Collecting that Debt



The efficiency of debt collection is the difference between a business that will succeed and a business that closes up.

 If you do not have control of your debt collection then you will eventually fail. All businesses that grant credit will be faced with the problem of bad debt at some stage. The best way to deal with bad debt is to have a good debt control system in place.

There are three types of bad debt:

  1. Can pay. This is where your debtor can pay but will drag out non-payment as long as possible. They do intend to pay but only at the last moment.

  2. Can’t pay. This type of debtor have no means of paying the debt either momentarily or ever. They are not necessarily avoiding payment but do not have the means to do so.

  3. Won’t pay. This type of debtor is the worst. They will try to get away with not paying, know the debt collection routine and will not pay until the matter goes either to court or through a debt collection agency.


The solution to this is to get your money when it falls due or have a collection ...

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