International debt collection service launched

THE GLOBAL credit crisis has led credit insurer Coface South Africa to develop a Receivables Management business that will assist South African companies to collect debts locally and internationally. Companies operating in South Africa will now be able to hand over bad debts to Coface South Africa and the debt will be collected in accordance with the relevant local-country legalities such as the NCA in South Africa. “For companies exporting products internationally, bad debts can become a nightmare to collect,” says Coface CEO Garth de Klerk. “Language, business culture, legal systems and distance are all factors that make international debt collection one of the most challenging parts of the export process. “We expect to see a continued increase in bad debt claims as the pressures of inflation and the higher cost of money affects businesses,” he said.