Avoid the loss before it arises
Credit and risk
Credit assessment, monitoring and payment default registrations. The cheapest collection case is the one you never get, because you saw it coming.
The process
The whole dictionaryApplies all the way through
Credit and risk is not a step in a case. It applies from the invoice to the bailiff’s court.
The concepts
15 conceptsThe concepts in this theme
Each entry is one page: the definition, the rate and the rule behind it.
- Ability to pay (betalingsevne)Ability to pay is the debtor's actual capacity to pay — as distinct from the willingness to pay.Forced out by pressurecannot be
- Beneficial owners (reelle ejere)Beneficial owners are the natural persons who ultimately own or control a company — and the register is often the only place you can see who is really behind it.The natural persons behind the companyare
- Company form and liability (selskabsform og hæftelse)The company form determines who is liable for the debt — and therefore whether there is anyone to pursue at all once the company is empty.No personal liabilityaps and a/s
- Credit assessment (kreditvurdering)A credit assessment is the judgement of whether a customer can and will pay — made before you deliver, not afterwards.Before deliverymade
- Credit insurance (kreditforsikring)Credit insurance covers the loss if a customer does not pay — a policy on the sales ledger, where a known premium takes the place of an unknown write-down.Losses on approved debtorscovers
- Credit limit (kreditgrænse)The credit limit is the maximum amount a customer may owe you at any one time — the ceiling on your exposure.A ceiling on the exposureis
- Credit monitoring (kreditovervågning)Credit monitoring is the ongoing monitoring of your customers' financial position — so that you spot the problems before they turn into losses.Payment defaults, compulsory dissolution, change of ownershipwarns you about
- Credit policy (kreditpolitik)A credit policy is the organisation's written rules for who is granted credit, how much, on what terms — and what happens when the money does not arrive.Limits and escalationsets
- Credit reference agency (kreditoplysningsbureau)A credit reference agency collects and passes on information about ability to pay — under rules that limit both what may be recorded and for how long.Credit reports and monitoringsupplies
- Credit report (kreditrapport)A credit report is the overview of a company's financial position sold by a credit reference agency — accounts, adverse entries, ownership and a score.Accounts, adverse entries and ownershipcontains
- CVR number (CVR-nummer)The CVR number is a company's unique identifier — the thing that settles who the claim is actually directed against.The legal entityidentifies
- Debtor monitoring (overvågning af skyldner)Monitoring is the continuing follow-up on a debtor with no ability to pay — the case is not closed, but reopened once there is something to go after again.10 years with a judgmentthe claim survives
- Default listing (betalingsanmærkning)A default listing is a record that a person or a business has failed to pay a debt — visible to other creditors.RKI and Debitor Registretrecorded in
- RKI (Danish credit register)RKI is a credit reference agency where bad payers are registered — today part of Experian.Credit reference agencyis a
- Serial bankrupt (konkursrytter)A serial bankrupt is a person who repeatedly sets up companies, lets them go bankrupt, and leaves the creditors with the loss.Several bankruptcies behind themhallmark
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Other themes in the dictionary
The 6 steps of the process are above. Here are the other cross-cutting themes.