Gathering Business Information about the debtor

Once the assignment is registered, credit information about the debtor is mostly gathered. The economic situation is then clarified and evaluated. This prevents incorrect account management and inappropriate actions and consequently unnecessary costs. In those cases where the bailiff or deputy has previously ascertained that the debtor is insolvent, this should be clarified at the point of registration.

Information about the current creditworthiness of the German debtor

Gathering reliable commercial information about the current financial status and the economical performance of your business partner - at least at this stage of the relationship - is a must before you incur the costs of litigation. Credit checking with credit reference agencies is of utmost importance to avoid proceedings with a questionable result due to the possibility that the debtor might be subject to bankruptcy or winding up proceedings. Why waste money suing a debtor who is already insolvent?

Credit Ratings: Commercial and Credit Check of the Debtors

Successful debt collecting is mainly based on an extensive research of debtors before contacting them. To better judge the credit-standing of the debtor we can supply you with credit ratings for companies worldwide.

Credit agencies provide financial information on debtors. With this information the financial standing - and thus the credit-worthiness - of the respective companies can be assessed. Each credit report contains a rating which places the company into a risk category.

Credit reports contain data difficult to get from other sources. They list – where available:

• date of formation
• line of business
• names of shareholders/partners
• amount of their respective shareholding/participation
• names of managers
• number of staff
• bankers
• assets and liabilities
• real estate
• total of annual sales
• manner of meeting obligations
• a comment on creditworthiness
• rating (scale 1 to 6)

Our law office can also check the Land Registry records to see whether land is owned by the debtor. Experience indicates that a debtor who owns his own house is more likely to pay than a tenant. Gathering valuable information about the financial and asset status of the debtor is therefore an essential part of the process of defining the common strategy of debt collection before taking the decision to sue.