The different types of debtors are as follows:
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.