Turning Accounts Over to Collections The Facts of Business LifeThere are a number of aspects of business life that make it both rewarding and challenging. You start a company and build it to create satisfied customers and to make a profit. That process includes a number of steps and many of them have to do with managing your working capital and cash flow.Your goal is to grow and enjoy success. The more you achieve this, the more of a challenge you have in maintaining the close personal touch you desire with each of your customers. While you use a number of methods and effective CRM procedures, the simple fact is that many customers go on your list of accounts receivable without a close relationship being established.Another fact is that as you grow, the issue of delinquent accounts becomes more of a concern. It is a law of large numbers that as your customer list grows the number of those customers who will be late in paying will also increase. There are numerous reasons and factors involved in the process, but the net result is that you have to consider the issue of debt collection for these delinquent accounts.Collecting Accounts ReceivablesThe first hurdle for many business owners to overcome is the necessity of dealing with the debt collection process. Most entrepreneurs and people who have grown their businesses are empathetic to the issue of tight cash flow and the pressure of paying all the bills outstanding. Even managers of large companies often hesitate to put any pressure on loyal and struggling customers.The fact is that collecting the debts you are legally owed is actually an ethical responsibility of any business owner. You are not in business to finance others, and carefully managing your cash flow is, in fact, an ethical responsibility to your employees, investors and bankers. It may be an unpleasant responsibility, but it is there, nonetheless.The challenge, of course, is to approach the responsibility of debt collection in a professional, ethical and empathetic way. There are many resources and vehicles that allow you to deal with delinquent accounts in this manner. The issue is for you to take the time to carefully review all these options and select those that reflect your personal and corporate values.Automating the Personal TouchAs noted, maintaining a personal touch with your customers becomes more of a challenge with success and growth. The irony is this personal touch was a factor in your growth, and losing it can be a big negative dynamic. Fortunately, modern technology exists that allows at least some lessening of the effects of that reality. With a corporate priority of maintaining a focus on customers, and the use of systems that make that easier, you will stand a good chance of beating your competition in this area that is important to most customers.It makes sense, then, to carry this attitude over to the management of your accounts receivable. When growth means the death of the days when Betty or Bob knows that Acme is behind on an invoice, and a short call will solve the problem, the right systems have to be installed. The great thing is that you have the choice in determining what those systems do and how they are used.The very word system indicates that there is a process that automatically deals with the issue. When it comes to your A/R, that system would automatically notify management on a regular basis of what accounts are past the agreed payment schedule. Such notification should include details such as amounts, total delinquency, past payment performance, length of time as a customer, total sales, and other such information. The optimized system would also include comments and observations from sales and other sources that might give a hint as to the reason for late payment.With this first critical step of making sure that the right person in management is at least aware of the status of accounts that are delinquent, you are in control of the situation. It is at this point that you can exercise individual judgment and determine the appropriate course of action. Those factors will differ from industry to industry. In some cases, many accounts may automatically be turned over to the professional collection agency that you have carefully chosen for the methods they use. In other situations, personal calls from management or sales may be the appropriate course of action before turning them over to your commercial collection firm. Remember, the goal is to be in control and manage the process.You can see that you have a number of options and decisions to make. Going back to facts, however, you simply must fully address the issue of collecting from your customers in a timely and thorough manner. When the time comes that a commercial collection agency is the right step, ensure you select the firm that treats those overdue accounts in the manner you desire.Connect with us on Google+ ...read more

