How to choose your debt collection partner in 2023

What should you focus on when choosing your new debt collection partner(debt collection company or debt collection lawyer)? This is an important question that we try to answer every year at Collectia.

Of course, many things are commonplace and often repeat from year to year. However, in 2023, we believe that there is one specific thing you should demand that your debt collection partner can deliver to your business - besides debt collection.

Before you read on, let us proclaim - yes, we are a debt collection agency, but we try to keep the article as objective as possible. The article therefore includes both debt collection agencies and debt collection lawyers as possible choices.

The article is of course influenced by the fact that here we are at the start of 2023, experiencing an economy that looks more bleak than it did in 2022; rising interest rates, high inflation, rising unemployment, more bad payers and more bankruptcies.

1. Debt collection in interaction with credit assessment

2023 promises to be a tough year for many families and businesses. Because 2023 will be a year in which the national economy will not be booming at the same speed as in the previous few years.

All other things being equal, this will also mean that more individuals and companies will have difficulty paying their bills, which can end in bankruptcies. At Collectia, we are convinced that you therefore need a greater focus on the financial situation of your future and current customers.

One solution to this could be the acquisition of a credit rating system that allows you to reject potential bad payers and bankruptcy riders. At the same time, you should tighten your credit policy towards your existing customers, if necessary.

2. Easy online access to your files

It's more important than ever to have a complete insight and overview of your cases as well as itemized case histories. This is often best solved with online access to your debt collection cases - where you can create, follow and close your cases. Because in tough times, it's extra important that you know that your cases are progressing - and that they are being processed as promised.

If your debt collection company or lawyer is not able to offer this service, you should make reporting requirements for your cases. However, this is not an optimal solution as you will not have fresh and updated data at hand.

3. The price of debt collection

The price of debt collection services often ranges from zero to a few thousand kroner. Therefore, it can be difficult and confusing for most people to get an insight into what you really get for your money. Often, the cheaper a case is - the more of the imposed costs go to the debt collection company / debt collection lawyer.

You should carefully consider what the best solution for you is: no cure no pay, an annual subscription or a solution where you pay for creation per case. There are no right or wrong solutions when it comes to price. Price and quality are often linked. This also applies to debt collection services.

4. The recurring question: debt collection lawyer or debt collection agency

This is one of the questions we probably get asked most often. Should you choose the debt collection company or should you go with a debt collection lawyer instead?

Let's be honest: there are pros and cons to both constellations. The choice of debt collection provider may be right for you, but wrong for your neighbor.

We have previously produced a guide on this topic:

The ups and downs of the debt collection industry in 2022: the choice between a debt collection agency or a debt collection lawyer

5. References trump reputation... (also) in the debt collection industry

Most businesses and individuals turn to Google to find out whether a company is trustworthy to work with. There are also many different services and options to get background information on a company.

However, this can be a difficult discipline in the debt collection industry; and indeed, very few debt collection agencies and lawyers have particularly good reviews when a simple Google search is performed. This is (often) because these reviews consist of reviews from debtors who owe money. In other words, it is not the customer (creditor) who leaves reviews on Google. But of course, it is perfectly fair for them to express their opinion. The focus of all debt collection companies should be on the treatment of debtors, which should be both fair and respectful. Fair and respectful debt collection also increases the chances of getting the customer's money back.

We think you should check whether your prospective lawyer or debt collection company has references and client testimonials that you can read. These can provide valuable insight into what it is like to be a client and what value you can expect to get out of the collaboration.

Bring your debt collection and credit rating together with Collectia

At Collectia, we have been working with debt management, debt collection and credit sc oring (of private individuals and companies) for more than 150 years.

Every day, we help small and large companies as well as large groups with their reminder letters, debt collection services, credit assessment, KYC, monitoring and much more. Of course, we would also like to help you - whether you have 1 or 10,000 cases annually. Because at Collectia you get more than 150 years of experience and perhaps Denmark's smartest, easiest and fastest online tool to get started with everything from debt collection to credit ratings of your customers.