Only 14% of companies admit that their debtors are greatly embarrassed when they transfer their debts to a debt collection agency for recovery. This phenomenon is most commonly encountered by construction companies and least commonly by wholesale companies, with only 12% acknowledging such experience. This image of business mentality is provided by the study “Entrepreneurs towards their debtors” by Kaczmarski Inkasso.
Delayed payments or non-payments hit directly at the financial stability of companies and their ability to develop and invest. The smaller the entity and the fewer the customers, the more strongly the lack of cash is felt. One might think that non-payment is a cause for deep shame for entrepreneurs, and the need to recover debts through their counterparts does not give any reason for pride. Nevertheless, reality presents a surprising picture of the relations between creditors and debtors.
The study conducted by the debt collection agency Kaczmarski Inkasso shows how debtors and creditors approach overdue payments and debt recovery. The scale of shame related to financial arrears and the enforcement of these arrears varies depending on the size of the company and its market experience.
Older entrepreneurs are not ashamed to claim their money
Money frozen with unreliable partners is a cause for concern about the future of the company and its employees. Some entrepreneurs take matters into their own hands and pass unpaid invoices for collection. External negotiators are a catalyst in direct contact between the creditor and the debtor, helping to reach a consensus.
The Kaczmarski Inkasso study shows that only 4% of companies are embarrassed to demand payment from their counterparts. 3 out of 10 businesses consider the recovery of their receivables to be a normal action that is part of doing business.
“Our long-standing practice in servicing SMEs shows, unfortunately, a group of companies that hesitate to enforce their receivables. They fear losing the customer or straining business relations. Meanwhile, substantive and regular reminding of payments or transferring them to debt collection is not only a norm in professional business but also indicates financial maturity and concern for business interests…” observes Jakub Kostecki, President of the Management Board of Kaczmarski Inkasso.
Older companies, present in the market for over 10 years, show significantly higher maturity in handling their finances, including demanding eligibility. As many as 46% of them believe that enforcing payment from customers is the norm…
Debtors’ Shame – Through the Eyes of Creditors
The study indicates that a mere 14% of companies clearly state that their debtors feel shame when these companies forward their arrears to debt collection agencies…
On the other hand, younger entities may be less experienced in the collection processes. However, as time progresses, companies learn to treat collection as a natural element of managing finances. Interestingly, only one in ten respondents believe that transferring debt to a collection company can teach the customer to pay on time…
The Debtor Playing the Victim
On the extreme end are those for whom avoiding payment is not a shame. Almost 1 in 10 companies (11%) claims that debtors do not feel any shame about overdue liabilities that their counterpart has handed over to collection…
The study “Entrepreneurs facing their Debtors” was conducted by TGM Research commissioned by the debt collection company Kaczmarski Inkasso in July 2024 using the CAWI method on a representative group of 400 entrepreneurs from the SME sector; issuing invoices with an extended payment deadline.
Source: https://managerplus.pl/polski-dluznik-nie-wstydzi-sie-dlugow-tylko-14-wierzycieli-dostrzega-skrepowanie-u-dluznikow-30408
