A survey of corporate credit risks management in Asia Pacific region was conducted in the fourth quarter of 2012 by Coface, a leading global credit insurance group. The survey revealed that corporate payment experience in the region generally worsened. Companies in Australia, China and India suffered more non-payment. Sectors of building & construction, IT, ISP & data processing, textile, clothing & shoes and household electric & electronic appliances are at higher risk. Companies in the region are less optimistic about recovery of global economy in 2013.
Unfortunately all too often companies default on their payments to vendors or file for bankruptcy protection. Various factors may be the cause: Management deficiencies, financial restructuring, regulatory changes, product liability exposure, legal maneuvering, political upheaval, or even, as recent history has proven, regional natural disasters. No matter how wonderful we feel our customer is, a creditor may never know what future circumstances will diminish the customer’s ability to pay. Accounts Receivables (Credit) Insurance can be an indispensable credit risk management product reducing risk in an unpredictable marketplace. This Webinar will be of value to credit, financial or sales professionals who want to learn the basics of credit insurance and how using credit insurance may help their company. Specifically the speaker will cover: • Protecting Accounts Receivable from bad debt loss • How credit insurance is priced • How claims are settled • How credit insurance can be used to expand sales • Enhancing financing options • Compliance with Sarbanes-Oxley
Credit insurance common misconceptions and can it be a useful tool finalIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd. presented 4-th of November 2014 a webcast “Credit Insurance: Common Misconceptions, and Can it Be a Useful Tool”, hosted by Commercial Finance Association (CFA), the international trade association dedicated to the asset-based lending and factoring industries.
The webcast was attended by major banks, asset based lenders, export credit agencies, insurance brokers and credit insurers
Credit insurance is becoming increasingly important. Having the right payment terms with your customers is critical to your competitiveness and being able to grow your organisation with confidence. Ensuring that those terms of business are adhered to is not always in your control.
Without protection that your invoices will be paid, your business decisions are based on faith and past experience alone, which may not be the best grounds for ensuring business profitability.
According to the recent Atradius survey results for B2B payment practices, over 40% of invoices remain unpaid past due date.
This is where credit insurance and robust credit management policies can help. Credit insurance is as much about protection against bad debt as a facilitator for growth and maximising your profitability.
This short guide aims to help you understand how credit insurance can support your business, assess whether you really need it and give insight into why it is of growing importance.
Managing Credit Risk in Uncertain TimesWoon Wee Chun
I have contributed an article titled 'Managing Credit Risk in Uncertain Times' and it has been published in the Jan/Feb 2017 edition of Entrepreneurs' Digest, a bi-monthly magazine published by the Association of Small & Medium Enterprises (Singapore). It talks about the role and importance of Trade Credit Insurance (TCI) in today's ever complex business environment. Through it, I hope it will raise the market awareness among SME owners.
This infographic is published by Import Letter of Credit, the Trade Finance Company in Dubai. This talks about the trade finance services available for importers, exporters, contractors and manufacturers. To get trade finance from good rated European Banks, submit your requirements to us today! Our team will get back to you with a FREE Quote within 24hrs. For more info, visit: https://importletterofcredit.com/
To discuss with our experienced trade finance team,
Email us: support@importletterofcredit.com
Call Us: +971-4-5519699
Phone/WhatsApp/BOTIM: +971-50-4648761
Unfortunately all too often companies default on their payments to vendors or file for bankruptcy protection. Various factors may be the cause: Management deficiencies, financial restructuring, regulatory changes, product liability exposure, legal maneuvering, political upheaval, or even, as recent history has proven, regional natural disasters. No matter how wonderful we feel our customer is, a creditor may never know what future circumstances will diminish the customer’s ability to pay. Accounts Receivables (Credit) Insurance can be an indispensable credit risk management product reducing risk in an unpredictable marketplace. This Webinar will be of value to credit, financial or sales professionals who want to learn the basics of credit insurance and how using credit insurance may help their company. Specifically the speaker will cover: • Protecting Accounts Receivable from bad debt loss • How credit insurance is priced • How claims are settled • How credit insurance can be used to expand sales • Enhancing financing options • Compliance with Sarbanes-Oxley
Credit insurance common misconceptions and can it be a useful tool finalIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd. presented 4-th of November 2014 a webcast “Credit Insurance: Common Misconceptions, and Can it Be a Useful Tool”, hosted by Commercial Finance Association (CFA), the international trade association dedicated to the asset-based lending and factoring industries.
