The different types of payers and their responses

Let’s be clear: there are as many types of

payers

as there are

debts

and as many reasons for not paying as there are

unpaid bills

. This makes it complicated to classify

payers

objectively into different, well-defined categories and to list all the

reasons

leading to

late payments

non-payment

. But with the benefit of our experience,

TCM

can give you an overview of the issue.

The major types of payers

There are two categories of debt

payers

: those who

can’t pay

(about 15%) and those who

won’t pay

(about 85%).

For those who can’t pay, it’s either a temporary issue (a passing event or financial difficulty) or a longer-term one (a serious financial difficulty). Through a few sources, but mostly by listening, we try to verify what’s really going on with these businesses or individuals. For B2B (business-to-business) debts, there are “cascade”-type problems (“we’re waiting on several payments ourselves from our customers before we can pay you”). The general economic situation and overall professionalism have a notable impact here.
For those who won’t pay, there are disputes, a payer who can’t be found, or one who’s forgotten to pay, etc. For these cases, listening is also essential in order to find solutions. Disputes may sometimes be justified, but even so and especially when they are not, understanding the case helps us to be more effective.

The most commonly stated reasons

So what are the reasons for not paying? This is a useful question to ask in order to avoid

unpaid bills

. The most commonly stated

reasons

for not paying are as follows:

“I never ordered these goods/services; I was just asking for information.” [In this case, proof of the order itself or other evidence like delivery bills (an unquestioned delivery equals a debt recognition) is essential]
“I never signed a contract.” [This is a frequent reason businesses put forward for not paying. However, a written document is not always necessary for a contractual relationship. Good administration by the creditor is essential.]
“I never got the invoice.” [The post can be unreliable. More and more businesses are using e-mail. The Law of 2 August 2002 combating late payment in commercial transactions stipulates that in the absence of an invoice, the date of delivery of the goods or services shall be deemed to be due date. The delivery of goods is the optimal way to inform the customer about the existence of the debt.]
“I forgot.” [Good follow-up by the creditor and then by TCM helps them remember!]
“I don’t have the resources to pay.” [Good listening can help limit this problem and lead to a common solution.]
“Somebody close to me has just died.”
“I’m on holiday.”
“I’ve lost my credit card.”
“I’ve sent the invoice to my accountant.”
Etc.

When faced with

non-payment

late payment

, other entities, such as schools, find themselves in a unique situation. In such cases, for example, the reasons for non-payment relied on by parents are very specific:

“School is (or should be) free.” [The cost of teaching is supported by the community, but school supplies, outings, meals, etc. aren’t!]
“It’s my ex (husband, wife, partner, etc.) who should pay.” [In some cases, a court ruling confirms this statement. This judgment applies only to the relationship of the parents to each other, and not to creditors who are unconnected with the judgment and who can therefore count on the joint and several liability of the two parents or of one of the parents which may be more solvent than the other one.]
“My child is having problems at school (bullying, stolen mobile, etc.), and so I’m not paying.” [There is no link between this type of problem, whether actual or alleged, and invoicing for school services.]
Many other reasons are given, some of them absurd (“My child goes to sleep too late, because the boarding school’s not paying attention to his homework…!”).

In conclusion, remember that

payers

who can’t or won’t pay will always come up with a good reason for not paying their

debts

. That’s why your internal debt administration needs to take these challenges into account and properly manage orders, deliveries, disputes, etc. with a view to reducing

unpaid bills

. And it works! You wish more details on what we can do for you? Please don’t hesitate to contact TCM. Surf our

website

Let’s be clear: there are as many types of

payers

as there are

debts

and as many reasons for not paying as there are

unpaid bills

. This makes it complicated to classify

payers

objectively into different, well-defined categories and to list all the

reasons

leading to

late payments

non-payment

. But with the benefit of our experience,

TCM

can give you an overview of the issue.

The major types of payers

There are two categories of debt

payers

: those who

can’t pay

(about 15%) and those who

won’t pay

(about 85%).

For those who can’t pay, it’s either a temporary issue (a passing event or financial difficulty) or a longer-term one (a serious financial difficulty). Through a few sources, but mostly by listening, we try to verify what’s really going on with these businesses or individuals. For B2B (business-to-business) debts, there are “cascade”-type problems (“we’re waiting on several payments ourselves from our customers before we can pay you”). The general economic situation and overall professionalism have a notable impact here.
For those who won’t pay, there are disputes, a payer who can’t be found, or one who’s forgotten to pay, etc. For these cases, listening is also essential in order to find solutions. Disputes may sometimes be justified, but even so and especially when they are not, understanding the case helps us to be more effective.

The most commonly stated reasons

So what are the reasons for not paying? This is a useful question to ask in order to avoid

unpaid bills

. The most commonly stated

reasons

for not paying are as follows:

“I never ordered these goods/services; I was just asking for information.” [In this case, proof of the order itself or other evidence like delivery bills (an unquestioned delivery equals a debt recognition) is essential]
“I never signed a contract.” [This is a frequent reason businesses put forward for not paying. However, a written document is not always necessary for a contractual relationship. Good administration by the creditor is essential.]
“I never got the invoice.” [The post can be unreliable. More and more businesses are using e-mail. The Law of 2 August 2002 combating late payment in commercial transactions stipulates that in the absence of an invoice, the date of delivery of the goods or services shall be deemed to be due date. The delivery of goods is the optimal way to inform the customer about the existence of the debt.]
“I forgot.” [Good follow-up by the creditor and then by TCM helps them remember!]
“I don’t have the resources to pay.” [Good listening can help limit this problem and lead to a common solution.]
“Somebody close to me has just died.”
“I’m on holiday.”
“I’ve lost my credit card.”
“I’ve sent the invoice to my accountant.”
Etc.

When faced with

non-payment

late payment

, other entities, such as schools, find themselves in a unique situation. In such cases, for example, the reasons for non-payment relied on by parents are very specific:

“School is (or should be) free.” [The cost of teaching is supported by the community, but school supplies, outings, meals, etc. aren’t!]
“It’s my ex (husband, wife, partner, etc.) who should pay.” [In some cases, a court ruling confirms this statement. This judgment applies only to the relationship of the parents to each other, and not to creditors who are unconnected with the judgment and who can therefore count on the joint and several liability of the two parents or of one of the parents which may be more solvent than the other one.]
“My child is having problems at school (bullying, stolen mobile, etc.), and so I’m not paying.” [There is no link between this type of problem, whether actual or alleged, and invoicing for school services.]
Many other reasons are given, some of them absurd (“My child goes to sleep too late, because the boarding school’s not paying attention to his homework…!”).

In conclusion, remember that

payers

who can’t or won’t pay will always come up with a good reason for not paying their

debts

. That’s why your internal debt administration needs to take these challenges into account and properly manage orders, deliveries, disputes, etc. with a view to reducing

unpaid bills

. And it works! You wish more details on what we can do for you? Please don’t hesitate to contact TCM. Surf our

website