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Collection Industry Statistics

Collection industry statistics show that almost all delinquent accounts will be collected if placed with a debt collection agency within 30 days of the due date. With the economic downturn we have all witnessed this year, time is of the essence if you want to avoid costly write-offs that can lead to closed doors on your own business. Using a collection agency early will help the money get collected faster especially in today’s economy.

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
Ideas on Financial Re-Regulation

Given the dramatic upheaval in the financial sector, the idea of stricter regulation in the industry is back in the air. Further scrutiny is being urged not only for investment banks generally but also for the derivatives markets to try to prevent firms from piling on too much debt and to provide more stability in the market. Both the Federal Reserve and the Securities and Exchange Commission have been sharing regulatory oversight, particularly since the demise of Bear Stearns Cos. in March, when Henry Paulson, the Treasury secretary, argued for the Fed to take a larger role in assuring health in the financial markets. Already the Fed conducts oversight for commercial banks, partly because such banks can access special lending facilities and because the government insures individuals’ bank deposits. On the other hand, as it stands now different regulations apply to brokerage firms because those companies concern big corporate investors rather than individuals. Among proposed changes would be to produce more-standard rules for markets like over-the-counter derivatives and to require more details on who’s trading what with who in complex financial instruments.

The Credit Manager’s Q&A Corner

QUESTION: Explain what a substantive consolidation is.

ANSWER: A substantive consolidation is the combination of the estate of one debtor with the estate of one or more other debtors and the application of the combined estate to satisfy their combined liabilities. Substantive consolidation is often considered (although infrequently applied) in the case of parent/subsidiary debtors and other affiliated entities.

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