Making it a Priority Any business owner who seeks to successfully and profitably grow a business knows that having sufficient working capital is a constant struggle. It is a simple fact of business that growth consumes cash and working capital. As more customers and sales are added, your cash and capital are soaked up by higher inventory levels and more employees along with other expenses and investments. One of the major areas of your business that requires additional capital is your receivables. By nature, most entrepreneurs look to growing sales as a major indicator of their company’s increasing success. However, those entrepreneurs and business owners who survive over the long-term come to qualify that metric with several factors. First, they learn to focus on profitable sales, not merely chalking up a big turnover. Profits are essential and cutting margins to generate sales is a sure path to problems. A second important lesson learned is that sales don’t really count until they become money in the bank. The failure to focus on such a basic financial ratio asDSOis one of theprimary sources of business failure among SMBs. If a business owner or manager does not understand and appreciate the importance of tightly managing accounts receivable or does not place a high priority on debt collection, cash flow problems are virtually guaranteed to impact a company’s financial health. Rising sales will mean rising levels of accounts receivable. However, it is essential to monitor the measure of DSO, particularly during a period of rapid growth. Your goal is profitable revenue growth, not financing other businesses. While it is easy to lower credit standards to land more customers, those gains can prove both illusory and dangerous to your company. On the other hand, keeping control of what is owed can lower the level of additional working capital you need. Just as importantly, the longer a debt is left uncollected, the more difficult it is to recover what you are owed. Many business owners end up asking how they can grow and keep their receivables balance under control. Depending on your particular business model,having all customers pay within 60 days is wiseand looks good to your bankers and other backers.Debt collectionis an essential business function. Here are several tips on keeping control of your receivables. Establish Your Standards The Internet makes it very easy today to obtain detailed and accurate information concerning a prospective customer’s credit status. In addition to traditional services such as Dun&Bradstreet, there are now a number of free to low-cost services that provide ways to check on clients. If you deal with larger invoices, you may require a credit application from a customer. One handy tool is a relationship with a factoring company. Even if you only use them for a few of your larger customers and invoices, they are practiced at evaluating any credit risk. Sometimes the best way to solve a credit problem is to not give credit or tightly control it in the first place. Establish Expectations Far too many businesses fail to make it clear to their customers that they expect to be paid by a certain time. The sales invoice should clearly set forth the date that the payment is expected and establish the late payment fees. It is a good discipline and totally acceptable to verify with the customer at the time of the sale that meeting the stated payment schedule won’t be a problem. Make it Easy to Pay the Bill Sometimes speeding up payment is a simple matter of making it easy for a customer to remember and remit. Get your invoices out on time and on a clockwork basis. It is really amazing to see how many businesses have an increase in DSO simply because they don’t send out bill and invoices regularly. Also, it is increasingly easy to provide customers with a multitude of ways to pay. Simply waiting for a “check in the mail” should never be a reason for your accounts receivable to grow. Consider the options of automatic pay, direct deposit, electronic services such as PayPal and Google Checkout, and other methods. Factor in any additional costs you will incur and make sure the customer absorbs at least a part of them. Weigh the Advantages of Incentives versus Penalties If you plan ahead, it is very easy to set your pricing to absorb a small discount for invoices being paid on time rather than relying on a distasteful penalty for late payment. Again, depending on your industry, a net 30 or 60 day discount can be more effective than having to turn to less positive   procedures that are sometimes necessary for severely delinquent accounts. Stay involved and you will see your invoices paid more promptly. Connect with us onGoogle+ ...read more

The Entrepreneurial Mindset Most entrepreneurs are unique individuals. They treasure the idea of being their own boss and pay a high price to start a business or try and build their business. These individuals have been studied by many professionals to try and sort out what makes them who they are. While much of that question remains unanswered, there is a common agreement that one essential trait is the ability to focus and work toward goals while avoiding distractions. For most small business owners and entrepreneurs, there is a clear priority on generating revenue. Making sales is seen as a clear sign of getting business done and a concrete movement towards success. Unfortunately, it takes time for many of these individuals to become experienced enough to realize that generating sales and revenue is only part of the game. Those sales must be turned into cash receipts and money that can be used to generate more sales. The issue ofdebt collectionis not an early priority. Cash is King Business debt collection does, however, become important to the business person when receivables start to reach a point where they impact a company’s financial survival. Once business owners and managers realize that collecting on a sale is as important as first making it, their approach to the process goes through a transformation. They begin to seek out customers that can pay as well as buy. Factors Affecting the Approach to Debt Collection Of course, those same business owners have bills they have to pay and represent receivables to other businesses. Fortunately, most business people seek to run their businesses in an ethical manner. They pay their bills on time and expect others to do the same. However, tough economic times can change that equation.The first aspect of the ethics of collecting on money owed is understanding the ethical basis of seeking overdue payments. If a product or service has been delivered to a customer in the manner promised with no issue over the work done or products received, the money is rightly owed and it is ethical and necessary to pursue that payment. The website nolo.com points out that there are three types of customers that cause business debt to be slow in payment. These are: • Those that want to and usually do pay on time but are in financial difficulties. • Those that will pay but delay payments as a part of how they finance their business. • Those that avoid payments as a standard practice and don’t want to pay. The second step in developing an ethical approach tobusiness debt collectionis understanding these three types of approaches. The specific circumstances of why a payment is late may or may not have a bearing on the right and ethical methods of pursuing that rightful debt. The methods used in collecting on debt are the third major factor to consider. There are, of course, legal guidelines related to the process and what is acceptable. However, these represent only the lowest level of the overall issue of seeking collection of overdue payments. While there is a requirement to follow the letter of the law, a business owner has the ability and need to establish the ethics they will follow relative to business debt. This starts with who will be granted credit and what the terms of the extended credit are. Likewise, clear and consistent policies for all customers should be clearly communicated. Once debts reach a point requiring formal collection action, a professional firm is normally engaged. The business owner should ensure that the firm they select abides by the legal and ethical standards they want for their own companies to represent. Connect to us onGoogle+ ...read more

