A visit with Raoul Egeli, President of the creditor protection organization Creditreform (and much more)

“The chocolate chips are gone in a flash; we have top them up all the time,” Barbara Egeli marvels as she refills the basket. She is the wife of Raoul Egeli, whom we are visiting today, and we meet her in the foyer of the four-story headquarters of the Egeli Group in St. Gallen.

A quick phone call upstairs, and the next Egeli arrives, this time the daughter. She is Raoul Egeli’s assistant. Nathalie Egeli takes us to the fourth floor. Her brother is also there, and four other Egelis also work in the family business. Finally, we reach the corner office with a postcard view of the city. Raoul Egeli is waiting for us – hair perfectly slicked back, fashionable jacket, cool shoes. A big Appenzell cow on his belt buckle. “I'm a fan of Roger Dörig, the maker of Appenzell belts,” he explains.

Egeli seems relaxed and polite, but he is a man on a mission. And his mission is to protect creditors. His goal: to reduce the number of unpaid invoices from defaulting payers (the fact that, as a debt collection specialist, he is eliminating himself in the process, “doesn't bother him at all”). In Switzerland, “half a million people have payment problems,” says Egeli, and the same goes for 60,000 companies. “You have to be careful.” Egeli knows what he's talking about. Creditreform, the credit reference agency, issues credit information to check the creditworthiness of all companies and private individuals based
in Switzerland – “and not all of them have noble intentions,” says Egeli. He mentions the case of a gentleman who enters companies as an undertaker and then drives them to the wall. “There's money to be made in that, too.”

We have our charlatans, but isn't it one of the great strengths of Switzerland that we can trust each other? Here, a handshake is enough to seal a deal. Egeli replies: “Debt collection agencies in Switzerland handle an average of more than 5 million outstanding claims and loss certificates with a monetary value of more than 11 billion Swiss francs. Money that creditors are waiting for. Eleven billion francs – that's also the economic damage that companies and the state suffer every year because of payment defaults! That’s equivalent to the annual turnover of Swisscom.”

A gigantic sum that Egeli is fighting against. Prevention helps the most. The goal is to avoid the unpleasant situation of having to collect outstanding debts in the first place. “I don’t understand why everyone doesn’t automatically check the solvency of their business partner before providing a service against an invoice.“ A company or individual with a poor credit rating “logically” has a much higher default rate. “You can still work for them – but not on account, please.”

However, if you find yourself in a situation where you need to collect a payment, Egeli strongly advises that you hire a collection specialist. When asked about the dubious image of this group of professionals – salespeople with bomber jackets, caps, and baseball bats – Egeli really gets going: “This image is definitely wrong. As a collection agency, we are first and foremost intermediaries between creditors and debtors. To protect the interests of the creditors, we need not only good systems for the smooth processing of the many cases, but above all good employees with the necessary specialist knowledge of debt collection and bankruptcy law.”

A carpenter, butcher or graphic designer does not have to collect large invoices every day. “They don't have the expertise,” says Egeli, “and it's complicated because on the one hand their own livelihood is often at stake, and on the other hand, they don’t want to destroy their relationship with the debtor and want to work for him again in the future.” For these reasons, external support is advisable, not least to keep emotions out of the equation.

Raoul Egeli is President of Creditreform Switzerland (founded in 1888). He is also President of Creditreform International e.V., the association of 21 national companies. What cultural differences does he see in payment behavior? “In Eastern Europe, the war has had a strong impact on companies’ ability to pay," says Egeli. "In Southern Europe, payment terms are much longer anyway. But the North is ahead of us in terms of creditor protection, which is reflected in shorter payment terms." In addition to these two roles, Egeli is president and managing director of the family holding company, the Egeli Group. Founded by grandfather Egeli in the middle of the Second World War, the group now comprises eleven companies in four divisions at six locations. Its 220 employees generate annual sales of 45 million Swiss francs. For most people, that would be enough hats. Not for Raoul Egeli, who is also managing director of five local Creditreform Egeli companies, vice-president of Inkasso Suisse, a member of the Chamber of Commerce, and more. He also authors professional articles and books.

The company’s headquarters are located at the foot of the Bernegg in St. Gallen, and Raoul Egeli is regularly featured in the “Who's Who” celebrity directory. But his many commitments and smooth demeanor can be deceiving: Egeli is a fighter and above all a political mastermind. But not as a party member. He prefers to talk politics on a factual level and tries to exert influence through committees. Primarily, he cares about less bureaucracy and more protection for creditors. For example, the cost of collecting debts is so high that small claims are not even pursued. Companies simply write them off, leaving paying customers to foot the bill. “That can’t be right,” he says indignantly.

One last question: “When was the last time you forgot to pay a bill?” Egeli thinks for a long time. “Unfortunately, that’s happened to me, and it was very unpleasant. That’s why I always prefer to pay right away – even if it would be more economical to wait.”