What is debt surveillance of the debts?
Debt surveillance is one of the phases in the collection process, which can be proceeded to, when the customer’s ability to pay is weak and/or the claim should not be taken to the legal collection. Debt surveillance can also be continued if the customer has been found to be insolvent in enforcement, but the creditor still wants to collect the debt.
Various measures, based on the analysis of the development in the customer’s ability to pay, are applied to the open receivables during one year in the debt surveillance. The debt collection agency ensures the collectability of receivables and ensures that the receivable does not expire.
Why is the receivable transferred to debt surveillance?
Transferring the receivable to debt surveillance is beneficial for the creditor, as it ensures that the claim does not expire, and collection can be actively continued when the customer’s ability to pay improves. Debt collection can be a long process and may take several years. The costs of debt surveillance are often tied to the capital of the receivables, so the creditor does not have to pay for the debt surveillance, unless the receivables can be collected.
Debt surveillance is a suitable option when the customer’s ability to pay is weak. Debt surveillance can also be a suitable option if the customer has been found to be insolvent in enforcement, but the creditor still wants to collect the debt.
The phases of debt surveillance
Debt surveillance process can be roughly divided into two phases: the maintenance phase and the active phase.
During the maintenance phase, we monitor the development of the customer’s ability to pay. Late payment interest is also accrued during the maintenance phase. In the active phase, we can offer the customer a payment plan or negotiate with the customer, and thus take care of improving the ability to pay.
The benefits of debt surveillance
- The receivables remain fresh and will not expire. Due to the efficiency of debt surveillance, receivables remain collectable.
- The customer contacts are handled through the debt collection agency. The communication with the customer during debt surveillance is handled reliably by the debt collection agency, so the creditor does not have to worry about the often-long-lasting debt surveillance and related communication themselves.
- In debt surveillance, the life cycle of the receivable and accrued late interest are monitored up-to-date, thus, the receivable is not forgotten.
How to avoid receivables ending up in debt surveillance?
Know your customer. Receivables ending up in debt surveillance can be avoided by assessing the customer’s realistic ability to pay and method of payment before granting credit, by utilizing the information services. This helps to make better decisions, to minimize credit losses and prevent receivables ending up in debt surveillance.
Let Kredinor help in all phases of debt collection
We are your partner in all matters related to open receivables, up to legal actions if necessary. We handle the debt collection efficiently, reliably and in such a way that the customer relationship can still continue in the future – no matter whether your client is a consumer or business.
We offer at your service a modern and customer-friendly service that also includes active telephone collection. You can easily follow all actions taken and the status of assignments in real time. The reports you need, you will have easily and quickly.
Transparent operation, automated processes and modern systems make us a reliable and efficient partner that can produce a high-quality service even for large billing volumes.
We can flexibly agree on which part of the collection process you want to outsource. If necessary, we can also help with disputes, bankruptcy supervision and other special collection procedures. You can also use our international debt collection service in case the open receivables arise abroad.