A Collector’s Guide:
8 Types of Delinquent Customers and How to Collect from Them Positively

These customers like to joke around and keep things casual. They hardly focus on the money. You have to indulge them with chit-chat but also keep the conversation focused on their debt.

Important to note: it’s very easy to get carried away and trust hipster personalities. So it’s important that you remain focused on the agenda of the conversation and hold them to their promise.

It is hard to convince cynics of something they don’t agree with. They usually don’t pay on time but also won’t explain why. With these customers, it’s effective to find some common ground. This helps to move the conversation forward and makes it easier to start
discussing their debt.

These customers usually know more about their accounts than the collectors.
You should allow them to be in control whenever possible. Because allowing them to guide you to a solution is more effective than trying to push back.

If you can speak to them with certainty, that will go a long way towards building their trust.

The problems with these customers can be boiled down to some hard times. Understanding their circumstances, coming up with a solution beneficial to both parties and making them
understand how paying their debt on time will only make things easier in the long run should be the strategy there.

A simple act of empathy can help collectors make a connection with these customers.

Sentimental customers avoid any ownership of the debt and often play the blame game. For them, ensure you are geared up with all the information to prevent them from turning on you.
Validate their feelings, make them feel good but also guide them towards the
solution and hold them to their promise.

Often these customers are unaware and disorganized. They may be qualified, but have little experience or knowledge of their payables. With amateurs, it is helpful to show them the reason for their debt and make them understand that their debt is not trivial and how paying
right away can help them.

It is very crucial to identify your delinquent customers right away, but challenging at the same time. Their number of open accounts, total outstanding amount, poor credit score
and the reasons for late payment might give you a hint about the customer’s intentions.

Bank and trade references could be other indicators. For such customers it extremely important to take whatever means necessary to get them to pay. However, your actions should not damage your business relations if you still wish to do business with them in the future.