The webcast was attended by major banks, asset based lenders, export credit agencies, insurance brokers and credit insurers
Credit insurance is becoming increasingly important. Having the right payment terms with your customers is critical to your competitiveness and being able to grow your organisation with confidence. Ensuring that those terms of business are adhered to is not always in your control.
Without protection that your invoices will be paid, your business decisions are based on faith and past experience alone, which may not be the best grounds for ensuring business profitability.
According to the recent Atradius survey results for B2B payment practices, over 40% of invoices remain unpaid past due date.
This is where credit insurance and robust credit management policies can help. Credit insurance is as much about protection against bad debt as a facilitator for growth and maximising your profitability.
This short guide aims to help you understand how credit insurance can support your business, assess whether you really need it and give insight into why it is of growing importance.
Managing Credit Risk in Uncertain TimesWoon Wee Chun
I have contributed an article titled 'Managing Credit Risk in Uncertain Times' and it has been published in the Jan/Feb 2017 edition of Entrepreneurs' Digest, a bi-monthly magazine published by the Association of Small & Medium Enterprises (Singapore). It talks about the role and importance of Trade Credit Insurance (TCI) in today's ever complex business environment. Through it, I hope it will raise the market awareness among SME owners.
This infographic is published by Import Letter of Credit, the Trade Finance Company in Dubai. This talks about the trade finance services available for importers, exporters, contractors and manufacturers. To get trade finance from good rated European Banks, submit your requirements to us today! Our team will get back to you with a FREE Quote within 24hrs. For more info, visit: https://importletterofcredit.com/
To discuss with our experienced trade finance team,
Email us: support@importletterofcredit.com
Call Us: +971-4-5519699
Phone/WhatsApp/BOTIM: +971-50-4648761
This coming renewal will mirror the last with an overall average low single digit general increase across the International Group. While most Clubs have enjoyed a trouble-free year with strong technical underwriting results, there has been no joy from investment income.
The days of heavily relying on investment income are long gone, but this naturally still has an influence on the final results of each year. If last year’s returns were gloomy, then the current position is positively dire with a number of Clubs reporting negative investment returns. Conservative investment programmes following the meltdown of 2008 has negated the volatility, but the pressure caused by the present financial environment will no doubt figure heavily in renewal negotiations.
The most precious asset of any business is its executive team. Part of the struggle that closely held (and public) companies face is their ability to attract and retain key employees. An executive bonus plan may be an effective strategy to hire away from your competition and keep your top people with your firm.
"The Case For Annuity," by Phil Wasserman. This book shows an unbiased view on annuities, how they can offer you secure income streams, and growth potential while having no market risk or volatility.
I recently returned from the MDRT meeting in Vancouver BC, many of the "big hitters" are using the "Living Benefit" policies because of the "added value" they bring to the client along with "something new and different" to the insurance discussion ( i.e. do you have the "old" insurance or the "new" insurance? etc.) They also mentioned the statistic that 80% of the people will have a Heart, Stroke, or Cancer concerns ( Critical Illness) in their lifetime.
Manage Your Customer's Payment With Speed, Accuracy, Reliability and Savings, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
This coming renewal will mirror the last with an overall average low single digit general increase across the International Group. While most Clubs have enjoyed a trouble-free year with strong technical underwriting results, there has been no joy from investment income.
The days of heavily relying on investment income are long gone, but this naturally still has an influence on the final results of each year. If last year’s returns were gloomy, then the current position is positively dire with a number of Clubs reporting negative investment returns. Conservative investment programmes following the meltdown of 2008 has negated the volatility, but the pressure caused by the present financial environment will no doubt figure heavily in renewal negotiations.
The most precious asset of any business is its executive team. Part of the struggle that closely held (and public) companies face is their ability to attract and retain key employees. An executive bonus plan may be an effective strategy to hire away from your competition and keep your top people with your firm.
"The Case For Annuity," by Phil Wasserman. This book shows an unbiased view on annuities, how they can offer you secure income streams, and growth potential while having no market risk or volatility.