TheAccounts Receivable Aging Scheduleis a useful tool for analyzing the aging of your accounts receivable. Analyzing the schedule allows you to spot problems in accounts receivable early, protecting your business from major cash-flow problemsThe aging schedule can be used toidentify the customers that are extending beyond your collection terms. If the bulk of the overdue amount in receivables is attributable to one customer, then steps can be taken to see that this customer’s account is collected promptly. If overdue amounts stem from a number of customers, your business needs to tighten its credit policy toward new and existing customers. The A/R Aging Schedule also identifies anyrecent changesin the accounts making up your total accountsreceivable balance. If the makeup of your accounts receivable changes (compared to the previous month) you should be able to spot the change instantly. Is the change the result of a change in your credit policy, or caused by some sort of billing problem? What effect will this change in accounts receivable have on next month’s cash inflows? The accounts receivable aging schedule can help you spot these problems in accounts receivable and provide the necessary answers early enough to protect your business from cash-flow problems. Valuable tool when going afterdebt collectionon your accounts ...read more

State Statutes of Limitations for Debt Collection A statute of limitations sets forth the maximum period of time, after the debtor becomes delinquent, that legal proceedings (law suits) can be initiated.  After the times shown below, a court will throw out any lawsuit.The type of debt affects the statute of limitations, too. Credit cards are usually considered to be “Open Accounts”. Auto loans and other installment-type agreements are considered “Written Contracts”.Note:  This table is for informational purposes only – it does not represent any form of legal advice. To act on a legal action, contact a lawyer and/or check with your state’s attorney general’s officeStateOral AgreementsWritten Contracts( including auto loansand installment type loans)Promissory NotesOpen Accounts(includes credit cards)Alabama6663Alaska6666Arizona3653Arkansas3563California2444Colorado6666Connecticut3666Delaware3363District of Columbia3333Florida4554Georgia4664Hawaii6666Idaho45104Illinois51065Indiana610106Iowa51055Kansas3553Kentucky515155Louisiana1010103Maine6666Maryland3363Massachusetts6666Michigan6666Minnesota6666Mississippi3333Missouri510105Montana5885Nebraska4564Nevada4634New Hampshire3363New Jersey6666New Mexico4664New York6666North Carolina3353North Dakota6666Ohio61515?Oklahoma3553Oregon6666Pennsylvania4646Rhode Island15151010South Carolina101033South Dakota6666Tennessee6666Texas4444Utah4664Vermont6656Virginia3563Virgin Islands3333Washington3663West Virginia51065Wisconsin66106Wyoming810108 Commercial Collection Topics : ...read more

We've just published a new edition of our newsletter! You can check it out on our website and get the latest information from Consumer Credit Counseling Service. Let us know what you think! Read It Now Here JacksonvilleFort LauderdaleMiamiPort Saint LuciePembroke PinesTampaTallahasseeSaint PetersburgOrlandoHialeah ...read more

