It is not the end figure that matters most but rather the initial components/constituents of the debt, emanating from the order, the supply/delivery, quality/quantity, the terms, the invoicing, etc. The following are some of the types of debts but the list could be longer:

• Charged/secured debts – giving rise to debts subject to debentures/charges;
  
• Pre-fixed price/with order debt – giving rise to an agreed debt/terms;
  
• Negotiable price/with order debt – giving room to unsatisfied quest for further reductions;
  
• Pre-determined quality/variation debt – giving rise to quality and time ethical disputes;
  
• Interest charge option – giving rise to unpaid charged interest negotiable or otherwise – compromise option;
  
• Delayed performance debts – arising from disputed time/performance – pre determined or otherwise;
  
• Reversionary debts – (especially on assets) where debts are created subject to payment/right of ownership;
  
• Politically instigated debts – especially in banking institutions or general suppliers;
  
• Contra transaction created debts – noncash or cash-changing transactions;
  
• Deferred/hire purchase transactions – retention of ownership conditionality;
  
• Bills of exchange transactions (local/foreign) – credit rating/unpaid/ discounted/formalities;
  
• Merchandising transactions – unpaid / uncollected / misappropriated / unaccounted for;
  
• Deposit/prepayment debts – mandatory / requested / interest bearing or otherwise;
  
• Post-dated cheque transaction debts – purported/perceived/dishonoured or honoured/presented or unpresented.
  

Delay in debt settlement may be attributed to some of the following facts:

• Lack of funds by the debtor – which if/when detected can give rise to schemes of arrangement for settlement;
  
• Laxity/change of personnel – creating delays in follow-ups/lack of coordination;
  
• Faulty systems – accounting management failures – mechanical/manual;
  
• Unresolved disputes – based on a variety of reasons from pre-to post-creation of the debt;
  
• Personal inclinations – where certain debts are collectable by specific people – director;
  
• Omission and commission debts – where amounts are subject to certain regulations eg VAt and Withholding tax – charged/not paid – irregularly;
  
• Designed fraudulent debts – intercompany/party – where companies create debts with sister companies/individuals with ill motives or for contra/otherwise.
  

Before the collection can be initiated, the basic initiatives can broadly be categorised into the following:

• Technicality – dealing with the extraction/verification of the data:
  
  • Authority and origin of the debt/terms
  • Properly signed and stamped orders / letters of authority;
    
  • Invoice/signed delivery note – properly signed, stamped and authorised;
    
  • Contractual or engagement letter
  • Contractual terms defined and signed by both parties.
    
• Tactility – determining whether the delay is caused by
  • Internal or
  • External
• Methodology – determine the mode of approach:
  
  • Personal;
    
  • Analytical/soft;
    
  • repossession;
    
  • Collection agent;
    
  • Legal;
    
  • Arbitration.