I recently returned from the MDRT meeting in Vancouver BC, many of the "big hitters" are using the "Living Benefit" policies because of the "added value" they bring to the client along with "something new and different" to the insurance discussion ( i.e. do you have the "old" insurance or the "new" insurance? etc.) They also mentioned the statistic that 80% of the people will have a Heart, Stroke, or Cancer concerns ( Critical Illness) in their lifetime.
Manage Your Customer's Payment With Speed, Accuracy, Reliability and Savings, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Trade Credit Insurance White Paper December 2008jlebendig
Get our most recent white paper...An Overview of Trade Credit Insurance here. Great reading, insightful and it will answer more of your questions. Don\'t have credit insurance yet? What are you waiting for? Contact me to discuss your options for protecting your company.
Trade Credit: the nature of the risk and its implications for SCFIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd., will presenting at 6th Annual Supply Chain and Finance Symposium, hosted by IE Business School and Banco Santander in 20-th of June Madrid. This top academic event featured professors from top universities, including Stanford, University of Chicago, University of Washington in St. Louis, Georgetown University, IE, Singapore Management University, Imperial Business School and others, corporates (such as Metro Group and BMW) and banks (Santander and HSBC).
The presentation was focused nature and unique characteristics of trade receivable risk, differences it presents with other risk types, and implications of SCF structures to the risk transformation, distribution and management.
The anscersX multibureau business trade credit report includes the best elements from business credit reports from Dun and Bradstreet, Equifax and Experian, allowing customers to get the information they need to make a credit decision about their customers.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Trade Credit Risk study in Asia Pacific by COFACE
1. Corporate Credit Risk
Management in
ASIA PACIFIC
COFACE in Australia
Level 10, 68 York Street, Sydney
Level 18, 600 Bourke Street, Melbourne
Tel. 02 8235 8600 Email: au_info@coface.com
ww.coface.com.au
2. /
Who Is Coface?
Coface is the 3rd largest credit insurer worldwide, offering
companies around the globe solutions for trade receivables
management.
Direct subsidiaries in 66 countries and able to provide credit
insurance and credit management services in 97 countries via
CreditAlliance network.
Each quarter, Coface publishes its assessments of country risk for
158 countries, based on its unique knowledge of companies'
payment behavior and on the expertise of its 350 underwriters.
35, 000 clients in credit insurance worldwide
The manager of the French government export guarantees.
3CORPORATE CREDIT RISK MANAGEMENT IN CHINA
3. /
Coface Global Offer in Credit Insurance
Availability in 97 Markets
3
This view shows the difference
between the countries where we
offer credit insurance directly and
countries where we offer credit
insurance by using partners or
fronters.
CORPORATE CREDIT RISK MANAGEMENT IN CHINA
4. /2012 Survey of Corporate Credit Management in Asia Pacific
Coface ’ s Presence in Asia Pacific Region
China (Shanghai, Beijing)
• Coface (Shanghai) Information
Services Co. Ltd.
South Korea (Seoul)
• Coface Services Korea Co.,
Ltd.
India ( Mumbai, Bangalore and
New Delhi)
• Coface India Credit
Management Services Pvt.
Ltd
Thailand (Bangkok)
• Coface Services (Thailand)
Co., Ltd.
Singapore – direct license
• Singapore Branch
Malaysia (Kuala Lumpur)
• Coface Services (M) Sdn
Bhd
Vietnam (Ho Chi Minh City)
• Coface Services Vietnam Co
Ltd
Australia (Sydney, Melbourne) –
direct license
• Australia Branch
Hong Kong (Regional Office) –
direct license
• Hong Kong Branch
Japan ( Tokyo, Osaka) – direct
license
• Japan Branch
Taiwan (Taipei) – direct
license
• Taiwan Branch
Indonesia (Jakarta)
• Coface Indonesia
Representative Office
4
5. 2012 Survey of Corporate
Credit Risk Management
in Asia-Pacific
1. Survey background
2. Corporate Credit Risk Management Practices
3. Overdue situation
4. Sector Analysis
5. Credit risk mitigation strategy
6. Summary & Coface Country Risk Assessment
52012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
6. /
Survey Background
Objectives:
To understand the general status of corporate credit risk management practice
To understand payment experience of companies
To analyze trade credit risk of different sectors
To compare the payment situation and credit risk management practices across the Asia-
Pacific
About this survey:
Survey took place from October to December 2012
Total number of interviewed companies: 2,274 companies
(Australia) 84 ; (China) 1021; (HK) 412; (India) 312; (Japan) 205; (Taiwan) 215; (Singapore –
1st year) 45
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 6
8. /
Profile of Interviewed Companies in Asia-
Pacific
8
2012
• Samples from different countries across the region and reflects the
industry concentration of each location
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
9. /
Profile of Interviewed Companies in Asia
Pacific
9
Sample sizes from SMEs to MNCs.
