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Product Credit rating Collectia Debt collection company Qatchr Credit rating platform
Sebastian S.
21/10/2021

Avoid debt collection - minimize the number of debt collection cases through accurate credit scoring

For most companies, debt collection is an indispensable process for maintaining a healthy cash flow. But it is also a situation that most of our clients and their customers would prefer to avoid. Debt collection is often the result of a series of unpaid invoices that a customer chooses not to pay or is unable to pay in the moment. In the credit relationship, this affects both the creditor's and debtor's liquidity / finances.

Although debt collection resolves most debts where the customer has an outstanding invoice - debt collection undeniably takes time and resources. This is true whether you handle it yourself via so-called self-collection or let a professional debt collection company or debt collection lawyer handle it for your business.

As a professional and authorized debt collection company, we here at Collectia help both large and small companies with debt collection every single day when payment is not received. But what if you could avoid or minimize bad payers altogether and thus have fewer debt collection cases?

Read on to find out how our credit scoring product, Qatchr, can help you.

Qatchr: credit rating of individuals and businesses

Qatchr is an online service created by Collectia to make credit scoring and credit checks for individuals and businesses much easier and much cheaper than existing solutions on the market.

Qatchr is for companies that want to make a credit assessment of their customers - and thus make a background check on them before the work is performed, thus minimizing and perhaps completely avoiding debt collection - and bad payers.In addition to making a credit check of individual customers, Qatchr also offers an opportunity for ongoing monitoring of your business customers - so you will be notified if there are significant changes in your customers and their financial circumstances.

At the same time, Qatchr also offers data washing and advanced digital account creation with built-in KYC and credit scoring, making it possible to "data wash" your customers before they are created in your own system - ensuring that the data the customer has given you is correct and verified.

Why does a debt collection company want me to have fewer debt collection cases?

Collectia has more than 150 years of professional experience in debt collection and is an authorized Danish debt collection company. Why are we fighting for fewer debt collection cases?

We get this question from time to time, but the reason is simple: We want to make the Danes debt-free. We want a better economic environment in Denmark - and want to help Danish companies towards a better liquidity - and now also before a possible conflict / debt relationship arises between debtor and creditor. Therefore, we are an active part of credit rating and Qatchr.

Can I avoid debt collection altogether with a credit check from Qatchr?

A thorough credit check and background check of your customers will undoubtedly minimize the number of bad payers and thus your debt collection cases. Because with a professional credit assessment of your customers, you will get information that is often not available elsewhere. A credit check for business customers gives you insight into the customer's credit framework(credit score/credit rating, recommended credit limit and credit days), payment remarks in the debt register, bankruptcy analysis, negative observations, etc. In other words, a credit assessment is a snapshot of your customers' financial situation - and other relevant information about them, such as status, key figures and much more. For private customers, a credit check includes debt register checks, CPR validation, insight into housing conditions, recent change of address, information about vehicle encumbrances, etc.

But completely avoiding debt collection is not guaranteed by any professional credit rating, including Qatchr - but you will undoubtedly minimize them significantly. An analysis of the credit relationship and your credit risk always pays off.

If things go wrong, debt collection can still help

Even if you make effective use of credit scoring in your business, you may still find that one or more customers do not pay your outstanding debts during the year. In this case, of course, debt collection remains a valuable tool.


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