Problem with database collation change (SQL Server 2008)

Ahh, this is one of the worst problems in SQL Server: you cannot change the collation once an object is created (this is true both for tables and databases...).

You can only save your data (don't use bcp or backup utilities, you need to place them in a csv of similar file types...), drop the database, recreate with the right collation and re-import the data into the new database...

Hope this helps.

I have got the same issue and all objects were functions First takes full backup

script function as create. Delete these function then Run

use master
go
ALTER DATABASE xxx SET SINGLE_USER WITH ROLLBACK IMMEDIATE 
go
ALTER DATABASE xxx COLLATE yyyy
go
ALTER DATABASE xxx SET MULTI_USER
go

Recreate functions

I hope this helpful.