PracticeConsultingUnhealthy finance directors used as excuses for non-payment of debts

Unhealthy finance directors used as excuses for non-payment of debts

Cash flow problems, disputes with creditors even death are among the most common excuses businesses use to avoid paying their debts, a new survey reveals.

According to the Credit Services Association’s research, the favourite excuse among the commercial sector was ‘financial difficulties’ with ‘you’ll get paid when we do’ a familiar phrase.

Some businesses even claimed that their financial director was seriously ill and was unavailable to settle their debts, the CSA survey found.

Excuses within the consumer sector tended to focus on life stories such as relationship problems even death.

‘We can expect and anticipate most of the excuses,’ Stephen Lewis, President of the CSA said. ‘But being told that one of the directors has been shot or that a creditor would only be paid with divine intervention leaves even the most experienced debt collectors flummoxed.

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