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Business Debt Collection

How common is it that there are consistently problems collecting money from customers? Some business owners, especially new business owners are so eager for a sale that they don’t document or discuss payment, then they don’t want to offend the customer by asking for their money. Is it worth it for a small business to attempt to go after the money due? It depends on the amount of the bill and what information you already have on the customer, such as contact information so you can get a hold of them or even take them to small claims court.

What legal issues are involved with collecting money? You will have to follow the Fair Debt Collection Practices Act (FDCPA) and any laws in your state. You should also have a contract or signed agreement to protect yourself.

What are some of the ways a company can protect itself, or precautions that can be taken? Should a company change the way they do business in any way? Always get a credit application and check references if extending credit. Have a good credit policy and stick to it!

What are the steps that a company needs to take to collect money due to them? If your calls or letters don’t prompt payment, place your account for collection. Please check our Interactive Business Debt Recovery Chart

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This service is 100% gauranteed. If you are unsatisfied with the collection of the account for any reason after 7 days, simply tell me and I will cancel the account, no questions asked.

Burt & Associates is a SAS-70 Type II certified and compliant Commercial Collection Agency. Please give me a call today to get us working for you.

Regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive

Collecting Past-Due Bills

Whenever the economy slows down or has trouble regaining its strength, credit and finance executives may notice troubling signs of a slowdown in payments from debtors. Slow-paying accounts can cost creditors extra time and money in collection attempts, fees for collection agencies and legal costs. All of this can be a drain on the company’s cash. Therefore, it is essential that those in charge of the credit/collection function take extra care to make sure statements have clear payment terms on them. They must also make prompt phone calls on late-paying accounts and properly log all correspondence with debtors, noting the day and time each customer is called.

The Credit Manager’s Q&A Corner

QUESTION: Explain what a debtor-in-possession is.

ANSWER: A debtor-in-possession is a bankrupt debtor that remains in control of its operations. That’s in contrast to having a trustee operate the company.

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