In the last few months, the infamous Ponzi scheme gained the limelight once again, notably with the revelations of a huge fraud perpetrated by Bernie Madoff, now behind bars. A Ponzi scheme, in its simplest form gets you to allow the collection company to contract for a service then collects and keeps the money in a foreign country where you can not get to it.

Once the business is shown to have been a Ponzi scheme, the company has paid your claim and you are not getting the money no matter what you do, the real collection company has all the necessary credentials necessary to alleviate your fears and get the job done.

Watch out for the collection company with the fast new story and the low rate because they just may not be for real and your money may end up in a foreign country and be gone for good.

Technorati Tags cash flow problems

We have just finished writing six business forms that will save your company money and time when it comes to setting up a business relationship with your customers.

These six forms walk you through the most common problems encountered when setting up a new business relationship, shows you what to look for and gives you shortcuts for easy use. The forms are set up so that you simply fill in your own company’s information.

Again, these are Free, all you have to do is click here and fill in your contact information. You will receive a confirmation e-mail so that we may send you the free information. Just click the link in the e-mail to confirm your request and you will receive your free download within 1-2 minutes via e-mail.

Best of Success with your Collections,

Jerry Curtis
President & CEO
www.burtcollect.com/
469-368-6410
jerrycurtis@burtcollect.com

PS: ALSO UNLIMITED COLLECTION QUESTIONS TO:
MARY FISSELL
469-368-6400 EXT 220
MANAGEMENT ANALYST
mfissell@burtcollect.com

Technorati Tags commercial collections

I just wanted to let you know that our Collections Staff has finished writing two convenient guides for solving Collection problems, and I’ll be happy to send you a Free copy if you reply back.

“The Complete Guide to Solving Collection Problems” (250K) is a relatively comprehensive, 10 page manual that walks you through the most common problems in setting up a collection system, and tells you what to look for, gives you a lot of shortcuts, and shows you how to solve those problems fast.

And, our “Collection Trouble Shooting Cheat Sheet” is a handy, 1-page summary of the 10-page guide (100k). (This one will probably do the trick for you 80% of the time.)

Again, these are Free, all you have to do is reply to this email and I’ll send you one or both.

Best of Success with your Collections,

Jerry Curtis

jerrycurtis@burtcollect.com
469-368-6410

PS: ALSO UNLIMITED COLLECTION QUESTIONS TO OUR

VERY LOVLEY MARY FISSELL 469-368-6400 EXT 220

MANAGEMENT ANALYST mfissell@burtcollect.com

Technorati Tags commercial collections

With another month gone, the cold weather is fast approaching, and so is the end of the year. when the financial finance and accounting, the bad debt is the portion of receivables that can not be collected, usually from accounts receivable or loans. At the end of the year you will not want to be left with remaining outstanding receivables, you will want them collected. Give the professionals at Burt and Associates a call and we will get those receivable collected before the holidays arrive.

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

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Earn Your Green Certification – Business owners who want to make their companies environmentally friendly have numerous resources they can use.

Green Seal sets environmental standards for products such as paints, stains and coatings, paper towels and napkins, even residential cleaning services. Those products that succeed in reaching those standards are certified and listed on their Web site.

Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy to identify efficient products and practices. Its consultants examine the manufacturing and assembly process and use of components.

Is Your Bank Stable? Use the FDIC’s Bank Find page to locate the bank and then click to review your banks’ financial reports.

Educational Tidbits For Today’s Credit Executive

A Few Ways to Protect Your Company’s Trade Receivables

In these uncertain economic times, it has never been more important to protect your company’s assets. One of those assets is trade receivables. Whether growing your firm internationally or just protecting your AR, there are a number of ways to make certain those receivables are handled efficiently. Irrevocable or even standby letters of credit certainly are a few ways to reduce the chances of not getting paid according to terms. Making certain your collection practices, and that means followup policies, are carried out in a timely manner certainly will reduce your company’s DSO. Obtaining credit insurance is a great way to protect your receivables as well. And of course, developing a sound relationship with a bonded and reliable third-party collection service is almost a necessity in today’s economic times.

The Credit Manager’s Q&A Corner

QUESTION: Explain the first creditors’ meeting in a bankruptcy case as a discovery device.

ANSWER: After a company files for bankruptcy protection, the first chance that creditors get to ask questions of the debtor under oath is at the creditors’ 341 meeting. This meeting takes place between twenty and forty days after the filing and the debtor’s presence at the meeting is mandatory. Creditors then have wide scope for asking questions, which can be about the debtor’s assets and liabilities or any issue that could affect the administration of the estate or other matters.

Technorati Tags ACCOUNTS RECEIVABLES, Bad Debt

The end of the year is fast approaching and your delinquencies may be up but you see no hope in collecting the money that is due. Then the delinquent customer who was paying files for bankruptcy and other creditors that the customer owes money to are demanding payments as well. You may wonder what hope you have left to collect your outstanding receivables once the bankruptcy is filed. By working with the financially troubled customer you may be able to obtain a partial or full payment. However, many customers will do whatever possible to avoid paying their delinquent account and you are left with the decision to take serious action. Turning over a past due account to a collections agency will result in the rapid collection of the past due balance and will eliminate the frustration and hassle of collecting from the customer .

