The different types of debtors are as follows:

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1)      Careless Debtors:

He is the one who forgets to pay unless he is reminded to pay. 

2)      Reluctant Debtors:

He is the one who will not pay until he is forced to do so. He is always ready with excuse for not paying.

3)      Installment Debtors:

He is a type of debtor who piles up large sums of credit and then sets about meeting his obligations in small installments.

4)      Good-Risk Debtors:

This type of debtor pays his debts even before they are asked for. He can be called as “gilt-edged debtor”, like a “gilt-edged security”.

5)      Poor-Risk Debtors:

This type neither has the capacity nor capital to pay. He is constantly over-trading and short of funds. Such people should not be given credit.

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