Credit monitoring

Credit monitoring is basically about monitoring customers' creditworthiness on an ongoing basis, rather than, for example, only assessing credit once when a customer relationship is established.

Customer monitoring has become widespread and popular in recent years, especially among companies that have ongoing engagements with their customers and therefore continuously extend credit, loans or otherwise make credit available to their customers and business partners.

This prevalence is also due to the fact that it has become easier, faster and cheaper to monitor both businesses and individuals - especially due to increased competition from a number of online services in the credit monitoring market.

What is the purpose of credit monitoring?

All credit and debt carries a risk for the provider. There is always a risk that the debtor/borrower will not pay back all or part of the credit/debt. The reasons can vary - from changes in the debtor's financial situation to bankruptcy or death.

Although a creditor can never be 100% loss-proof, much can be done to minimize potential losses. Such risk minimization is done through credit ratings, for example, and ongoing credit monitoring can further reduce the risk of loss.

How is credit monitoring done?

There are many ways to monitor customer credit. Companies can do it manually, but this is often very time-consuming and inefficient. Alternatively, businesses can use a service that automatically performs ongoing credit monitoring of customers.

There are a number of great online services where you can easily and quickly track your customers' financial situation and be notified when your customers move or are registered in a debt register, for example.

One of these services is Collectia's own solution, Qatchr. Qatchr is an online platform where companies can easily perform credit checks and credit monitoring of their customers.

What does credit monitoring include?

Credit monitoring basically contains the same elements as a credit check and can include everything from data validation and credit searches in a debt register to a full analysis of the customer, including key figures, accounting information, registered assets, etc.

However, most credit monitoring typically involves a simple lookup in a debt register where the company is notified if a company or individual is registered as a bad payer.

We recommend that your company uses credit monitoring to also update customer information and generalia to keep your internal ERPand CRM systems up to date. For example, you can ensure that goods are not sent to the wrong address if the customer has moved. Credit monitoring can also enrich your other systems and help improve internal processes.

Get credit monitoring with Qatchr

At Collectia, we have developed our own credit check and credit monitoring tool called Qatchr.

Qatchr can perform credit checks and credit monitoring for both individuals and businesses, giving you insight into your customers' financial situation, including whether they are registered in a debt register, validation of their generalia and relevant key figures for businesses.

In addition, Qatchr can also help you with recommendations for credit times and credit sizes.