Most Common Debtor Excuses and How to Handle Them

Most Common Debtor Excuses and How to Handle Them

It’s an unfortunate reality of business that invoices will sometimes go unpaid and you will be left holding debts. Dealing with your debtors can be a challenge, and there are a few common excuses you are likely to hear again and again. There is a balance to be struck between giving your customers the benefit of the doubt and your own need to receive payment. Below we’re going to cover the debtor excuses we hear most often, as well as how your business can handle them tactfully.

1. I Cannot Pay

Sometimes customers simply can’t pay their invoices. Perhaps they are having a slow month, or maybe their own customers are yet to pay outstanding invoices. How you handle this situation depends on the size of the invoice and the customer. You may want to arrange a payment plan that gives the customer breathing room and maintains the relationship you’ve built, but there’s no obligation to do so.

2. I Never Received the Bill

Before contacting a debtor you need to check whether the invoice has been paid. It’s always possible that payment has yet to be processed by your bank or business. Clarify the details with the debtor, ask for the date and amount of payment, as well as any reference numbers attached to the invoice. Check with your bank or with your administration team to find out whether the payment is pending. If not, get back in touch with the customer and make definite arrangements for payment and confirm the details in writing.

3. I am Not the Person Who Can Pay

That’s not an issue - simply ask to speak to the person who can discuss the payment. If they are unavailable or out for the day, then ask for their direct contact number. Don’t agree to wait for a callback. Be proactive about talking to them as soon as possible.

4. Demands for Paperwork

Customers often demand to see the paperwork surrounding their debt as a stalling tactic. Be sure to provide all relevant documentation with your original invoice, and ensure you have proof that the documentation was received at the time. When calling about an outstanding invoice you may want to have these documents on hand to send through immediately.

5. I Promise I will Pay Soon

Promises to pay soon are a common tactic among repeat debtors. If a customer puts you off to a later date, ask them to put that commitment in an email and then ensure they stick to the new payment date. Where possible, provide reminders via phone or email before the new due date to remind them of the promise and inform them of your debt collection policy.

6. I Will Call You Back Soon

Getting in touch with your debtors is often the hardest part of unpaid invoices. Promises to call you tomorrow or get in touch when they have time to speak are frequent, but customers who can’t follow through on those commitments are unlikely to ever pay. After showing that they are unwilling to communicate or negotiate other payment options, customers should be passed onto debt collection.

7. I Was Not Satisfied With the Product/Service

Customers will usually let you know right away when there is a problem with your products. Waiting to bring up their complaint until you are following up an invoice isn’t normal. Regardless, it’s your responsibility to investigate their complaint. Discuss the exact problem and resolve the issue as quickly as possible. If your customer can’t offer proof of the problem, like damaged goods or incomplete work, proceed with invoicing and debt collection.

8. The Invoice is Wrong

It’s unusual for a customer to wait to inform you that an invoice was incorrect. Find out their exact problem and compare it to your own copy of the invoice to find out whether a mistake has been made. Make any necessary changes and return the adjusted invoice to the customer as soon as you can. If the invoice was correct then let the customer know that you still expect the invoice to be paid.

Need Help Dealing With Debtors? Contact Dynamic Commercial Collections Today.

Even customers you have good relationships with can default on their debts. Being left to handle outstanding invoices without a dedicated Commercial Debt Collection team can be both stressful and time-consuming. The professional Skip Tracing Debt Collection team at Dynamic Commercial Collections can help your business recover the money it’s owed and save you the trouble of following up on invoices personally. For more information about our Field Services or collections process, you can contact us at any time.

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