Atradius Collections sees a marked

increase in its caseload

Atradius Collections, which handles both credit insured recoveries and uninsured debt collections, has seen debt placements escalate enormously in recent years.  Compared to Q1 of 2008, the value of debts placed with Atradius Collections in Q1 of 2009 has increased by 109 index points.

When these two – insured recoveries and uninsured collections – are taken separately (see the chart below) the rise in the latter is considerably greater – up 181 index points since Q1 of 2008.

This difference to a large extent reflects the benefit to insured Atradius customers of the early warning system that is integral to our risk underwriting service: guiding customers away from risks that are most likely to result in loss.

We expect debt collection submissions to rise even more in the coming months, for two main reasons.  With credit management departments focusing intently on maintaining cash flow during the current recession, there is a trend to refer outstanding debts to external agencies like Atradius Collections at an earlier stage, and of course we continue to see a steep rise in insolvencies.

One positive sign amid all this is the increase in our success rate, which is helped by the aforementioned early debt placement, as this improves considerably the chances of successfully collecting our customers’ debts.