Commercial Collections Blog

Aggressive Collection Demands

The longer an account goes unpaid, the less likely the account will pay. At 90 days past due, your account value begins to decline rapidly. At 6 months past due, you are likely to recover only 30% of the account balance owed to you.

Aggressive collection demands are sometimes necessary. Forwarding delinquent accounts to an SAS-70 certified commercial collections agency before they become 90 days past due more than triples your chances of getting paid what is owed to you. Highly skilled commercial collection collectors can motivate difficult customers to pay their accounts.

Burt & Associates will get your delinquent accounts collected. Our seasoned, professional commercial collectors are experts at collecting your delinquent money. The best time to hire a collection agency is yesterday!

Warm regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
Evaluating Whether to Sue An Insolvent Debtor

Outside considerations of bankruptcy, a creditor’s objective, in a collection lawsuit, is usually to be paid as much as possible as fast as possible. If a creditor forces payment, whether alone or with the actions of other creditors, that payment could strain the financial situation of the debtor and the debtor may be forced to file for bankruptcy protection. Further, if a payment may be recovered by the debtor in possession or the trustee as a preference, creditors may then be in a worse situation than if they had proceeded more cautiously or settled for less. Under bankruptcy, the creditor has a conflicting incentive to minimize financial pressure on the debtor. The main objective of an insolvent debtor, when defending a collection lawsuit, is not so much to avoid paying the debt but simply to win a delay.

The Credit Manager’s Q&A Corner

Question: Explain the notion of syndication in the context of risk management.

Answer: Syndication is a risk-management process whereby a bank sells portions of a loan to other banks. This allows the original bank to diversify the risk involved in granting the loan.

Related Posts:

• Commercial Debt Collection – What does it cost
• Need Cash? – Hire a Business Debt Collections Agency So You Can Pay Your Bills
• Bad Debt-Bad Debt- Wait and Hope or Collect Today
• Successful Collections Eliminate Depreciation
• Burt Risk Score