Debt collection as financial service is a totally new business sector in Turkey. Until recently, payment issues were either being settled after lengthy Court procedures, or solved behind closed doors with a personal settlement. Consultancy companies did not at all play any role and pre-legal collection has never been an option to foreign creditors. At the same time, due to increasing internationalization of Turkish companies and exceptional economic growth of the Turkish economy, the total value of foreign accounts payables has been rising steadily.
Hitherto, a company which was facing bad debts in Turkey was bound to experience complicated administrative requirements and costly legal procedures. Moreover, cultural differences and long distances created additional hurdles in terms of communication. By launching its pre-legal collection services, DAT-Consultancy can genuinely be regarded as a pioneer company in bridging the gap between culture and trade. By combining a personal approach, mediation and judicial solutions in a unique all-inclusive package it has greatly reduced financial risk for foreign companies trading in Turkey.
Within two years their activities on debt collection have developed into a full-fledged collection service, furthered by its appointment as GCS-Group’s official representative in Turkey as of December 2009. A focused approach on pre-legal procedures such as registered demand letters, notifications, regular collection calls, and company visits has proven itself to be very effective in reaching payment agreements in Turkey. In case a debtor remains reluctant to pay, DAT-Consultancy’s exclusive contract with its law-firm allows for low-cost legal proceedings in which lawyer fees become only due in case of a positive ruling. With a 70% success rate and an average time span of 2 months for solving any debt claim pre-legally, DAT-Consultancy’s tailored services can be called highly successful.
DAT-Consultancy has received much positive comment on debt collection efforts from both creditors as well as Turkish debtors. They are often happy to ‘finally being able to discuss the problem’ with someone from their own cultural background, speaking their language, and showing, in their eyes, ‘understanding’ for their position. This kind of reactions stress out the difficulties of Turkey’s rapid economic development: the need to be able to address issues in the native language and the necessity of understanding Turkish social norms. Concluding, all of this makes debt collection in Turkey a distinctive practice, with potentially high returns.
DAT-Consultancy is a member of the ACA, the association for credit and collection professionals, and the official representative of GCS-Group in Turkey. DAT Consultancy operates on the basis of no-cure, no fee. A commission-based collection ensures a professional and success orientated approach. For more information about debt collection in Turkey visit www.dat-consultancy.com