By Royal Cellular February 22, 2012
Wishing you great success in making 2012 your best and most prosperous year ever! Here is a high five to you! Need to get more customers and increase traffic in your store? See how the Highly Profitable Text Message Marketing Only $99 Flat Rate and 100% Guaranteed can work for your business. Click the link for Your FREE! "Cashing In On The Mobile Marketing Explosion Report" http://www.boostcontact.com/vid/247mobile.html Your access code is 2531 Never pay retail price for a cell phone! Discount pricing on cell phones at www.topfreephone.com for you or your business! Don Alsept Royal Cellular 1115 W Robb Ave Lima, Ohio 45801 419-225-6337 contact@royal-cellular.com www.royal-cellular.com ...read more
By Accounting for Profits January 09, 2012
Thanks for the connection on Merchant Circle. Here's wishing you continued success in your business venture. Giving 5 stars and other "compliments" to your great MC site for your kindness. If you should need an accountant, part time CFO, part time controller, or just have accounting and bookkeeping questions, please give us a call. Thanks, Jesse www.AccountingForProfits.Net ...read more
By Chair Caning & Wicker Repair December 11, 2011
Chair Caning & Wicker Repair Mooresville, NC. 704-235-8171 (By Appointment Only) – is honored have to you join our network. We wish your business to have continued growth and success. To help with your success here is five stars for your great company. We would also like to extend a special discount to our connections & their clients, just mention Merchant Circle for discount. Let us help on any Chair Caning or Wicker Repair needs. Services Include: Rush - Fiber or Natural, Pressed Cane, Hand/Strand Cane, Splint, Blind Cane, Danish Cord, and Wicker Repair. Visit our website www.chaircaning.webs.com for photos of recent repairs. ...read more
A Guide Dealing with Delinquent Accounts Protecting an AssetBuilding and managing a successful business is tough and demanding. That is a fact that only those who have done so can fully appreciate. The reality that there are so many challenges on so many fronts is one aspect of the process that actually produces a sense of accomplishment when success is achieved.In operating and building a company, you will create a number of assets that are a measure of your success. One of those assets often viewed with less a priority than others is the company’s accounts receivable. Because of a lack of management attention or concern, that important area of your company’s financial strength is often allowed to deteriorate. The Maryland State Bar illustrates the importance of timely debt recovery in reporting that:An invoice over 60 days has only a 70% chance of being collected in full After 90 days, the chance of collecting the invoice in full drops to 45 % After 120 days, the probability of collecting in full falls to 20%. When receivables age without a consistent and disciplined approach to collection, they begin to lose value. The longer a debt is left uncollected, the more unlikely it is you will receive full value from it. Additionally, the time-value of money continues to erode the profitability of the sale you made to the customer to create the receivable. Experian reported in 2012 that the average delay in paying invoices has now moved to 62 days.A useful analogy might be considering another of your assets, your property or equipment. If they were losing value every day because of a lack of management or maintenance, you would sense the need to take immediate and proactive action. It is a sign of such good management to view your list of receivables with the same sense of urgency. When yourDSO is five percent greater than your terms, or you write off more than .2 percent of your sales, there is collection work to be done.Following Established ProceduresLet’s face it. You didn’t work to get in a management position to perform preventative maintenance on an expensive piece of equipment. However, you don’t ignore the need; you just assign that task to a qualified technician. Likewise, you don’t view yourself as a debt collector. In similar fashion, the task of debt recovery must be assigned to qualified personnel for consistent and effective maintenance.There are many reasons for customers falling behind on their obligations to your company. While it can be appropriate to take those factors into consideration for large or long-time clients, most businesses simply can’t afford to deal with debt recovery on a piecemeal and sporadic basis. After thirty days Past Due Terms with in-house collection efforts exhausted, it is practical to consider the customer as a debtor. The proper way to handle the issue is to establish a thoughtful and rational system that deals with every aspect of the receivables process.Achieving such a goal requires adopting a best practices approach to collections. Such a plan includes:A consistent process of invoicing all customers Sending a simple notice after an invoice is five or ten days late Establishing clear criteria for when the item is turned over to a commercial debt collector. Burt and AssociatesThere are, of course, a lot of details in establishing such a protocol. Yet, there are no real mysteries about what is required to properly manage your vital asset of accounts receivables. If your clients and customers understand up front that you are serious about getting paid for your products and services, they will expect you to be as reliable and professional in the area of debt collection as you are in all aspects of your business. In fact, other successful businesses expect no less from their suppliers and vendors.The Role of the Commercial Debt CollectorWhile some view the need for using an outside debt collector to assist with receivables akin to a trip to the dentist, the fact is that they both play an essential role. Each has tools, skills and training to accomplish tasks we can’t effectively do ourselves. Once a customer demonstrates that they aren’t interested in resolving a debt by inaction or by ignoring your best efforts, it’s time for a professional to deal with the problem.There are two major considerations concerning the issue of outsourcing your collection of overdue invoices. First is the need to be proactive. Going back to the issue of best practices, selecting a commercial debt collector firm that agrees with your company philosophies is an essential initial step. They will prove invaluable in establishing the entire process so that it is consistent and communicates clear expectations of prompt payment.The second consideration lies in understanding that outsourcing a delinquent or bad debt to a third-party debt collector changes the dynamics of the process. These firms have a number of resources that they employ to increase the effectiveness of the debt collection process. Additionally, your company is freed from the concern, enabling you to focus on what you do best and accepting that a professional is now seeking to protect and recover your assets.As with most challenges in business, planning and proactive processes provide the best possible solutions.Connect with us on Google+ ...read more
By Commercial Collection Agency B&A October 17, 2013
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 ofdebt collectionfor 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
By Commercial Collection Agency B&A October 17, 2013
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 as DSO is one of the primary 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 wise and looks good to your bankers and other backers. Debt collection is 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 on Google+ ...read more
By Commercial Collection Agency B&A September 10, 2013
Not being able to pay your creditors due to job loss or other unforeseen circumstances can leave you feeling overwhelmed. Bill collectors will call you at all hours of the day attempting collect. A debt reduction service may be the answer for your situation, but there are scams that you will want to a... ...read more
Making sales these days is highly competitive and if you are not accepting charge and debit cards, you are missing out on sales. There are many different types of processing equipment deals as well as variables in merchant services. Learn how merchant services work and put them to use to make sales yo... ...read more