How debt collection can improve customer relationships
When debt collection becomes negative for the customer relationship
Debt collection is both a loaded word and a demanding experience for many. Traditional debt collection is known for high fees, strict processes and long wait times. This often leaves both the end customer and the business with a bad outcome:
The customer feels punished when small amounts grow large due to interest and fees.
The dialogue is broken because the debt collection company takes over the contact and creates distance between the customer and the business.
Reputation is damaged when the customer experiences the process as unfair or unnecessarily burdensome.
The result is that even customers with temporary payment challenges can lose trust and, in the worst case, choose not to do business with you in the future.
Experiences from customers and consequences for businesses
The debt collection process is often experienced as more than just finances; for many it is also about stress, uncertainty and a sense of lack of control. Research and public reports support this picture.
A SIFO survey published by the Norwegian Consumer Council in 2023 showed that around 14% of Norwegian households had payment difficulties, and that 1 in 10 had to contact creditors to request a deferral or payment plan. Yet only 36% of these were offered a solution that actually helped them move forward. For many customers, this means that the experience of rigidity and lack of flexibility exacerbates the financial and psychological strain they are already under.
At the same time, the Norwegian Financial Supervisory Authority's debt collection statistics for 2024 show that the total amount of receivables sent for collection was NOK 129.5 billion. This illustrates how extensive payment challenges are in Norway, and how many people and businesses are affected by collection processes each year.
The consequences for companies are clear:
When the customer does not experience understanding or flexibility, the willingness to pay may weaken and the burden on the customer may increase unnecessarily.
When the process appears unfair or unclear, the business risks losing something far more important than the receivable, namely the customer relationship.
In short: Debt collection is not just about collecting money. It is also about how the business is perceived as professional, fair, and accommodating.
Why debt collection is a good option
Self-service collection gives businesses the opportunity to maintain control, dialogue and customer relationships, without compromising on payments.
The relationship is maintained: The customer deals with your business, not a third-party debt collection company.
The cost picture becomes fairer: The debtor faces lower fees, while the business retains its fee income.
The principal is prioritized: Automated processes ensure faster payment, with less frustration for the customer.
Communication is clear and professional: Digital reminders, flexible payment schemes and simpler language give the customer the experience of being treated with respect.
The result is that the business gets paid faster, while the customer feels taken care of, and is thus more inclined to continue the collaboration.
In summary
Aggressive debt collection can be detrimental to customer relationships. Experience from Norwegian consumer surveys shows that a lack of flexibility and clear communication is often perceived as an extra burden for the customer.
With debt collection, however, businesses have an opportunity to turn the situation around: From being a threat to the relationship, to becoming a process that both ensures payment and builds trust.
Curious about how debt collection can work for your business?