The Allianz Trade Collection Complexity Score measures the level of complexity relating to international debt collection procedures from 0 (least complex) to 100 (most complex). The score combines the expert judgment of Allianz Trade’s Collection specialists worldwide and over 40 administrative indicators relating to: (i) local payment practices; (ii) local court proceedings and (iii) local insolvency proceedings. The score is then split into a four-modality rating system: Notable (score below 40), High (score between 40 and 50), Very High (50 to 60) and Severe (above 60).
Where is the best place to collect a debt? Unsurprisingly, and like in the previous edition of our Collection Complexity Score (2018), Europe takes the lead. Indeed, European countries account for the top 10 easiest places to collect debts. dummySweden (with a score of 30), dummyGermany (30) and dummyFinland (32) are the best in class, with their scores remaining stable compared to our previous report. dummyNew Zealand is the first non-European country to be ranked (12th, with a score of 36, +1 point since 2018), followed by dummyBrazil (20th, 43, stable).
“In Sweden, Germany and Finland, the payment behavior of domestic companies is good and courts are efficient in delivering timely decisions, thus easing debt collection for companies. This stands in contrast to other European countries, such as France (10th, 36, stable), and Spain (11th, 36, -1 point), where collecting debt remains extremely complicated when the debtor has become insolvent, especially as far as unsecured creditors are concerned”, explains Maxime Lemerle, Lead analyst for Insolvency Research at Allianz Trade.
dummySaudi Arabia (91, -3 points), dummy Malaysia (78, stable) and the dummy United Arab Emirates (72, -9 points) are closing the ranking in 2022. Despite some improvements in court-related complexity, international debt collection is three times more complex in Saudi Arabia than in Sweden, Germany and Finland.