Igor Pirnat and Marko Belošević (Coface Adriatic): The Priority is Extrajudicial Debt Collection

Coface, a company specializing in debt collection, will introduce a new operational system at the beginning of next year that will allow clients to collect their receivables more quickly and efficiently. Igor Pirnat, regional manager (country manager) of Coface Adriatica, and Marko Belošević, analyst in debt collection for business clients at the company, claim that this will accelerate the resolution of collection issues currently faced by as many as 80 percent of companies.

How does Coface operate and what changes in debt collection has the coronavirus pandemic brought?

Pirnat: – Coface, as a global leader in credit insurance with over 75 years of experience and a unique global information network, is present in one hundred countries worldwide either directly or through business partners, providing access to a database of currently online available business information for over two hundred million companies. By involving us as a third party in the collection process, we help reduce risk, increase liquidity, improve cash flow, and recover invested capital, thus enabling clients to achieve better ratings and creditworthiness. The global Coface information network has enabled uninterrupted debt collection even during the coronavirus pandemic. While raw materials and production processes are becoming increasingly expensive, and purchasing power is decreasing, current government support measures for entrepreneurs have temporarily reduced the number of collection procedures, but once these measures are lifted, an increase in the number of such procedures, more blockages, and insolvency proceedings, as well as more difficult collections, is expected. Therefore, Coface experts assist in making the right strategic and operational business decisions using economic analyses and assessments by country and sector.

What is Coface’s share in the Croatian debt collection market and what are the future plans?

Pirnat: – Coface maintains a constant growth of its share in local and foreign markets with its innovative solutions. As many as 80 percent of companies face the problem of unpaid invoices, the main reason for initiating bankruptcy proceedings. One of the main missions of Coface experts is to protect companies from the risks of unpaid invoices, which can jeopardize business operations. Therefore, at the beginning of next year, Coface will introduce a new operational system that will enable clients to collect their receivables more quickly and efficiently.

What debt collection procedures does Coface implement?

Belošević: – Receivables are collected exclusively from business clients, i.e., B2B clients, and this collection is flexible and adaptable depending on the clients’ needs. The process ensures the collection of receivables at both local and international levels, and the collection process is tailored to the type of debt, the debtor, and the characteristics of the customer. In the collection process, we apply legal advice and procedures from specialized internal lawyers or partner lawyers, an efficient automated system for managing the collection of small and large receivables, and electronic data exchange between client systems and the Coface online database. The application of these measures significantly accelerates the collection of receivables. In addition to standard collection measures that include sending reminders, telephone contacts, personal visits, and negotiations on payment plans, Coface experts provide support at any stage of the invoice lifecycle. They rely on business information from the unique global information network of risk analysis iCON and closely cooperate with the Risk and Economic Research Department of the Coface group.

What is the total amount you are currently claiming from debtors and how much will you earn from it?

Belošević: – It is important to emphasize that Coface does not purchase receivables and that initiating the collection process is completely free of charge, and the commission is charged only after a successfully completed and positively collected receivable. The priority of our experts is extrajudicial debt collection while preserving good business relationships, which saves you time and effort, allowing you to focus on your core activities. Years of experience and expertise in debt collection instill confidence in our clients, and the number of cases is increasing, making it difficult to accurately determine the total amount we are currently claiming. Revenues will be known after the successful completion of the collection process.

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