that specialises in legal and amicable recovery procedures. There are many reasons for this wise choice. As international collection specialists based in Algeria, we are well-placed to have this conversation with you. You are invited to read our feature “international debt collection Algeria)!

Risk factors

Exporting your products is a good strategic decision for boosting your growth and ensuring your sustainability; the local market often ends up showing its limitations. At first glance, the keys to success in international trade seem identical to those seen domestically: a rigorously established prospecting process, a well-established or even automated default risk management system and qualified personnel. However, when it comes to international debt collection, exporters are facing new challenges and obstacles:

1-In cultural terms: each country has its own systems, codes and customs of commercial practice. Attempts to standardize international trade rules have only partially eliminated the impact of cultural differences. Thus, the art of sending reminders to a recalcitrant customer always carries a local cultural connotation.

2-In legal terms: each country has its own laws regarding the legal recovery of outstanding debts. Moreover, each justice system presents its own structure (this truth is universal!). Consequently, only an Algerian debt collection firm can handle legal recovery of your Algerian debts under the best conditions.

3-In economic terms: a global economic or financial crisis negatively influences the solvency of your own client.

International debt collection: the solutions

To minimize the risk of international default, all exporters need to be extra vigilant. It is not only a question of evaluating customer risk by evaluating its financial health, but also of assessing country risk. Likewise, using the payment techniques that offer the most guarantees or taking out insurance against the risk of non-payment can relieve your cash flow and limit damage. You can also favor caution and be very selective of your foreign customers – even if it means missing out on great export opportunities! – or even create an internal credit risk department dedicated to the management of your importer customers. All of these costly solutions are within your reach and are more or less easy to roll out, but they all have their limitations, drawbacks and weaknesses. Those who champion international export have dismissed these solutions, and preferred the optimal solution: joining forces with a local partner and entrusting it with its customer management, both for assessment and for follow-up and collection.

International debt collection in Algeria: Algeria Collection Services EURL offer

Our collection agency, ACS EURL, based in Algiers with partners in Morocco and Tunisia, has been chosen by large-scale economic players to collect their debts on the Algerian and Maghreb market. Our understanding of Maghreb trade and its economic fabric, as well as the quality of our infrastructure, have motivated this alliance based on trust and oriented towards the long term.

Our network of partners covers both large international collection agencies and local third-party players (law firms, notaries, bailiffs, experts, etc.). Being established in a country with a high import volume, we have made international debt collection our core business. Our recovery experts dedicated to export risks are competent to:

• Communicate with your departments and identify your objectives;
• Adapt to your own customer risk management system;
• and above all, roll out your strategy and your objectives in recovery actions perfectly adapted to the legal and cultural context of Algeria.

Our international debt collection rate testifies to our know-how (+ 70%). . Do not miss out on export opportunities on the Algerian market.

Contact us at contact@dzacs.com for an assessment of your customers and / or entrust us with the collection of your debts located in Algeria.