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One of the fastest growing economies on the world business stage, Brazil, leads
the latest series of indispensable Country Reports, published by global credit
insurer Atradius.
With a rapidly growing domestic market making it a prime candidate for inward
investment and export growth from other countries, plus a low cost and fairly
well educated labour force, Brazil has been widely touted as the next country to
‘do a China’ and explode globally.
But as the new Atradius Country Reports make clear, if UK firms are considering
doing business with the country, they must take steps to protect their credit
sales and reduce the danger of bad debts.
Crucially, Atradius also offers an in-depth look into the payment culture and
legal framework of the country, so firms go in with their eyes open and know
what issues they face and what precautions they must take to ensure they get
paid.
Will Clark, Atradius’ Regional Director for UK & Ireland, NAFTA and Australasia,
explained: “Together with Russia, India and China, Brazil forms the BRIC
countries, economies that analysts and business experts believe will be the
shining stars in years to come.
"But as we are seeing with the problems that India and China and currently
dealing with, such massive growth is not without its problems.
“The Atradius Country Reports take a clear-eyed view of Brazil, as well as
Russia and a number of other exports markets, giving UK firms insight and common
sense advice on how to do business. There is no doubt that there is great
potential in these countries, but British businesses need to be prepared so they
don’t lose money.”
Key precautions
Some key precautions when planning to do business with Brazil having a tried and
trusted partner that can gain access to information agencies holding credit
data, insolvency findings and banking records on local businesses.
A local lawyer is also recommended, so companies considering doing business with
a Brazilian customer should consult a credit agency with operatives based in the
country.
Recovering a debt through the legal system in Brazil can take an average of 546
days, but the system is slow, expensive, inefficient and riddled with
corruption. If you have a Brazilian customer that will not pay up, it is worth
considering using an agency to help broker an out of court settlement or enter
into arbitration rather than pursuing them through court.
Source:
Credit
Control Journal
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