For many businesses exporting products or services overseas, their accountant is essential for practical support and guidance.
This is especially true when it comes to establishing effective credit management and credit control procedures.
“Sometimes, for delayed payments, you need a more specialised approach,” says Paul. “Professional debt recovery can achieve excellent results while taking the pressure off accountants.”
Considerations for Exporters
There are some procedures for credit management, along with best practices, that work the same for overseas customers as for the domestic market. However, there are also the specifics that exporters must consider.
“You need to know how the system will work in the country you’re dealing with,” cautions Paul, “and what sort of communications network it has.”
“When push comes to shove and you’re faced with bad debt with an overseas customer, it’s time to seek specialist support,” Paul suggests.
“When it comes to the nuts and bolts of international debt recovery, many accountancy practices will already have their hands full with other pressing concerns”
“What accountants offer exporters is essential but not limitless,” Paul states. “Debt recovery is a time-consuming business requiring a persistent concentration of resources. Outsourcing this task makes sense as the most efficient means of getting the results their clients require.”
Debt Recovery Benefits
A lack of local knowledge can deter recovery abroad, but, as Paul points out, specialists in international debt recovery will have established agents overseas.
“It’s about having a network to draw on, consisting of trusted debt recovery partners with the right degree of local insight and contacts.”
This helps save time, keep costs down and reduce risks. Debt collection means applying the right methods for specific situations, working within local constraints to ensure maximum effectiveness.
“It’s often the case that accountancy practices will not have these kinds of international resources to draw on,” Paul says.
“As an international debt recovery specialist, we are expected to keep on top of debt recovery regulations governing different regions, and be aware of various reciprocal agreements between the UK and countries both inside and outside the EU”
Situations can become complex, which is why using an international debt recovery specialist can cut through the confusion while keeping the cost of debt collection down. It can also be a case of using expert knowledge to trace debtors in the first place.
“Accountants should be free to focus on the core services they provide to their clients,” Paul concludes, “while outsourcing the sort of demanding work which might otherwise detract from the high level of service they can provide.”
If you are an accountancy practice that wants to strengthen the cash flow for your clients with international debts, please call Premium Collections, on 0161 962 4695 or visit premiumcollections.co.uk.
For an accompanying read, please visit Exporters: How Trapped is Your Overseas Cash Flow?