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
40%
26%
12%
22%
APAC
less than 10
10 to 50
50 to 100
more than 100
0%
10%
20%
30%
40%
50%
60%
70%
80%
AU CN HK IN JP SG TW
Company size of interviewed companies
total estimated sales revenue (million EUR)
11. /
62%
90%
80%
45%
86%
93%
76%
93%
86%
67%
76%
84%
94%
87%
82%
AU CN HK IN JP TW SG APAC
Offered credit sales to your customers in the past 12 months
Credit Sales – Popular in Asia-Pacific
11
More companies offered credit terms in APAC in 2012
Almost all Taiwanese companies continue offering credit terms to their buyers while less Hong Kong
companies offer credit sales in the region.
Sharp rise of companies in Australia and India offering credit sales is observed
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
20122011
12. /
50%
11%
29%
5% 5%
51%
13%
24%
6% 7%
0%
10%
20%
30%
40%
50%
60%
market competition your customers are
suffering from tight
liquidity and ask for your
credit facilities
you have more
confidence in your
customers
3rd party risk mitigation
in place (credit insurance
/ guarantee / sblc /
factoring)
others
Main reason of offering credit terms (APAC)
Main Reason of Offering Credit Terms
122012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
20122011
Market competition is still the main reason offering credit sales but more companies
express their buyers are suffering from tight liquidity. Even the confidence level decreases,
companies still need to offer credit terms in order to win more business
13. /
46%
31%
17%
4% 3%
44%
34%
17%
3% 2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
30 days 60 days 90 days 120 days More than
120 days
Average credit terms offered during the last
12 months - APAC
Average Credit Terms Offered
Average credit terms
maintains at 2011 level with a
small increase of companies
offering 60 days credit terms.
132012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
20122011
73% 67%
51% 49% 42% 44%
34%
42% 48%
22%
Average credit terms offered by companies
30 days 60 days 90 days and more
Companies in Japan and Taiwan are
most aggressive in offering long credit
terms (90 days or more) to their buyers
14. /
Weight of Credit Sales in Turnover
Companies in Australia, Japan, Singapore and Taiwan tend to have more
credit sales businesses (76% to 100% of credit sales in total sales).
142012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
20122011
59%
24%
20% 21%
58%
49% 48%
0%
10%
20%
30%
40%
50%
60%
70%
AU CN HK IN JP SG TW
% of credit sales of total sales during last 12 months
<30%
30%-75%
76%-100%
28%
38%
34%
31%
38%
31%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
less than 30% 30% - 75% More than 75%
APAC
16. /
Overdue Situation
2% increase of companies experienced overdue (unpaid after due date as indicated in
the commercial contract) in 2012
More companies in Australia, China and Taiwan report overdue
162012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
APAC
Japan
(42%)
India
(56%)
Hong Kong
(57%)
China
(77%)
Australia
(83%)
Taiwan
(77%)
Singapore
(68%)
17. /
Overdue Amount Compared to Last Year
14% more companies reported
their overdue amount increased
in 2012 compared to 2011, which
reflects a deterioration of general
payment situation in the region
More companies in China, Hong
Kong, Singapore and Australia
reported their overdue amount
had increased in 2012.
172012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
29%
26%
44%43%
23%
34%
0%
10%
20%
30%
40%
50%
increased decreased maintained
APAC
34%
56%
42%
24%
22%
43%
20%
0%
10%
20%
30%
40%
50%
60%
AU CN HK IN JP SG TW
Amount (dollars) of the overdue compared to last year
increased
decreased
maintained
20122011
18. /
Average Overdue Days
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 18
36%
33%
17%
5%
4%
5%
36% 35%
15%
5%
4% 5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
less than
30 day
30-<60
days
60-<90
days
90-<120
days
120-<150
days
150 days
or more
APAC
71% of companies keep their average overdue days below 60 days which is quite stable
compared to 2011.