Fair Credit Reporting Act (Summary) Public Law 91-508 The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his credit report on the basis of "completeness and accuracy." If, after a reinvestigation by the credit bureau, the disputed information "is found to be inaccurate or can no longer be verified, the [credit bureau] shall promptly delete such information." The credit bureaus are required to complete the investigation within a "reasonable period of time." This period has been set at thirty days. The credit bureaus can ignore the consumer dispute if they have reason to believe that the dispute is "frivolous or irrelevant." The FTC commentary on the FCRA cites, as an example of a frivolous dispute, a dispute wherein the consumer challenges all negative items on his credit report without providing any allegations regarding specific items in the credit file. However, "A [credit bureau] must assume a consumer's dispute is bona fide, unless there is clear and convincing evidence to the contrary." When a consumer challenges a negative credit listing on the basis of extenuating circumstances, such as health problems, divorce, job loss, etc., the credit bureaus are entitled to ignore that dispute. When a consumer submits a dispute which is neither frivolous nor irrelevant by credit bureau standards, the credit bureau must "at a minimum... check with the original sources or other reliable sources of the disputed information and inform them of the nature of the consumer's dispute." In some cases of consumer dispute, "Reinvestigation and verification may require more than asking the original source of the disputed information the same question and receiving the same answer." In other words, when a consumer files or re-files a valid dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. In some circumstances, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If, within 30 days, the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing. In theory and law, the process is deceptively simple, thus leading many people to think that they can easily handle this themselves "for the price of a few postage stamps." Most quickly discover that the credit bureaus have made it much more difficult than one would imagine. For help in this, we recommend using Lexington Law a professional credit report repair company.   Credit Counseling Miami     Bankruptcy Assistance Miami     Florida     Miami     Consumer Credit Counseling Miami     City of Miami     Free Credit Counseling Miami     Miami Florida     Debt Counseling Miami     CCCS FL   ...read more

Due to the foreclosure crisis there are loan modification "mills" cropping up everywhere. When Pre-Paid Legal member Ms. Maldonado contacted her provider law firm the attorney that she spoke with knew exactly what she needed to do. She wrote a letter to the loan modification company and within 2 weeks Ms. Maldonado got a check from the mortgage rescue (as they like to call themselves) company.  In Miami Dade county there are thousands of properties going into foreclosure every month. Many attorneys and non-attorneys have built businesses with the promise to help homeowners keep their home.  Some may do what they promise but many are just in the loan modification business for the money they can make.  Many people that live in Miami do not understand that their first lstop should be the bank.  There are federal programs out there that are working with the banks to help homeowners whenever possible. Yes, not all loan modifications are accepted, and there are many factors for that. For example, the HAMP program requires steady income. If you are not employed it will be difficult to get a loan modification so before you go out and spend thousands of dollars to pay for a loan modification "expert" make sure that you do qualify for the program that you are applying for. Also, careful with the so called "loan forensic audit", the FTC issued a warning on their validity and usefulness when it comes to facing a bank regarding your loan.  Always read  between the lines. Finally, be very careful when you pick up your phone.  There are "non-profit" organizations out there that in reality they are operating calling centers selling legal memberships for foreclosure victims.  When they call they introduce themselves as a non-profit organization established to help homeowners. They also say that they have "programs" to help homeowners when in reality they have been hired to sell a "legal foreclosure membership" that costs around $700 a month.  Their track record is questionable and their use of a loan forensic audit as mentioned above raises red flags. Pre-Paid Legal members are only a phone call away to get some resolution to their problems, even when it involves a law firm operating as a loan modification mill in Miami or anywhere else.  Ask Ms. Maldonado, she used the money her Pre-Paid Legal's  provider law firm got from the previous company and she is now working with a reputable company and has an approved loan modification with a reduction of 85% of her monthly mortgage payment. ...read more

Pre-Paid Legal Services  Established 1972  Small Business Pre-Paid Legal Services cost $75.00 monthly - no contract  - Unlimited Consultations with Attorneys  - Collection Letters written by an attorney  - Bad Check Recovery  - Court Representation  - Tax, HR, Advertising consultants  Contact our office at 1-888-771-3330 Option 1 for a no-pressure consultation with a local Small Business Pre-Paid Legal Consultant  http://www.smallbusinesslegalplan.com/  ...read more

