Avoid debt collection - minimize the number of debt collection cases through accurate credit scoring
For most companies, debt collection is an indispensable process to maintain a healthy cash flow. But it is also a situation that most of our clients and their customers would like 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 now. In the credit relationship, it affects both the creditor's and the debtor's liquidity / finances.
Although debt collection solves most debt issues where the customer has an outstanding invoice - it 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 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 the option of data washing and advanced digital account creation with built-in KYC and credit rating, which, for example, makes it possible to "datawash" your customers before they are created in your own system - thus ensuring that the data that the customer has provided to 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, recommended credit maximum and credit days), payment remarks in the debt register, bankruptcy analysis, negative observations, etc. In other words, a credit rating 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, among other things, a check of debt registers, CPR validation, insight into housing conditions, recent change of address, information on vehicle liens, etc.
But avoiding debt collection altogether, no professional credit rating can guarantee you, not even Qatchr - but you will undoubtedly minimize them greatly.
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.
