The accounts receivable aging schedule is a useful tool for analyzing the makeup of your accounts receivable balance. Analyzing the schedule allows you to spot problems in accounts receivable early enough to protect your business from major cash-flow problems.

The A/R aging schedule can be used to identify the customers that are extending the time it takes for you to collect your accounts receivable. 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, that could be a signal that your business needs to tighten its credit policy toward new and existing customers. For more information call us at 877-740-7839
Burt and Associates
1-877-740-7839
Solid Experience. Strong Solutions. Since 1979
Collection Agency Price Quotes

Technorati Tags ACCOUNTS RECEIVABLES, burtandassociates, business

A corporation’s earnings report can have a devastating effect on its stock price if earnings even barely fail to meet the company’s projections.  If a company misses its earnings estimates, investors may hammer its stock, thinking that the company would have used every accounting trick in the book to meet the projections. Therefore, the reasoning goes, missing projections must mean trouble is ahead.  Such pressure from Wall Street can force companies to implement unusual methods to meet short-term earnings targets, possibly at the expense of longer-term growth. A survey of more than 400 financial executives revealed that more than 70% of the respondents said they would cut discretionary spending on things like research, development and hiring in order to rein in costs, meet projections and satisfy Wall Street’s demands for hitting quarterly earnings targets. Some have suggested that companies should cease putting out estimates of quarterly earnings and focus more on longer-term business strategy. For more information call us today.

Burt and Associates
1-877-740-7839
Collection Agency Price Quotes

Technorati Tags burt and associates

 Accounting departments are responsible for more than just keeping financial records. Increasingly, chief financial officers are in charge of cost-cutting strategies for their companies. Such strategies often involve cutting jobs and ending projects, but these are easy short-term fixes that can often fail to address more serious structural issues. Worse, short-term cuts may actually endanger a firm’s potential for growth. For more effective ways to reduce costs, financial officers should carefully and objectively review all of a company’s costs and cut expenses in areas with a long-term strategy in mind. For more information call us at 1-877-740-7839

An important decision for a company wanting to raise capital is that of choosing its best option among the various ways to obtain/structure financing. Bankers, investment bankers and other financial specialists may offer a number of possibilities besides straightforward bank debt, which is basically a loan that can be a fixed term loan or a revolving line of credit. Other possibilities financial specialists may offer include convertible debt, which is debt that may be converted into equity at some predetermined price per share. Mezzanine debt, which is senior to equity but subordinate to convertible debt, typically has a term of three to five years and often requires warrants or stock options in addition to substantial interest rates on the notes for more information call us at 877-740-7839

Burt and Associates
Solid Experience. Strong Solutions. Since 1979
Collection Agency Price Quotes

Technorati Tags burtandassociates, raising capital

When a debtor files for bankruptcy, whether it be under Chapter 7 or 11 and whether it be a voluntary or involuntary filing, “all entities” are automatically and immediately stayed from taking any action or continuing any legal action against the debtor.
This includes attempts to collect debt from the debtor by any party.  This also applies to the enforcement of liens against the debtor’s property.

This stay also relates to repossession of property.  If the creditor had repossessed property prior to the filing of the case but had disposed of it by sales, the creditor could, and the key word here is “could”, be required to make restitution of that asset to the bankruptcy estate.

Burt & Associates
Solid Experience. Strong Solutions. Since 1979
Collection Agency Price Quotes

Technorati Tags bankruptcy, burtandassociates

It is always important for today’s credit executives to “look beyond the figures” when evaluating corporate financial statements. Following are some of the areas that credit and financial professionals should be aware of when assessing business credit risk.
First, you should determine whether there are any off-balance-sheet transactions such as operating leases that should be capital leases or capital leases that should be operating leases. Next, determine if there are any hedging strategies in place that may not be actual hedges.  Also, find out if derivatives being used are liquid and whether the company has what are called “naked” positions. Further, determine if any goodwill and intangible valuations are accurate and what assets are being valued and at what price.
Try to see if any large write-offs are in the works. If possible, try to ascertain whether the company is booking future revenue from long-term contracts in current periods. Also make sure to determine if swap transactions overstate revenue but add no realized value.