Burt & Associates is a SAS-70 Type II certified, SAS70 compliant commercial collection agency and we are here to assist you with your business receivables management needs.

Regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
Changing Management During a Bankruptcy Filing

The feasibility of changing management of a bankrupt firm depends somewhat on the size of the company. Many, perhaps most, small companies that file Chapter 11 would probably collapse without current management because of their personal contacts, etc. Particularly for smaller firms, creditors could find it hard or unwise to demand a management change. But larger businesses that file for bankruptcy protection often can continue without current management. In fact, creditors may want to think about replacing existing managers unless the managers who had brought the firm into bankruptcy have already been replaced.

The Credit Manager’s Q&A Corner

QUESTION: Explain the term “adequate protection”.

ANSWER: Adequate protection is the right of a party with an interest in the debtor’s property (such as a secured creditor) to assurance that its interest will not be diminished during the bankruptcy proceedings.

Remembering this seventh anniversary of the 9/11 terrorism attacks on the World Trade Center in New York and the Pentagon in Washington, thoughts and prayers the world over are turning to that fateful morning in 2001.

We will never forget. As time goes on, and, we are left with the memory of the victims, families and heroes of 9/11, Burt & Associates, our staff and our clients take a moment to remember the sacrifices of that day.

Burt & Associates is a SAS-70 certified, commercial collection agency and we are here to assist you with your business receivables management needs.

Regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
A Constitutional Flaw Is Cited In the 2005 Bankruptcy Overhaul

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), the most recent broad overhaul of the U.S. Bankruptcy Code, took a legal hit when an appeals court ruled that one of its provisions violated lawyers’ rights to free speech. The three-year-old BAPCPA contains a clause that blocks attorneys from advising their clients to assume more debt before they file for bankruptcy protection. The court, saying that there are situations where it may be beneficial for both the debtor and creditors, for the debtor to assume more debt when headed for bankruptcy court, said that lawyers have the right to advise their clients about the most advantageous way to organize their affairs while facing bankruptcy. For example, it may be good for the debtor to assume debt by buying a car so that the debtor can commute to work, collect a paycheck and pay back debt. In another kind of situation, a client could seek to refinance a home mortgage to arrange for lower monthly payments or otherwise free up cash for debt repayment. Being prevented from providing clients with such options, the court ruled, blocks debtors’ attorneys from providing potentially sound financial advice.

The Credit Manager’s Q&A Corner

QUESTION: Explain what the bankruptcy estate is.

ANSWER: The bankruptcy estate, generally, is the property of the debtor that is subject to the jurisdiction of the bankruptcy court.

Many ask the question “why should I use a third party collection agency?”

Using a third party collection agency creates a buffer between you and your customer, preventing charged up emotions from damaging your business relationship. Your time can be spent on income-generating tasks because your collections are being handled by the collection agency. This allows you to focus on growing your business and servicing your clients while the collection agency deals with your debtors and maximizes your debt collection results. Debt collectors also have specific experience in dealing with non-paying customers. This allows them to be objective and level headed in dealing with your debtors in a professional manner because they are emotionally detached from the customer.

Contact your National Sales Representative today and get started on the path to recovering your cash flow momentum.

With warmest regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
Statutes of Limitations When Collecting On a Past Due Account

The statute of limitations concerns the amount of time within which a legal remedy may be brought. In the case of the collection of a debt, many statutes of limitations are set by individual states and may vary considerably based on the type of contract. For example, the limitation on a judgment may be longer than one involving open or revolving accounts. It should be noted that the statute of limitations can often be revived with either a partial payment or a written promise to pay.
A debt collector isn’t bound by a statue of limitations when requesting payment on a debt. However, the debt collector may violate provisions of the federal Fair Debt Collection Practices Act when threatening to take legal action when the debt has gone beyond the statutory time limit. Some consumer lawyers have been arguing recently that attempting to collect on a debt after the statue of limitations has expired is a misrepresentation of the legal status of the debt, and, as a result, is a violation of the Fair Debt Collection Practices Act.

The Credit Manager’s Q&A Corner

QUESTION: Explain the Bankruptcy Amendments of 1984

ANSWER: The Bankruptcy Amendments of 1984 was a set of amendments to the Bankruptcy Reform Act of 1978. The Amendments contain a number of provisions including: limiting the jurisdiction of the bankruptcy court, limiting the right of companies to invalidate labor contracts while in bankruptcy and providing for the prevention of “substantial abuse.”

Many ask the question “why should I use a third party collection agency?”

