Collections: Challenges and trends for Latin American companies in 2024

[bitheerani319]

Effective accounts receivable management is a constant challenge for companies in Latin America, and 2024 is no exception. During this period, the sector faces an amalgam of challenges and trends that define the collections landscape, from adapting to legal changes to adopting innovative technologies to improve the customer experience.

What will you find in this text?

Collection challenges for companies in Latin America in 2024

1. Changes in Collection Laws

2. Need to strengthen data security

3. Adaptation to diversified communication platforms

4. Take action against the recession

Trends in debt collections 2024

1. A greater focus on customer experience

2. Integration of advanced technology

3. Empathetic communications to build lasting relationships

Collection challenges for companies in Latin America in 2024
If we are to talk about the challenges facing debt collection in Latin buy uk mailing list countries, it is imperative to discuss four key points: changes in legislation, security of debt collection information , diversification of communication channels and, of course, the recession experienced in Latin American countries.

1. Changes in Collection Laws
If we refer to the challenges in debt collection that we will continue to experience in 2024, we find ourselves facing a scenario similar to that of the previous year, where we must remain abreast of the changes in debt collection laws that apply to each country where we manage a portfolio. Keeping ourselves up to date will be the basis for ensuring compliance with these regulations in order to avoid problems or sanctions associated with any bad practice.

2. Need to strengthen data security
Another challenge facing the sector is ensuring the security of collection data. This has to do with the way we manage and administer the portfolio so that the information remains confidential and secure.

While many companies continue to use Google Sheets and Excel spreadsheets for such management, they should try to migrate to more secure tools such as accounts receivable software so that the information has more sophisticated security measures.

3. Adaptation to diversified communication platforms
Given that people (customers) increasingly use different means of communication, it is important that debt collection managers are prepared to adapt to different platforms that allow them to communicate with the clients in their portfolio.

For this purpose, it will be useful to use digital debt collection platforms , such as the aforementioned programs; with which, in addition to having different automated communication channels, these contacts will also be maintained in a secure environment.

4. Take action against the recession
As part of the debt collection challenges for companies in Latin America, we must also mention the recessionary outlook in countries on this side of the globe, which will affect default rates. This will force credit providers to re-evaluate their debt collection strategies to cope with the effects of the tumultuous years ahead.