More than 85% of companies in Japan and Taiwan are able to keep their average
overdue days shorter than 60 days.
Less than 70% of companies in Hong Kong, India and Singapore could keep their
average overdue days shorter than 60 days.
20122011
40%
35%
33%
31%
23%
14%
11%
29%
Singapore
India
Hong Kong
China
Australia
Taiwan
Japan
APAC
Percentage of companies with average
overdue days more than 60 days
19. /
47%
23%
17%
7%
6%
41%
22%
21%
8% 8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
less than
0.5%
0.5% -<2% 2%-< 5% 5%-<10% 10% or more
APAC
Over 6 months Overdue in Weight of Turnover
>2% of overdue as % of total
annual turnover
AU 43%
CN 36%
HK 49%
IN 60%
JP 14%
SG 53%
TW 11%
APAC 37%
192012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
20122011
Debt aged more than 6 months overdue has high chance to turn into bad debt. Companies with more
than 2% of their annual turnover are overdue debt for 6 months or longer could have liquidity problem
and have high risk of non-payment to their suppliers.
37% of companies carry more than 2% of their turnover unpaid for more than 6 months, an increase of
7% comparing to the result of 2011.
+7%
20. /
53%
20%
9%
7%
3% 3%
6%
0%
10%
20%
30%
40%
50%
60%
customer’s
financial
difficulties
customer’s
management
problem
fraud and lack
of morality (try
to avoid
payment)
commercial
disputes
External
Administration
or Insolvency
Changes in
company
structure
others
APAC
Main Reason of Overdue
202012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
2011 2012
Although customer’s financial difficulties is still the main reason of overdue, more companies express
their overdue is caused by management problem or fraud of their buyers.
Due diligence of buyers should be enforced before offering credit
21. /
What caused financial difficulties of buyers
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 21
60%
36%
15%
6%
15%
7%
5%
0%
10%
20%
30%
40%
50%
60%
70%
fierce
competition
impacting
margins
lack of
financing
resources
impact of rising
raw material
prices
heavy fixed
assets
investment
over inventory
level
rising bad debts
level
others
The main reason of overdue (under financial difficulties)
- multiple answers
High competition is still the major reason contributing financial difficulties of buyers.
Lack of financing resources also cause more companies into difficulties, particularly in India, China and
Australia.
23. /
Risky sectors in Asia Pacific
Most companies
reported overdue
Most companies
reported increased
overdue amount
Most companies
have average
overdue days > 60
days
Most companies
have more than
2% of their
turnover unpaid
for more than 6
months
Building &
Construction
4 3 2 1
IT/ISP & data
processing
5 1 2
Textile/ clothing/
shoes & other
apparels
1 5
Industrial machinery
& electronics
2 4
Paper & printing 2 3
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 23
Ranking in Asia Pacific Region
24. /
Average Overdue Days (APAC by sector)
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 24
21%
24%
24%
26%
26%
29%
29%
30%
38%
40%
41%
43%
textiles/clothing/shoes & other apparels
chemicals
industrial machinery & electronics
steel, iron & other primary metals
telecommunications & broadcasting
FMCG
household electric / electronic appliances
pharmaceuticals
transportation
paper & printing
building and construction
IT/ISP & data processing
Average overdue days
less than 30 days 30-60 days more than 60 days
APAC
29%
25. /
Overdue Ratio of past 6 months (APAC by
sector)
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 25
20%
30%
33%
34%
35%
35%
36%
39%
40%
43%
45%
61%
paper & printing
chemicals
steel, iron & other primary metals
transportation
pharmaceuticals
FMCG
industrial machinery & electronics
textiles/clothing/shoes & other apparels
household electric / electronic appliances
telecommunications & broadcasting
IT/ISP & data processing
building and construction
The ratio of aged overdue debts over 6 months as a percentage of your total annual
turnover
less than 0.5% 0.5% - 1.99% 2% or more
APAC
37%
27. /
Effective Ways to Act Against Overdue
272012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
74%
10%
6%
7%
3%
2012
APAC
28. /
Use Of Credit Management Tools
Trade credit insurance and credit
report are the mostly used credit
management tools .