Using a third party collection agency creates a buffer between you and your customer, preventing charged up emotions from damaging your business relationship. Your time can be spent on income-generating tasks because your collections are being handled by the collection agency. This allows you to focus on growing your business and servicing your clients while the collection agency deals with your debtors and maximizes your debt collection results. Debt collectors also have specific experience in dealing with non-paying customers. This allows them to be objective and level headed in dealing with your debtors in a professional manner because they are emotionally detached from the customer.

Contact your National Sales Representative today and get started on the path to recovering your cash flow momentum.

With warmest regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
Strategies for Unsecured Creditors: When a Chapter 11 Debtor Won’t Cooperate

Communication is imperative in a Chapter 11 bankruptcy between unsecured creditors and the debtor. When a debtor refuses to cooperate, however, the creditors do have a number of remedies. They can join any efforts of secured creditors, even if it includes forcing the closing of the business. Unsecured creditors can attempt to shift the expense of any tactics to the debtor by working through representatives whose fees can be taxed as expenses of administration. Unsecured creditors can attack preferences and transfers, as well as priorities, using the right of committee to sue in the name of the debtor if the bankrupt firm fails to file suit on behalf of the estate.

The Credit Manager’s Q&A Corner

QUESTION: Explain some ways in which small firms can better weather a credit crunch.

ANSWER: As banks have been tightening their lending conditions, the credit crunch could be spreading to small businesses, which will find it harder to arrange loans, in contrast to relatively easy credit terms in recent years. Some banks say that some small businesses are falling behind on their payments. So in the current credit situation, some small companies should start thinking about how to protect themselves from the effects of the credit crunch on their ability to arrange loans. Some small companies may have to be prepared to put up personal assets as collateral, which could make a big difference for some smaller firms in their efforts to arrange financing. Small companies can also look for lenders that specialize in programs that target specific types of businesses or certain industries. Further, if companies look for community banks and credit unions they may find lenders that know the local market and economy better than larger lenders.

Depreciation is a silent destroyer of the profit margins of most businesses. The key to any type of successful collections, be it in-house or third party, is tightening and shortening the process, then forwarding the account out to the collection agency before 60 days. If you choose to wait longer you are depreciating most of your chance of ever getting your money. A common mistake most businesses make is to wait over 6 months to use a collection agency.

Strong commercial collection demands are sometimes necessary. In these situations, using verbal demands from highly skilled commercial collection agencies, can motivate difficult business debtors to pay you what you are owed. The best time to hire a collection is yesterday!

So, if you adopt the start early, recover more mentality – you will always recover more of your accounts receivable.

Burt & Associates is a recognized leader in commercial collections with the knowledge and expertise in management of accounts receivables. In addition, we use the power of technology to generate results for your business efficiently and quickly. We also meet the stringent SAS70 Type II best practices certification requirements.

Don’t wait another day!

With warmest regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
Would Carmakers File for Bankruptcy Protection?

According to some analysts, despite fears that at least one of the U.S.’s automakers is under enough pressure to prompt a bankruptcy filing, General Motors Corp., Ford Motor Co. and Chrysler LLC may be slower to file for bankruptcy protection than their automotive suppliers were. While suppliers of automotive parts have been able to reorganize under Chapter 11, for carmakers a Chapter 11 filing would be a difficult option. As such, they would have to work hard to find every possible alternative to filing for bankruptcy protection. One big risk in the bankruptcy route is that a bankruptcy filing by a carmaker would likely scare off potential car buyers. Further, while some companies including auto-parts makers have used Chapter 11 to wring concessions from unions, it’s not clear to experts that a bankruptcy filing would similarly help carmakers break out of earlier union agreements or win further concessions.

Questions & Answers

Question: Explain who a fee examiner is.

Answer: A fee examiner is a person appointed by the court to monitor fees paid to professionals in bankruptcy cases.

As we move through the steps of partnering with Burt & Associates for all your commercial collection needs, I am going to talk a little bit about trust. We know that partnering with a 3rd party service provider can be a little intimidating. You aren’t sure who you can and can’t trust in the business world, and I’m here to tell you that you we will earn your trust from day one.

As a partner of Burt & Associates, we want to help you get the most of your business and to do that, we must completely earn your trust. We take the time and effort to sit down with you and get to know all the aspects of your business and what is most important to you. With our focused attention on your commercial collections and our specialized skill sets, we will help you recover all the money that is owed to you. As an SAS 70 certified company, we stand behind all of our processes and want you to feel as comfortable as possible in our relationship.

Call me right now! I’ll get you all the information you need on Burt & Associates and how we can make a difference in your commercial collection issues.

With warmest regards,

Jerry Curtis
Presiden & 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.Need assistance in developing an efficient and effective collection policy? Call 1-800-755-7111.

The Credit Manager’s Q&A Corner

Question: Explain the meaning of “substantive consolidation”.

Answer: “Substantive consolidation” is the estate of one debtor and the estate of one or more other debtors combined. The combined estate is applied to satisfy the debtors’ combined liabilities. Although applied infrequently, it is considered in a case of parent/subsidiary debtors and other affiliated entities.