Trade Receivables in a Fragmented World

This technical report by Allianz Research presents an analysis of the complexities involved in recovering trade receivables across 52 economies, which collectively account for 90% of global GDP and trade. The report outlines the challenges posed by high business insolvencies, geopolitical uncertainties, and varying local payment practices. It introduces the Allianz Trade Collection Complexity Score, which assesses the ease of debt recovery in different countries. The findings indicate that Germany, the Netherlands, and Portugal rank as the most favorable countries for international debt recovery, while Saudi Arabia, Mexico, and the UAE are identified as the most complex. The report also notes that collection complexity has changed in many countries, with some improving and others deteriorating. Furthermore, it highlights the uneven rollout of e-invoicing practices across Europe, which complicates compliance for cross-border businesses. The report concludes with a regional analysis, revealing that the Middle East and Africa are the most complex regions for debt collection.