The Coface Group (Coface), the Paris-listed credit insurance and credit management group, has taken a majority shareholding in Frontline Business Information (Frontline) in Hong Kong. Frontline, formed in 1982, is a business credit information and pre-legal commercial collection agency. Coface's stake in Frontline closes Coface's gap in Asia in relation to alliances with local credit management and information companies, and gives a preview of Coface's expansionist plans into Greater China.
Coface considers Frontline a major factor in limiting its bad debts during the recent recession. "Frontline provided us with timely and accurate information on the state of bankruptcies in Hong Kong, as well as the tendencies in the marketplace during the downturn," says Richard Burton, general manager of Coface in Hong Kong.
In addition, Frontline has been, for many years, Coface's preferred source of credit information on Hong Kong companies. Coface is one of the largest users of credit reporting agency reports on Hong Kong companies.
Coface's stake is also very much a business venture. "We see a trend towards outsourcing of credit management," says Burton. "That is, the management of debt recoveries, invoice management and so on."
With Coface as its controlling stakeholder, Frontline also gains. It will have access to Coface's worldwide network of credit information, InfoAlliance, thus increasing its market for sales in business and credit information.
"Coface will provide us with solid expansion opportunities into the global marketplace," says Grace Wong, general manager of Frontline. In the other direction, members of InfoAlliance will also be able to sell business and credit information through Frontline.
