Don't make these 5 mistakes when choosing a debt collection agency
Choosing the right debt collection company in Denmark can be a challenge - whether you already have a debt collection partner and are considering switching or you're looking for your first provider.
There are many competent providers in the market offering solutions for small, medium and large businesses. But with over 100 authorized debt collection companies in Denmark, it can be difficult to find the right partner - especially as many of them specialize in specific areas such as flight compensation or housing management that may not suit your needs.
At Collectia, we help companies that want to change debt collection companies on a daily basis. Based on our experience, we have compiled the 5 most common mistakes you should avoid when choosing a debt collection partner - regardless of your company size.
1. Compromising with no or poor online access to your cases
When you create, follow and close a debt collection case, it should be easy - and preferably with as little work for your bookkeeper or accountant as possible.
One way to minimize the work of debt collection is online access to your debt collection company.
✅ Choose a debt collection company with:
- An easy-to-use online platform where you can create, track and close cases.
- Direct communication via the system so all information is consolidated.
- Integrations to the most widely used accounting systems.
📌 Tip: Ask your prospective debt collection company for a demo of their online platform.
2. Overlooks price and fee structures
No two debt collection agencies are the same, and neither are their prices and fees. There are many ways a debt collection agency can make money in a collection process and there will often be a pricing and fee structure behind any agreement you enter into.
🔍 Be aware:
- Startup fees
- Commission rates - how much does the debt collection company keep?
- Gebyrer for mislykkede inddrivelser
- Minimum amount for cases
📌 Tip: Compare the pricing models of several debt collection companies and familiarize yourself with the terms.
3. Poor customer service and communication
A good debt collection process is not just about recovering money, but also about ensuring a good relationship between creditor and debtor. For some businesses, debt collection can be an essential part of their continued survival and operations.
✅ Ask your debt collection company about:
- Average response times to inquiries.
- How they communicate with debtors (letter, email, phone).
- How they keep you updated on cases.
📌 Tip: Choose a debt collection company that treats your customers professionally - both current and past.
4. Don't research the company's experience in your industry
No two debt collection cases are the same, but in our experience, cases in a particular industry can often have many similarities.
✅ Ask about:
- Do they have experience in your industry?
- What success rates do they have in similar cases?
- Can they adapt their strategy to your needs?
📌 Tip: If you're in a specialized industry (e.g. telecommunications, property management or retail), you should choose a debt collection company with proven experience.
5. Don't research the debt collection company's products and solutions
A modern debt collection agency isn't just a debt collection agency - it's often much more than just debt collection. Many can help you with the myriad challenges inherent in debt collection, before, during and after.
✅ Extra services to consider:
- Invoice service - ensures timely payment.
- Credit information - minimizes the risk of bad payers.
- Automatic dunning processes - so you don't have to manually send reminders.
- International debt collection - if you have customers abroad.
📌 Tip: Choose a debt collection company that can be a strategic partner, not just a supplier.
Get a no-obligation chat with a modern debt collection company
Hos Collectia hjælper vi hver eneste dag tusindvis af danske virksomheder med deres fakturaopfølgning og inkasso. Vi har en lang række værktøjer og produkter – lige fra kreditopslag, inkasso, rykkerservice, fakturaservice og meget mere.
📞 Book a free review of your current debt collection solution and find out how we can help you. Contact us today!
