4 Kinds of Debtors Explained

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Here at Summit A*R, no two accounts are exactly alike. Each client is unique, and we tailor our services to fit your needs perfectly. That said, it’s natural for there to be some overlap between cases, especially when you’ve been around as long as we have.

We started the Summit A*R collection services 24 years ago. Our history affords us exclusive insights into a variety of debt over a broad number of industries, and we can detect patterns in the types of debtors you might face. Here are four common categories of people who don’t pay their bills.

1. People Who Have Made a Mistake

Although debt may feel personal, not every overdue account is an intentional slight against your business. Sometimes, mistakes happen. For something as simple as paying a bill on time, a lot can go wrong.

  • Technical glitches can delay vendors’ payments
  • Miscommunication about due dates can trip up their accounts department
  • Your customer may accidentally forget about their invoice or misplace it entirely
  • They may not have even received the bill in the first place
  • You may have sent the invoice to the wrong person with the same name, and you’re attempting to get paid by someone who isn’t a customer

Luckily, these sorts of mistakes are easy to fix. Customers or vendors with this kind of debt usually want to repay what they owe. All your A/R department has to do is sort out the issue and politely remind them about their bill.

2. People Who Honestly Can’t Pay

Despite the country gradually reopening its doors for business, the effects of the coronavirus pandemic are lingering. More than forty million people lost their jobs due to the pandemic, bringing the country’s unemployment rate to levels we haven’t seen since the Great Depression in the 1930s.

Early reports show there has been some job growth, but economists forecast the country’s recovery will be a long one pockmarked by setbacks

If your customer grapples with significant financial hardship, they may not have the cash at hand to pay your bill — no matter how much they would like to cross out that debt.

In situations like these, our “P.H.D Philosophy” allows our team of debt specialists to shine. Short for “Preserve Human Dignity,” this philosophy ensures we approach each account with the compassion and respect it deserves.

We understand how hard it can be for businesses and individuals in these unprecedented times, so we don’t chastise, guilt, or ridicule your debtor. We also never threaten people or use aggressive tactics to convince them to pay.

That’s not the P.H.D. way, nor is it an effective means of debt recovery. Rude and underhanded campaigns don’t yield results; they only make enemies out of your customers.

Our kind and professional team will help you collect on bad debt without alienating the customers you’ve worked so hard to attain. They’ll remember this compassionate approach when they’re back on their feet.

Click here to learn more about us and our commitment to friendly debt collections.

3. People Who Dispute the Debt

This next debt collection scenario can be especially frustrating for businesses just trying to get paid. You’ve served them a legitimate bill for services or goods you’ve already rendered, yet your customer refuses to make good on their payment.

As an experienced consumer collections collection agency with 24 years in the business, we’re familiar with these kinds of debt dodgers. Sometimes, they withhold payment over alleged quality issues; they believe you didn’t do a good enough job to deserve the full check.

But other times, it’s merely a misguided attempt at being a savvy businessperson. Always on the lookout for a deal, these customers attempt to avoid paying the full bill as a way to bolster their account books and outwit others.

In these challenging situations, it’s best to request consumer debt collection assistance right away. Our specialists know how to massage a payment out of even the most stubborn customers or vendors.

If our P.H.D. approach isn’t enough to convince them to cough up the money, we can tap into a variety of resources to change their mind. Our ability to report delinquent payments to the three national credit bureaus is especially persuasive. Most customers will want to clear their bad debt when their credit score hangs in the balance.

This feature is something only a national debt collection agency can offer. While your in-house collections team doesn’t have this sway over credit history, we have the authority to report to Equifax, Experian, and TransUnion.

4. People Who Skip Town

This last category of debtors is perhaps the most challenging for business owners to handle on their own. A customer who disconnects their number and moves without leaving a forwarding address may as well be dust in the wind. You simply don’t have the time or resources to track them down.

Tracking down challenging debt is what we do here at Summit A*R. We have a licensed private investigator on the team whose sole job is to oversee our skip tracing department. They work tirelessly to track down customers or vendors who have skipped town.

These seasoned professionals have access to the best locate databases in the country. With these tools in hand, they’re able to locate debtors even if they’ve crossed multiple state lines.

Get in Touch No Matter What Kind of Debtor You’re Dealing With

At the end of the day, you may not have the time, resources, or patience to track down bad debt. But that doesn’t mean you can just walk away from these overdue payments. Cash flow is the lifeblood of your business, and you deserve to get paid for your work.

Allow us to take over your debt collection. Our team of debt specialists is here to help when you’re at your wit’s end. With a recovery rate that’s double that of the national average, we’re confident we can help the cash flow again, no matter what kind of debtor you’re dealing with today.

If you’re ready to collect on overdue bills, get in touch with us today! We’re happy to handle any bad debt.