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SAS70 Certified Commercial Collections

Businesses that sell goods and services on credit must handle accounts receivable. Inevitably, those businesses granting credit must decide what to do with past-due accounts. Today, I’m going to conclude my series on the importance of partnering with Burt & Associates for all your commercial collection needs.

I have shared with you what Burt & Associates can do for you, how to feel comfortable when it comes to partnering with Burt & Associates and why it is important for you to share your collection issues with us. In this final installment, I want to help you understand the importance of contacting Burt & Associates early on in your delinquencies and why the earlier you contact us, the better.

One thing for you to always keep in mind is when it comes to commercial collections; prompt intervention will significantly improve the chances of collectibility. Most companies will only turn to a collection agency once their delinquent accounts reach 180 days. This could prove to be too late. Once your account hits day-91, you are 30% less likely to collect on it and the percentage of recovery drops as time passes.

Being an SAS70 certified company, Burt & Associates will take an experienced and professional approach to collecting your delinquent debt, no matter how delinquent it is. However, the sooner you contact us about your commercial collection needs, the better.

We are ready and waiting for you to make that call. Let us help you accomplish all your goals. Give me a call to get going!

With warmest regards,

Jerry Curtis
President & CEO

P.S. In the coming weeks, I’ll start sharing with you how you could win a trip for 2 to Las Vegas courtesy of Burt & Associates.

Educational Tidbits For Today’s Credit Executive
Bankruptcy Filings Drop Dramatically in 2006

The Administrative Office of the U.S. Courts said that U.S. bankruptcy filings plummeted 70% last year, to the lowest level in nearly two decades. Following the introduction of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) late in 2005, the total number of bankruptcy filings for calendar 2006 sank to just under 618,000 cases. Consumer bankruptcies, the main target of BAPCPA, sank 71%, to about 598,000 cases. Part of the precipitous drop in filings in 2006, however,was due to a sharp increase in bankruptcy filings in 2005 in anticipation of the passage of BAPCPA. The good news may not be long lasting however, with high debt plaguing the housing sector, it’s expected that consumer bankruptcy filings will start increasing again by the end of this year.

The Credit Manager’s Q&A Corner
Question: Explain priority classes among creditors in a Chapter 11 bankruptcy.
Answer: In order to determine which claims will receive priority, priority classes are established. Administrative expenses are in the first priority class, followed by wages, salaries and commissions, contributions to employee-benefit plans and certain taxes. General unsecured creditors are often at the bottom of the priority list.