As unpaid invoices mount in Asia, companies have become more open to engaging the services of collection agencies. In Atradius’ recently released Global Collections Review, 16% of Asia Pacific countries have reported that it is ‘highly likely’ for them to outsource their collections, while 34% say it is ‘likely’ for them to do so.
In light of this growing need, Atradius Collections is strengthening its activities in the South East Asian region by expanding its Singapore office. With immediate effect, the office will handle all collections activities for the region, serving customers as a local hub for the growing activities and catering to the increased demand in Asia.
The Singapore office now handles all cases from Bhutan, Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam. Atradius Collections’ Hong Kong office will continue to serve the Northern Asia region.
“South East Asia-based companies have had to grapple with the difficulty of convincing partners to settle their debts. While some companies do it within their organisation, outsourcing it to a debt collection agency makes the process smoother for all parties concerned,” says Raymond van der Loos Managing Director of Atradius Collections. “With this situation, it makes sense for Atradius to offer debt collection service in the region and serve our customers better by providing both local operation and customer services. It is the appropriate time now for us to strengthen and expand our activities in this region.”
Overall, Asia is the fastest growing region for international business and international trade. This region is of strategic importance to diversify growth for businesses. Many global companies have set up their regional office in Singapore, serving the South Eastern region.
Nevertheless, there are unexpected challenges, especially for Western businesses, when collecting in the region. Knowledge about local taxation and a country’s legal systems are critical, therefore trusting in local support is critical for its success.
Resources, such as international business organisations or chambers of commerce, help establish foreign-owned businesses with legal and credit management contacts and explain how the foreign system works.