It is extremely valuable for your business to identify the type of debtor you are working with. Once the customer’s reasons for not paying are identified, the debt can be resolved and you can get paid. Hiring a collection agency is the best way to quickly and efficiently get your money.
Here Are 4 Common Types of Debtors:
1. Willing and Able:
This is obviously the ideal situation. They have the resources to pay their unpaid debts and are willing to pay. This type of debtor usually finds themselves in debt because of some type of error, like lost paperwork. ARS will help get this customer to pay their debt quickly so that it does not hinder your business or their life.
2. Unwilling but Able:
This customer has the resources to pay their debt but for some reason refuses. This may happen if they have a dispute with the balance owed or are unhappy with the product or services. In this case, the Accounts Retrievable team will help negotiate and resolve disputes, leading to payment.
3. Willing but Unable:
This person wants to pay you, but for financial reasons cannot. They acknowledge their debt and even may have made some attempt to pay. For financial reasons, this willing debtor cannot pay the full amount of the debt. In this case, Accounts Retrievable will work out a payment plan, which is most helpful for you and the customer.
4. Unwilling and Unable:
This is obviously the most difficult customer to work with. They refuse to pay and they cannot afford to pay either. In this difficult case, ARS will attempt to resolve the dispute and work out a payment plan.