The Three Levels Of Debtors
Level 1- A level 1 debtor
is identified as a company making payment in full to company’s
they need to keep their business afloat. They try to make
payments to you less than the minimum requirement in  order
to keep a business relationship, and secure product when
needed in the future. A level 1 debtor will still order
product or services, falling deeper into debt with your
company. With a level 1 customer we come in as a third party
voice educating them on your credit terms, and bring them
back as a better paying customer. This is called the “Soft”
approach or internal “audit”. We utilize over ten million
dollars of investigative equipment to find out what internal
complications your client may be having (lawsuits, leans,
UCC filings etc.). We will then present you with the information
and determine the best way to approach the client.
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Level 2- A level 2 debtor
is identified as a company not making payments, failing
to return calls, or answer to letters. Most level 2 debtors
have debt over 180 days, and no longer feel that the full
amount is owed. When dealing with a level 2 debtor, we do
not send out letters or make phone calls as you have already
done for the first 90 days. We utilize the “Strong” approach
in which we send out Private Investigators, certified fraud
examiners out to the debtor’s place of business face to
face in order to find out why they no longer feel that the
money is owed.
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