Red Flags - Signs that Customers are Becoming Debtors

Early warning signs can indicate financial distress or the customer's intention not to pay. Once invoice terms are broken, follow-up should be made to uncover an ability to pay. If the customer avoids contact, disputes the product or service upon demand for payment, sends a partial payment or breaks a promise, it is time to consider escalating collection activity.

If a final demand for payment has been ignored, the debtor ignores three or more phone calls, or the debtor breaks a second promise, it is time to enlist credit collection services from an agency to intervene in the collection process.

If your customers are turning to debtors, react immediately to recover your money and prevent loss. The longer accounts age, the less likely they are to collect. The next section discusses collection processes and the importance of quick and decisive action.

For business-to-business collection help, contact us.

We have successfully used Aguirre, Aikman + Brown for several years. I am very impressed with their promptness, and I especially like the convenience in how we submit new placements via e-mail.

Angie Shaffer
Credit and Collections Manager, Waste Systems International

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