If you are running a business, then surely you have dealt with the issue of delinquent customers. The customers might not pay for many reasons. While some of the reasons are logical and credible, some of them might sound like a bad excuse. As the creditor company, you need to understand the difference between the real reasons and the excuses and then decide your course of action.

Excuses at the Time of Business Debt Collection

When the debtor is not interested in paying the money, they will come up with some creative excuses that will justify their delay in payment. As a creditor, you will be in a tough spot while you cannot let go of the money or ruin your business association with the debtor company. That is why you need to distinguish the excuses from the real reasons and ensure that you get paid. Hiring a commercial collection agency can be helpful in such situations too.

Take a look at the reasons or the excuses that your debtor might give.

 “I never received an invoice from you.”

When your customer or the debtor says this, it can be true or it can be an excuse too. How can you know that? First, you need to check before reaching out to the client whether the invoice is sent to the customer or not. Also, check if the invoice has all the necessary details regarding the amount, the date of the payment and other information. If you have a copy of the same invoice, then there might be a chance that the customer has misplaced it. Or they want to delay the payment.

“I have some questions about what I owe.”

This is a very common excuse that often debtor gives to the creditor company. That is why agencies like Nelson, Cooper and Ortiz LLC suggest that you should follow up on the late invoice payments. Check the due date of the payment and if the money has not been credited, then you need to reach out to the customer immediately. They might have genuine questions too. In that case, the sooner you reach them, the better.

“I am not happy with what you have provided.”

If you are offering your services or products on credit, then be prepared to hear this from your customer. When you are following up and they say their experience was unsatisfactory, yet they are bound to make the payment to you. Your contract should state that clearly. In terms of good will, you might offer some concession but make sure that you are getting paid for the service or the product you have provided.

“I am not able to pay right now.”

If you hear this from the customers, don’t start panicking or pressurizing them. The reason might be genuine. The customer might have some cash constraint or real problems like a partner’s tiff or someone’s death in the management, loss of resources due to some unprecedented situation or arson. Before you jump to a conclusion, try to find out how genuine the issue is. And then allow some flexibility for business debt collection. You can opt for a settlement so that they can give you the money in installments.

“It is not my responsibility.”

This type of situation can be a bit tricky. When you are in contract with a stakeholder and they leave the partnership, the remaining partner might tell you this. That is why you need to make sure that in the contract, you hold liable not the individual but the company for the debt.

“I have filed for bankruptcy.”

In this case, connect with collection agency services immediately. You should be on the list of the creditors so that you can get paid when the court liquidates the assets of the company.

So, be careful about what your delinquent customer is telling you. Don’t pressurize as they will be within their rights to report you. To recover the money, get help from the professionals.