- While debt collection globally is becoming slightly less complex, it is still a major problem for businesses around the world
- Saudi Arabia, Malaysia and the UAE are the countries where it is most difficult to collect debt, according to our expert analysis
- Around $4.2trn is at risk in countries where debt collection is most complex
The UK is certainly seeing a rise in insolvencies. According to there were 4,896 (seasonally adjusted) registered company insolvencies during Q1 2022, 6% more than in Q4 2021 and more than double the number for Q1 2021.
Our experts warned of a dimming economic outlook in our mid-year review, and in this context, UK companies may find that recovering debt will become even more important, and even .
Expert global analysis
In the third edition of the , our experts have analysed local payment practices, court proceedings and insolvency frameworks in to identify where it is most difficult to collect debt. They warn that around $4.2tn is at risk in those countries where debt collection is most complex.
The scores are of particular value to firms starting their export journey, allowing them to choose markets where, if the worst happens, debts can be recovered.
Maxime Lemerle, Lead Analyst for Insolvency Research at Allianz Trade, noted: “Collecting debt is critical, especially in an environment where business insolvencies are set to rise.”
The good news is that debt recovery in many traditional UK export markets is marked as ‘notable’, the most straightforward category (which is followed on our scale by ‘high’, ‘very high’ and ‘severe’).
Analysis shows that currently Sweden, Germany and Finland are the three best countries to recover international debt in the world, while it is much harder for foreign companies to recover their dues in Saudi Arabia, Malaysia and the United Arab Emirates.