We are expanding into new countries/markets ( China, Mexico, Vietman, India, Germany, and Japan) and I am looking for insights in the arena of global accounts receivable. Does anyone know of any good third party providers who manage global accounts receivable? For those who manage it centrally from the US, any tips other than using Letters of Credit, etc.,? How do you "collect" when someone is overseas? Is there a resource of reputable "in country" collection agencies?
Managing Global Accounts Receivable
Answers
I have a great deal of experience in this issue. My best suggestion is you talk to one of the three major credit insurance companies. Atradius, Euler Hermes, and Coface. All three are large and can insure your accounts receivable. Most importantly, they can operate as your back-end credit department since they have databases for businesses all over the world. Once the credit insurer pays your claim in case your customer doesn't pay, they have the collection responsibility. Each are different in their appetite for certain industries and geographic areas. I would talk to all of them.
There is a reason why most businesses require prepayment in the currency of your country or documentary letters of credit. Collecting in a foreign country is nearly impossible. Credit insurance or getting prepaid for your goods / services is the only best way to protect yourself.
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Accounting