Debt Recovery Blog: Excuses excuses - Hints and Tips for Chasing Debt

Don't Assume Debtors are Lying

It may be easier said than done but one of the most important things to remember is that if you assume a debtor is lying and they are not, then that can be very damaging for your relationship. Be careful before jumping to conclusions. You should always make informed decisions and be wary of thinking that everyone who owes you money is lying.

Excuses for putting off Paying Debts

There are obviously many excuses people will give you if you are trying to chase a debt. People are always looking to buy themselves a bit of time and breathing space. Lets look at a few of the reasons often given and the possible conclusions;

“The cheque is in the post”

The classic excuse. In fact with the gradual disappearance of cheques, this has become less and less relevant, but regardless of what we think about the postal services, its only a small percentage of mailed items which do not reach the target. Our observation from many years of collection experience, is that the outright lie of “cheque in post” is one that is rarely used by businesses but a more familiar one with individuals

How to tackle this?

If in doubt, make sure you collect the cheque directly. Its worth that little extra effort

“The invoice is awaiting signature” and “the cheque/payment is awaiting the financial director’s signature.”

Both frustrating but should the same conclusions be drawn? No. The first can be driven simply by carelessness, absence or laziness. It might just be given as an excuse by a cunning Accounts Payable for withholding cash, but that is less likely to be the case than with the “awaiting FD approval” excuse

Every payment will require approval of course, but if it drags on then there could be cause for concern.  By far the most likely reason the signature is being withheld at this stage is because of cash. That doesn’t necessarily mean that the client is in trouble and it would be dangerous to overreact. But this has to be considered, especially if the same excuse is being trotted out week after week

How to tackle this?

As ever there is no one size fits all solution, but a good place to start is to ask outright if there is a cash problem. Not aggressively but politely. You will be surprised how open debtors can be

We will address this further in the next post but if you are having any trouble chasing debtors, getting invoices paid or improving cashflow in your business because of debtors putting off payment call Colemans-ctts Solicitors Debt Recovery Team now on 0808 155 9070 or make an online enquiry to find out how we can help you collect your debts and take away the stress of getting your money.