SACE SRV: SACE Group’s Answer To Debt Recovery

SACE is the financial insurance partner supporting Italian companies throughout the export and internationalisation processes: from the initial stages of defining a contract to last-resort services such as debt recovery. It was precisely with this goal that, in 2007, SACE established SACE SRV, the Group’s company specialised in business information and global debt recovery and restructuring solutions, supporting Italian companies, especially SMEs.

SACE SRV offers its credit restructuring and recovery services to non-insured companies as well as insured clients, making available its over 40 years of experience in credit managementfor foreign counterparts.

Its role has become increasingly relevant due to recent global events and the consequent economic disruptions.

Risks on the global scenario continue to be significant and more frequent, both from an economic and geopolitical point of view. Indeed, while the pandemic-related health impacts are beginning to show a gradual – albeit slow – reduction, difficulties on the global value chain front, in addition to rising energy prices and high levels of debt, are undermining the stability of the financial sector, both for public and private economic players, particularly in some emerging economies.

Moreover, the Russian-Ukrainian conflict is causing major problems on the global supply side. In fact, the two countries are major exporters of key raw materials: energy (natural gas and oil), agricultural (cereals and fertilisers), industrial (metals such as palladium and nickel) and inert gas (e.g. neon used in the production of lasers, which in turn is used to manufacture microprocessors).

Given the global scenario, and taking into account that the number of bankruptciesreached a historically low level during the pandemic, an increase in insolvencies worldwide seems inevitable in 2022 and it is, therefore, essential for companies active in foreign markets to take the appropriate measures.

This is precisely SACE SRV’s mission.

In addition to specialising in global debt recovery services and asset management, SACE SRV plays a key role within the SACE Group as the only company in Italy with a certified experience in debt recovery in the most remote geographies, characterised by a high complexity associated with credit protection.

Moreover, SACE SRV manages all extrajudicial, judicial and insolvency proceedings for credits, including those not covered by insurance, through a specialised team and more than 200 local partners worldwide. Judicial recovery activities are carried out in partnership with international law firms, based locally, with advantages on both costs and speed of action.

The service offered by SACE SRV is critical as it represents the last resort solution for companies which have difficulties collecting from their customers. Indeed, the service provides tangible help to “unlock situations” that would otherwise be compromised and burdensome for companies in terms of costs and lengthy collection times.

In order to strengthen its mandate, SACE SRV established a network of agreements with major banking institutions, such as Banco BPM and Intesa Sanpaolo, and companies in the financial sector, such as AMCO.

The agreements with the banks aim at facilitating the management, mobilisation and collection of trade receivables through debt recovery and restructuring services, as well as simplifying the use, underparticularly favourable terms, of the services provided by SACE SRV. In addition, training and informational meetings with companies interested in commercial debt recovery and restructuring services are also planned.

In the case of the agreement between SACE SRV and AMCO, the two partners work to collaborate and share best practices and know-how in the management of credits in both the domestic and international markets, with the purpose of improving effectiveness and efficiency in the valuation of non-performing credits.

These are all elements that contribute to strengthening the anti-cyclical role of SACE SRV, and of the SACE Group, in supporting Italian companies and the recovery of the national economic system.

“As a result of the complexity and uncertainty, mainly due to the escalation of the Russian-Ukrainian crisis, as well as the latest aftermath of the pandemic, the global picture clearly remains marked by downside risks, declared Valerio Ranciaro, Director General of SACE SRV. This scenario suggests that a worldwide increase in insolvencies will be inevitable in 2022. Only by relying on a specialised operator such as SACE – which is able to intervene in the most complex geographies thanks to a vast network of offices and local partners – is it possible to achieve a result even in the presence of special regulations that can compromise the creditors’ rights”.