Burt & Associates
Solid Experience. Strong Solutions. Since 1979
Collection Agency Price Quotes

Technorati Tags burt and associates, credit risk

Many times, slow payment by customers is a result of the way a company extends credit, so it’s important to be aware of ways that poor credit policy can end up exacerbating unpaid customer balances. Following are some internal company situations that can actually cause customers not to pay in a timely manner (analyze your past due accounts with price collection quotes) your accounts receivables. The most important problem is a corporate culture that accepts slow payments as a fact of business life. When credit is provided to a new customer, running a credit check on the new business will be a good measure to know how reliable is paying their invoices. This will show the behavior to pay debt, information like history payments, or if the business have a outstanding debt, this are indicators for a solid credit policy.
Poor management can result in late payments if managers are reluctant to ask for money and pass that attitude down to staff members. Also, everyone will suffer if there is a lack of clear and purposeful company policies.
Also, staff without the right people skills to build relationships will likely be unable to listen and empathize with a customer while at the same time negotiate forcefully according to the rules of the game–that payment is due.
For a Credit Policy contact Burt & Associates.

Technorati Tags business credit, collection debt, credit policy

Options can be settled in 3 ways: you can offset the option, exercise it and take physical delivery or, in some cases, you can cash-settle the option. Offsetting an option involves reversing the original transaction prior to the exercise date. If you bought a call, you have to sell a call. If you sold a call, you have to buy a call. A physical delivery option, which typically applies to stocks, gives the owner the right to receive physical delivery (for a call) and to make physical delivery (for a put) of the underlying stock when the option is exercised. A cash-settled option, which typically applies to index options, gives the owner the right to receive a cash payment based on the difference between the value of the underlying index at the time the option is exercised and the fixed exercise price of the option. The power of options liens in their ramifications can enable you to adjust your position on situations on your favor, if you put your accounts receivables on the table and you fail to step up on the options, your accounts receivables will be lost. For more information on how options can affect your Accounts Receivable,  Commercial Collection firm will gladly help you.

Technorati Tags ACCOUNTS RECEIVABLES, commercial accounts

This post originally from Commercial Collection Blog

Export credit insurance is a form of protection for exporting firms against nonpayment of or refusal of shipments by customers abroad. Further, it can protect exporters from customers who become insolvent.  For firms that are new to exporting, this form of insurance can be especially beneficial.  It permits firms to establish themselves in an overseas market by mitigating certain risks,

while also being able to offer more competitive terms for potential buyers. It should also be noted that export credit insurance can be used as collateral when approaching banks for credit lines or extensions. This letter of credit is also known as a non-performing letter of credit and is usually in force for about one year to allow time for payments based on contractual guidelines. Non-performing letters of credit are often used also as assurance of payment for the buyer in international transactions such as the purchase of services or products. If the seller does not receive payment on time, the letter of credit is cashed on demand by the seller. This letter can be canceled when the terns of the contract have been satisfied on both sides.  Commercial Collection Agency

Technorati Tags letter of credit

The Fair and Accurate Credit Transaction Act, also known as FACTA, is a piece of legislation that aims, in part, at protecting businesses and consumers from thieves that try to steal identity information. FACTA applies to all businesses that maintain, or in some way possess, consumer information for a business purpose. Failing to properly secure and maintain such consumer information can result in substantial fines and class-action litigation, with no statutory limitation, which can hold a company financially responsible for the actual losses to individuals involved. As part of our company philosophy we offer an integral solution we provide information like Business Identity Thief, our Commercial Collection Agency is committed to your business

Technorati Tags business integrity, Commercial Collection, identity theft