Commercial Collections Blog

Blog > Coach's Corner > Back-office Functions

Back-office Functions

Is your company realizing substantial growth and running as effectively as possible? Are you challenged with how to successfully manage all of your back-office functions while generating enough sales to grow your business?

Starting today, you can consider Burt & Associates your back-office. As an SAS 70 Certified Commercial Collections Agency, Burt & Associates has the accounts receivables and financial solutions that will help you attain your business goals. By providing your business those critical back-office functions, we free up your time to attend to your business.

Burt & Associates is a recognized leader in commercial collections with the knowledge and expertise in management of accounts receivables and all other back-office services. In addition, we use the power of technology to generate results for your business efficiently and quickly.

Call me today to see which of our services will best fit your company and start improving your time-to-market, streamline your global processes and increase customer satisfaction, all while meeting corporate sales and revenue growth.

With warmest regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
A Hidden Threat to Secured Creditors In Section 552 of the U.S. Bankruptcy Code

Secured creditors generally embrace Section 552 of the U.S. Bankruptcy Code, which provides for an automatic severance of after-acquired property interests and the proceeds exception thereto. However, many secured creditors may be unaware of a hidden danger lurking in 552(b), the so-called equity exception. Section 552(b)’s equity exception has the potential to work a partial avoidance of an oversecured creditor’s property interests and thus diminish an otherwise healthy equity cushion for the creditor. This section is often ignored, but the provision can change the course of a bankruptcy reorganization in several ways. Further, despite the broad proceeds exception, 552(b) doesn’t provide an all-encompassing security interest preservation. Rather, one has to consider whether the property arising postpetition truly constitutes proceeds of encumbered prepetition property as well as whether the equity exception applies.

The Credit Manager’s Q&A Corner

Question: Explain what creditors should and shouldn’t do in a workout.

Answer: If you reach a situation with a customer that is classified as a workout situation, it is imperative that you understand what you should and should not do.

You should insist upon adequate audit procedures and also make certain all employees are paid in a timely manner. Make certain that all withholding taxes are being paid and do not rely upon verbal understandings. Everything should be in writing. Creditors involved in workout situations should also review all loan documents for accuracy as well as review collateral dispositions and look at potential material concessions on loans. Creditors should also be aware of personal guarantees and make certain that all trade creditors are dealt with honestly and given accurate and consistent responses to all of their questions.

The don’ts? Never threaten anything when you do not intend on following through and never say anything that could be construed as misleading. Never mislead trade creditors or use any documents that are inconsistent. Also, never, never offer opinions concerning the future. And, make certain that if you are a creditor, that you attend all board meetings. Finally, make certain never to hide a preference which could potentially turn into a fraudulent transfer.

Click Here To Read More »