Japanese and Taiwanese companies
have a higher percentage of using
credit management tools, trade credit
insurance, factoring and credit reports
in compare with other markets.
282012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
18%
12%
28%
16%
39%
4%
24%
15%
36%
19%
34%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Multiple answers
58% 60% 63% 67%
76% 80%
100%
66%
Percentage of companies using credit
management tools
29. 6
Summary & Coface Country Risk
Assessment
292012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
30. /
Summary
Credit sales continues to grow in the region with significant increase in Australia and
India.
Market competition is the major reason of offering credit sales. Lack of financing or
high financing costs makes buyers to request more credit from their suppliers to
finance short term capital, notably in China and India.
Overdue situation in Asia Pacific region deteriorated in 2012 which could be
observed from the increase of companies reporting overdue and the increase of
companies reporting growth in overdue amount compared to 2011.
The increase of companies with high overdue ratio in their turnover also reflects the
liquidity condition of companies in the region is not improving.
The sluggishness of US and European markets continues to hit the export of Asian
markets which is the major reason of deterioration of corporate payment in 2012.
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 30
31. /
Summary
Non-payment in Australia, India and China increased significantly in 2012.
The use of credit management tools increases from 61% in 2011 to 66% in 2012.
Japan and Taiwan companies have the highest usage of credit management tools
(100% & 80% ). They also demonstrate the best credit control with the lowest
overdue in sales turnover and the shortest overdue days even though they offer
more and the longest credit terms compared to other countries.
Building & construction, IT/ISP & data processing, textile/ clothing/ shoes & other
apparels, industrial machinery & electronics and paper & printing are the most risky
industries in the region.
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 31
32. /
Views On Global and Local Economy
Australian and Chinese companies are less optimistic on the recovery of global and local economy
Companies in Hong Kong, India and Taiwan are most optimistic on global economy.
Companies in India and Singapore are most optimistic on local economy.
Most of the companies in the region are less optimistic of global recovery in 2013. Much hope are
given to local monetary policies, industry incentive program, local infrastructure projects and recovery
of property markets
322012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
27%
18%
43% 46%
34%
42% 47%
31%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AU CN HK IN JP SG TW APAC
Will the slowdown of global economy end in 2013?
> 50%
< 50%
32% 32%
38%
48%
34%
49%
42% 37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AU CN HK IN JP SG TW APAC
Will the slowdown of local economy end in 2013?
> 50%
< 50%
(tend to be
optimistic
about global
economy )
(tend to be
pessimistic
about global
economy)
33. /
Europe still in recession in 2013
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 33
34. /34
Country Risk according to Coface
Available free at www.coface.com.au
Country Risk measures the influence of a country macroeconomic and institutional
evolution on companies credit risk
Country assessment
Assesses the average risk of payment defaults by companies in a given country
To rate countries, Coface combines economic and political prospects of the country, Coface payment
experience and business climate assessment
This assessment has 7 grades: A1, A2, A3, A4, B, C, D
Business climate assessment
Assesses overall business environment and more precisely whether corporate information is
available and reliable and whether the legal system provides fair and efficient creditor protection
This assessment has 7 grades: A1, A2, A3, A4, B, C, D
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC
35. /
Countries Assessments (as of Jan 2013)
Asia
Countries
Assessments
2013
GDP forecast
Australia A2 2.3
China A3 8.5
Hong Kong A1 2.2
India A4 6
Japan A1 0.7
Singapore A1 3.4
Taiwan A1 2
Malaysia A2 5
New Zealand A2 2.9
South Korea A2 3.9
Thailand A3 5
Indonesia A4 6.5
Philippines B 2.7
Viet Nam C 5.7
2012 SURVEY OF CORPORATE CREDIT MANAGEMENT IN ASIA PACIFIC 35
36. Contact
COFACE in Australia
Level 10, 68 York Street, Sydney
Level 18, 600 Bourke Street, Melbourne
Tel. 02 8235 8600 Email: au_info@coface.como@coface.com
www.coface.com.au
36CORPORATE CREDIT RISK MANAGEMENT IN CHINA
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Coface, provided that you do not make commercial use of it and that you indicate clearly that it originates from
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