Debt Collection Tips: Six Excuses from Debtors And How to Handle Them
Hi. My name is Adam, Debt Collection Expert and owner of Debt Recoveries Australia.
I don’t know one of my clients that actually likes doing debt collection, which is why they outsource to us I guess. However, internal credit controls can be put in place and some prevention strategies put in place early on could save you big dollars in the long run.
Once you find yourself in a situation where you are working with a debtor who has fallen behind on their payments, you are almost certain to hear at least one of the following excuses as to why they weren’t able to make their payments. One of the best things you can do in these situations is to have a response prepared for all of the most common excuses.
So here are the most common excuses we hear, along with some answers you can use:
1. I don’t have enough funds at the moment
One of the most common ways delinquent debtors will try to buy themselves some additional time is to simply say they do not have the funds to repay at the moment.
Answer: Ask them to fill in a financial statement. Have one ready and available online to send to them. Use our template if you like. If what they are saying is true, then they will not hesitate to fill in a financial statement. Then you can work with them to find out what they can afford to pay. If they refuse, advise them of the alternative, which is a court judgment, then a summon to appear before the court in order to reveal their assets and liabilities. Do they want to do it the easy way or the hard way?