Protect yourself from rising bad payers and bankruptcies
The number of bad payers has skyrocketed and the number of companies going bankrupt has not been higher in 13 years. Here at Qatchr, we believe that these are things you should be aware of - and that you can actively try to protect yourself against.
Read the article here to find out what you can do to avoid bad payers at a time when Danish businesses and consumers are under pressure
Highest number of business bankruptcies in 13 years
In 2023, 3,037 companies went bankrupt, the highest number in 13 years. There are of course many reasons for this, but the extra high number is likely due to a combination of factors.
"The reason for the many bankruptcies is both a result of some tough years under Corona, including forced shutdowns, but also the following years, which have been characterized by high interest costs, rising commodity prices and high inflation. All these conditions have created a slowdown in Danish consumption and economy, which companies can feel, especially those who have struggled with a backlog from Corona," says Morten Holst Henriksen, who helps companies with business development, digitalization and marketing.
Bankruptcy often has major consequences, not only for the company itself in terms of job losses, but also for its customers, suppliers and business partners, who often lose money.
173,093 registered bad payers last year
In 2023, 173,093 Danes were registered with Experian - formerly known as RKI(Ribers Kredit Information), the highest number of registrations in three years.
There are several reasons for the rising number of registered bad payers, but one of the reasons is undoubtedly the general slowdown that Danish families have experienced during the last two years of high inflation.
Danish families' wallets have been under pressure, which has been felt when shopping in supermarkets and taking out loans.
Unfortunately, tight budgets often lead to certain bills not being paid - either because there was no money to pay them or because you had to prioritize among your creditors.
Avoid bad payers with Qatchr
2023 has been a truly challenging year for consumers and businesses alike - and it doesn't look like the trend will slow down in 2024.
Derfor er det måske netop nu, hvor du som virksomhedsejer, bogholder eller økonomiansvarlig er nødt til at fokusere skarpt på jeres debitorer, herunder:
✅ Kredittider
✅ Kreditforhold
✅ Kreditpolitikker
✅ Nedbringelse af udestående
✅ Rykker- og inkassoprocesser
✅ Kreditopslag
All of these relationships come under pressure as society experiences rising bankruptcies and an increase in bad debtors.
Of course, we recommend that you keep an eye on these points on an ongoing basis - but especially in the times we find ourselves in now.
Det kan også være, at det er på tide at introducere noget nyt; kreditopslag, kreditopslag og få en større indsigt i dine kunders økonomiske forhold.
Qatchr is a digital online service that allows you to get all relevant information about your customers - whether they are businesses or individuals.
With Qatchr you can download financial statements, financial ratios, view credit information, get financial recommendations and much more.
By using Qatchr, you won't avoid bad payers, but you can make more informed decisions and maybe even avoid the companies on the verge of bankruptcy - and avoid customers who are already registered as bad payers.
Is your customer a business with an ApS, A/S or similar legal form and is the company more than 1.5 years old? Then it will typically be possible to view the company's public accounts.
Public financial statements can be easily accessed online and can help provide insight into a customer's financial situation.
Remember that public accounts are a look back in time, so they don't always give a true picture of the company's current financial situation.
Many bad payers often choose two paths when it comes to paying your invoice; no response or a sea of explanations.
There are almost no limits to the excuses a bad payer will use to delay or avoid payment.
In other words, if a customer has excuses or doesn't respond after you've sent the invoice, you should pay attention.
