The servicing arm of the Lebanese Credit Insurer (LCI), LCI Services, has expanded its debt collection services to cover 11 new African markets, which include Mauritania, Senegal, Gambia, Guinea Bissau, Guinea, Liberia, Ivory Cost, Ghana, Togo, Benin, Nigeria, Cameroon, Gabon, Congo, Democratic Republic of the Congo, Angola, Madagascar, Tanzania, Kenya and Sudan, in addition to existing markets which it covers.
“Businesses operating in the Middle East and Africa face recurrent difficulties in securing payments for the goods and services they supply. It is widely known that these regions achieve inadequate rankings when it comes to debt collection, and many businesses are suffering when writing off bad debt,” said Karim Nasrallah, General Manager of LCI. “With our expanded reach of debt collection services, we are supporting clients in their regional growth, and protecting their biggest asset–their trade receivables. The addition of these new markets will allow LCI to extend credit insurance cover in these markets in Africa,” he added.
Delays in payments are mainly due to lack of a proper payment behavior framework and a lenient payment culture in these markets, which leads to buyers defaulting and extending supplier credit limits for over 180 days. Debt collection is key for companies to recover outstanding balances. The Debt Collection Services offered include: recovery management, verbal negotiations, dunning letters, final demands, solicitor’s letters, drawing up repayment plans and legal action.