Commercial Collections Blog

Debt Collectors

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
A Look at Projecting Cash Inflows

Projecting cash receipts for your cash flow budget involves recognizing the cash inflows from a sales forecast. If your business only accepts cash sales, then your projected cash receipts will equal the amount of sales predicted in the sales forecast. Projecting cash receipts is a little more involved if your business extends credit to its customers and deals with accounts receivable. If this is the case, you must take into account the collection of accounts receivable and the timing effect that collection has on the projection of your cash receipts. Applying your accounts receivable collection pattern from the past to your sales forecast is the best way to predict your cash receipts from the collection of accounts receivable.

The Credit Manager’s Q&A Corner

QUESTION: Discuss the issue of attorney-client privilege in a bankruptcy case.

ANSWER: Under federal common law, attorney-client privilege is both subjective and objective. While the privilege applies to communications that are made in confidence by the client in the course of seeking legal advice from a lawyer in his or her capacity as advisor, it applies only when invoked by the client and is not waived. As such, a document is not rendered privileged simply because it is sent to an attorney. With this in mind it is important to note that the attorney-client privilege is determined on a document by document basis and any blanket claim of attorney-client privilege is insufficient as determined in the United States vs. White in the seventh circuit court.