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.
11 concepts
- 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 pressure cannot be
- 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 liability aps 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 delivery made
- 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 exposure is
- 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 ownership warns 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 escalation sets
- 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 entity identifies
- 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 judgment the 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 Registret recorded in
- RKI (Danish credit register) RKI is a credit reference agency where bad payers are registered — today part of Experian. Credit reference agency is 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 them hallmark
From dictionary to decision
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