Comparatively good payment morale in Switzerland
According to an international study, it is easiest to collect outstanding receivables in Sweden, Germany and Finland. Switzerland is in sixth place in this ranking.
The global economy is under pressure, payment morale is declining and insolvencies are becoming more frequent again as a result. Fast and simple debt collection procedures are critical for companies in this tight economy. Allianz Trade, a market leader in credit insurance, has ranked 49 countries in terms of collection complexity. Payment practices and court and insolvency procedures in each country were evaluated. "Switzerland has well-functioning mechanisms," comments Jan Möllmann, co-CEO ad interim Allianz Trade Switzerland. "This is not the case in other countries. Especially in the Middle East, Asia and Africa, it can be much more complicated for companies to get their money."
Europe is the easiest place to collect debts
The experts analyzed over 40 indicators around local payment practices, court and insolvency procedures. The resulting ranking ranges from a score of 0 (low complexity) to 100 (very high complexity). The result shows: In Europe, collection procedures are the simplest. Eleven countries with the lowest complexity scores are in Europe, followed only in twelfth place by New Zealand, the first non-European country. The countries with the easiest collection procedures are Sweden (score of 30), Germany (30) and Finland (32). Bringing up the rear globally are Saudi Arabia (91), Malaysia (78) and the United Arab Emirates (72). Complexity in these countries is almost three times higher than in Western Europe.
Switzerland in 6th place - also thanks to good payment practices
Switzerland ranks among the top 10, in 6th place (score of 33), with good payment morale, fast legal proceedings and a clear legal situation. Good accounts receivable management is nevertheless an imperative: "The biggest challenge is when customers become insolvent," Möllmann explains. "For small and medium-sized companies in particular, failure to make payments can quickly threaten their very existence. Companies would fundamentally do well to check credit ratings and hedge against payment defaults."
Major differences among Swiss export partners
If we look at the rating for Switzerland's export partners, we see major differences. Switzerland supplies most goods and services to Germany. There, it is easy for companies to collect outstanding receivables (score 30). In second place among the most frequent export destinations is the USA, which has a score of 55, a very high level of complexity. Things also get difficult for defaulting customers in Italy. Switzerland's southern neighbor is the third most popular trading partner. Collection procedures are somewhat easier than in the USA, but are still comparatively complex (score 49).
Source: www.allianz-trade.com
