THE ICTF TRADE CREDITORS
GLOBAL FORUM
Tuesday, 16 May, 2017
A. TRADE FINANCE – CREDIT INSURANCE –
SHIPPING
1. ACCEPTANCE OF DIRECT COLLECTIONS BY BANKS
We see a trend whereby Banks, due to compliance
issues, refrain from accepting Direct Collections. Have
other members experienced this?
2. UNCONDITIONAL PARENT GUARANTEES
Have participants ever had to enforce an unconditional
Parent Guarantee and were they successful in collecting
their receivables? Any issue with claw-backs?
3. THE ROLE OF TOP UP INSURANCE
We are looking into this product and find it very
expensive with limited availability. What is the
market like for top up insurance at the present time?
If any delegate is using it, are they able to provide
any feedback as to how they feel about it?
4. CREDIT INSURANCE – BENEFICIARY ENDORSEMENT
We are in the process of renewing our Credit
Insurance policy. Within the renewal the underwriter
has replaced a Foreign Entity Endorsement with a new
Term called Beneficiary Endorsement. Our
understanding is that if we do not accept this term,
then for each joint insured that is effected by the new
Endorsement we would need to have a separate
Policy, which may or may not be on the same terms as
the main policy holder. Can delegates or members
share any experiences or advice about this?
5. MARITIME TRANSPORT
For maritime transport, do delegates usually work
with Bills of Lading or do they also use Sea Waybills?
If so, when do they use Sea Waybills? Are they
restricted to a specific type of transaction or
customer?
B. WESTERN EUROPE
6. A NEW MANAGER IN EUROPE
I need to learn a lot about business in Europe;
specifically (i) What are the biggest concerns? (ii) What
are the typical terms offered? (iii) Do companies offer
Financial Statements? (iv) If no Statements are
provided, what are the typical ways to secure sales?
(v) Which countries represent the biggest risks? We
know it may be Russia, Greece, etc., but I am looking
at more substantive feedback, please.
7. THE DYNAMIC REGION THAT IS EMEA
This dynamic Region is experiencing many political
and economic changes. What risks do delegates see
during the remainder of 2017? What are the
elements that may jeopardise corporate revenues
and lead to regional business disruption?
8. GERMANY – ARTICLE 264 IN GERMAN LAW
Article 264 implies that (small) companies are exempted
from publishing their annual financials; Balance Sheet,
P&L. Instead, the financials are consolidated in another
(parent) entity. In this way, visibility on a current
customer is nil, as the consolidated financials hide the
strengths and weaknesses of the consolidated company.
Some companies sign a P&L or Loss Agreement with the
consolidated, non publishing entity, but there are a lot
who sign no Agreement at all. How do other members,
with no credit insurance, manage this and how do they
secure the risk with their 'non-publishing' customers?
9. GREECE
Have members experienced any improvements in
payments from Greece over the past 6 months?
10. ITALY
a. Have members experienced increased payment
delays or bankruptcies in Italy over the past 12
months?
b. What is the view of members about the
situation with the banking sector in Italy and the
high level of public debt? Do you see a risk of
total meltdown and loss of confidence in the
Italian banking sector and, if so, what would the
consequences be for the economy in the
Eurozone and the Euro?
10. ITALY cont…
c. With SPAIN. Can delegates comment on the
payment methods currently used in Spain and Italy?
What experience is being seen with RIBA payments in
Italy and confirmations in Spain?
d. In managing SME relationships, I would welcome a
sharing of experiences in establishing credit
worthiness and local credit data resources.
11. PORTUGAL
Have members found government payments in
Portugal delayed over the past 12 months?
12. SOUTHERN EUROPE – THIRD PARTY COLLECTION
AGENCIES
Can anyone share their experience in dealing with
Third Party Collection Agencies in Southern Europe?
13. UNITED KINGDOM
a. Now that Article 50 of the Treaty has been
invoked, although it will take 2 years to complete
the BREXIT negotiations, have members taken any
measures from a credit management perspective to
mitigate risks?
b. Have members experienced an increase in the
number of UK customers having trouble in paying
to terms and/or an increase in those going into
insolvency?
C. CENTRAL AND EASTERN EUROPE
14. CENTRAL EUROPEAN OPERATIONS
Given current regional tensions, I am interested to
learn how those multinationals present are viewing
their operations in, or in the proximity of, Russia and
Turkey.
15. RUSSIA
What are members current experiences in trading
with Russia? Are you getting paid? Are you selling on
Open Account or Secured Terms?
16. TURKEY
a. Do delegates apply a stricter credit approach
since the outcome of the last referendum on the
extension of political power for the President? If
yes, what kind of measures have been taken?
b. From both a short and long term perspective,
what additional risks may we face following the
latest referendum result?
D. MIDDLE EAST
17. MIDDLE EAST BUSINESS ACTIVITY – PARTICULARLY
SAUDI ARABIA
Have members noted any upturn in business activity in
the Middle East during 2017 and in particular in relation
to Saudi Arabia?
18. EGYPT
We have an office in Egypt with local trade and
we are looking for them to have a credit insurance
policy for their local market. However, we have
been told that no insurance policies are written
out of Egypt. Is this true?
E. AFRICA
19. LOCAL CURRENCY SALES IN AFRICA
Can delegates please share the risk mitigation tools
they use for local currency sales? How is credit
assessment achieved with limited access to financial
information? Is the banking fraternity able to offer
any support?
AFRICA cont…
20. FINANCIAL SUPPORT FOR SALES TO AFRICA
Can members recommend any preferred financing
support – Letter of Credit/Credit Insurance/Bank
Guarantees/Parental Guarantees – for the African
market, especially middle Africa –
Kenya/Rwanda/Nigeria/Ghana – and their
experiences in enforcing such support?
When are extended payment terms acceptable?
F. FAR EAST
21. CHINA
The Chinese economy is reported as having
weakened across the board in recent months. Have
members applied any stricter credit management
rules in this market based upon this disturbing
information?
22. INDONESIA AND VIETNAM
Can members please share their current payment
experiences in Indonesia and Vietnam; payment
delays, payment plans, the enforcement of
guarantees?
G. SOUTH AMERICA
23. BRAZIL
How are members finding business in Brazil? We see
no positive developments there. Is the situation
impacting your business in other South American
markets?