The number of bad payers is increasing - can you steer clear of them?
For the first time in 8 years, we are seeing an increasing number of customers who are finding it harder to pay their bills. This can result in a registration as a bad payer in RKI Registered - and at our own online platform Qatchr.
The reason for the increasing number of bad payers can be attributed to rising inflation, rising commodity prices and the general uncertainty that currently exists in the world. All of these factors affect the disposable income of Danish consumers, but especially those in the low-income groups.
In this article, we focus on bad payers and how you as a business can prepare for a new world where customers find it harder to pay and may even end up in the RKI register as a bad payer.
How to avoid bad payers?
There is basically no recipe for a company to avoid bad payers 100%. However, there are many ways to minimize them and good solutions if they don't pay.
Fundamentally, it's about believing in your customers, but this can be difficult in times when customers are being squeezed from multiple sides, financially.
With a credit check from our Qatchr service, you get a snapshot of a wide range of financial information about your customers, such as financial figures, any known debt collection cases, ability to pay, bankruptcy probability and much more.
You can use the service when new customers want to buy your product or to keep an eye on your customers' ability to pay and be alerted if they are identified as bad payers.
Remember that you can also find inspiration and e-books on debt collection, bad payers and credit rating on our blog and find concrete tips, such as the article 10 tips to avoid bad payers.
How do you deal with bad payers?
Fortunately, should it happen that a customer pays late or does not pay at all, there are good options for solving the challenge.
First and foremost, you should have a process in place within your company for how you deal with your bad paying customers and who does what. Do you send reminders, charge reminder fees, interest or call the customer?
One option could be to initiate the first steps in the reminder procedure yourself, such as sending out a reminder letter (with or without a reminder fee), possibly calling the customer and possibly sending a debt collection notice. After this, you should consider whether the case should go to a professional partner, such as a debt collection agency, to ensure proper collection.
What should you be aware of when dealing with bad payers?
You should be aware that there are a number of requirements and rules related to the reminder process and debt collection, including requirements for deadlines and amount limits. However, if you are not, your reminder letters and debt collection will not be valid and you will have to start over with your collection process.
If you entrust the case to a debt collection agency or lawyer, they will take care of everything related to the case for you - including all legal deadlines and thresholds.
Do you have bad payers right now - or want to avoid them?
Collectia is one of the oldest and most experienced debt collection companies in the Nordic region with over 150 years of experience. We help large and small companies with debt collection and credit assessments, regardless of the number of annual cases you have.
Would you like us to talk about your business and your options for debt collection and credit checks through a professional debt collection company? Then call us for a non-binding chat!
