Nasty Debtors

Do you have a nasty debtor on your hands? What is a nasty debtor? A nasty debtor is hostile and aggressive and poses a difficult obstacle to collection. So why are certain debtor's nasty? Studies show a few reasons which are both common sense and notable. Which type of nasty debtor are you dealing with? How should you tailor your approach to ensure the highest possibility of collection? Read more and help your firm stay profitable.

The first kind to fall into this category is the criminally minded debtor. This is the type of debtor that means to take money from you and whose plan from the beginning was not to pay. This debtor employs a tactic we refer to as "the best defense is a good offense". They know how to play the game and the game often times involves extreme aggression. Criminally minded debtor's need you to prove to them ,not just tell them, that you mean business. They are some of the toughest debtors to collect from, but by following these tips you can substantially increase your odds of collecting the debt.

The next type of debtor in this category is the one that used to be amenable to conversation. Unfortunately, with so many collection calls and no ability to pay, they have lost sight in terms of how to handle you; so they just act aggressively because it appears to be the path of least resistance. I call this the overloaded debtor. With the right dialogue, some patience you can set this man or woman at ease and create the illusion if not the actual reality that you are assisting them through their difficult problem. Remember that patience is a virtue with this kind of debtor. This will payoff big if you are able to maintain your patience throughout the entire collection process.

The next debtor is what we like to refer to as the mis-manager. This person is all over the place. They don't know whether they're coming or going. They only know that your call is the reason why they are hostile, never mind the entire office falling apart at the seams. Simply by calling and saying good morning you will bear the wrath of this individual's blatant inability to run their business and their personal life which is often times one giant mess. Patience, timing, and most of all perseverance will be your friend with the mis-manager. Do not get sucked into the whirlwind that this debtor lives in, or you may lose this collection.

These are just a few of the examples of hostile and aggressive debtors, certainly there are more. The point I would like to make can be highlighted in two simple words: identification and approach. Even if you have to guess as to which one you're debtor may fall into, it is better to have a plan of action rather than just employing the same with everyone. After a while you'll become very good at slotting debtors as they present themselves.