An important decision the company wants to raise capital has to be chosen the best solution for the various options for funding the construction. The bankers, investment bankers and other financial professionals can provide a variety of options in addition to a bank loan easily, which is essentially a loan, which can be a term loan or a revolving credit line. Other financial experts may also provide opportunities for convertible debt is converted to shares can be converted at a fixed price per share. Mezzanine capital, which is essentially convertible subordinated notes, but usually three of five years and often requires a substantial advantage in addition to the options on the Notes for more information, please call 877-740-7839 Burt and Associates (305) 735-1910 Solid Experience. Strong Solutions. Since 1979 Collection Agency Price Quotes ...read more

If the debtor is in bankruptcy if it remained under Chapter 7 or 11 and whether a voluntary or involuntary filing, "all facilities" are automatically and immediately to any action or pursue legal action against the debtor. This includes attempts to recover the debts of the debtor, by any party. This also applies to the application of liens on property of the debtor. This stay also applies to the purchase of the property. prepared, if the creditor had taken the property before the filing of the case, but he had on sales, creditors and was the key word here is "could", needed to make restitution of the assets of the bankrupt . Burt and Associates Solid Experience. Strong Solutions. Since 1979 (305) 735-1910 Collection Agency Price Quotes ...read more

The Burn Rate is often confused with the total amount of money from a real company, no matter their income. This is not entirely correct. Burning rate of a business is the net amount of cash that is burning in a period of time. Let's say that, if a company starts the year with $ 6 million in the bank and ended the year with $ 5 million, the burn rate is $ 1 million a year. Many investors confuse this with the total amount of money a company invests in basic expenses such as salaries, rents, etc. Therefore, the combustion rate is connected with a company that uses its venture capital to finance new expenditures before generate a positive operating cash flow. Burt rate is the representation of negative cash flow Burt & Associates 1-877-740-7839 Solid Experience. Strong Solutions. Since 1979 Collection Agency Price Quotes ...read more

We've just published a new edition of our newsletter! You can check it out on our website and get the latest information from Commercial Collection Agency. Let us know what you think! Read It Now Here ...read more

Smoking may kill us. On the other hand, the non-smokers are inside working themselves to death!. Collection Agency Miami Collection Agency in Miami Full Debt Commercial Collection Agency Coverage for Miami FL Jacksonville | Orlando | Miami | Tampa Bay Burt&Associates; a national commercial collection agency with full collection coverage for Miami. We invite you to review our services and feel free to contact us with any questions or comments you may have. Collection Agency in Miami Miami Metro Area:82 Southwest 7th StreetMIAMI, FL33130 By PhoneDirect : (305) 735-1910 Collection Agency Price Quotesand get an analysis in your A/R ...read more

Currently our Beta testers are at a 99% approval rate for new accounts.  These new accounts are used to transfer debt to 0% interest rates and to reestablish credit for those who have low credit scores.  Currently we are tracking most credit card companies and financial institutions across America.  Knowing who is doing what helps us bring resources for those who need money and want to be debt free. * Increase your FICO score: credit enhancement.← Beta test group EC-300 still seeking volunteersBeta test R-400 for Renters →Beta test group C-200 still seeking volunteersIf you would really like to hit a home run regarding your finances and credit I would recommend that you do this: Be a Dr Debt Beta Tester! Dr Debt is seeking volunteers to beta test his updated debt cures strategy. The test subjects will be guided personally by Dr. Debt in: 1. Raising and managing credit scores2. Paying off all consumer debt3. Eliminating 70 percent to 92 percent of mortgage interest4. Accelerating the pay-off of your mortgage5. Obtaining the credit you need safelyRequirements for participation:1. A working computer with internet access2. The ability to follow instructions and complete tasks3. An email account that you check daily4. The ability to scan and email documents5. One-half hour every week to complete required tasks6. Total debt's owed of at least $10,0007. Currently employed or have an adequate income source8. Have a credit score that lies between 550 and 800 Beta testers do not pay any fees. To become one of the subjects please email Dr. Debt atSupport@easydebtcures.com.Thank you!Dr Debt support team ...read more