Collecting from debtors in Asia.(international)

According to the U.S. Department of Commerce's International Trade Administration, of the top 30 countries for U.S. exports, 10 were from East Asia. In 2007, these countries bought $285 billion in U.S. exports, a 39% increase from 2002. As more and more U.S. companies do business with Asia, especially China, India and Southeast Asia, it's important that we understand how to collect from them.

Here are some collection tips I have gained from doing business on this side of the Pacific. If you plan on extending credit to Asian companies, already have some delinquent invoices or you're simply curious about collection techniques in different countries, then please read on.

Asians are more formal. In America, collectors are taught to build bridges with customers to understand their problems and hopefully get our bills higher up on their bills-to-be-paid pile. Don't do that here. If your collectors immediately try to become too inquisitive or informal with their Asian counterparts, they will raise alarms. It takes time to build relationships. Speak with formality. It builds respect and credibility over here. Avoid using names without a Mr. or Ms. When in doubt, go formal.

Gifts work wonders. Small tokens of appreciation for getting your payment out or clearing up a messy account are well-received. Asians look at not just the girl, but the effort that you took to send it. Gifts from your hometown work best.

Letters of recommendation. In the 13 years I've lived here I have seen less than five. Writing a letter commending your Asian A/P contact to his/her boss will be a pleasant shock. It will help get your bills paid faster. As a collection manager, I would even call my top collectors' families to express how proud they should feel of their son/daughter. It made a huge impact on the employee.

Beware of payment promise words like "try" "maybe" "see what I can do" "hopefully" "soon" "ASAP" and "most likely." These have an entirely different meaning here than back in the U.S. Here they usually mean, "We can't pay." Whenever you get a fuzzy payment promise, appreciate the debtor for giving it but express that you need to know how much will be paid and when.

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