What is a defaulter
The meaning of a defaulter is a person or company that does not pay an outstanding invoice. Defaulting occurs regularly, and almost every entrepreneur has dealt with a defaulter at some point.
When is someone a defaulter?
The moment an invoice or bill is not paid by the due date, there is already technically a case of defaulting. In practice, defaulting is often only considered when the payment remains outstanding even after multiple payment reminders.
Causes of defaulting
There are various reasons why defaulting may occur. For example, because a defaulter simply does not have the money to pay a bill. Or, because a debtor uses delaying the payment of an invoice as a strategy. The defaulter can benefit from interest advantages in this way. Furthermore, there is a group of defaulters who knowingly order products or use services without the intention of paying for them.
