Commercial Collections Blog

Why not just continue to write off those bad debts? What hits the bottom line of your costs ultimately requires growth to the top line in sales.  Take a relatively small outstanding debt balance of $3000 and assume, for this example, the company is operating at a 4%profit
margin.  In order to make up for that relatively small write-off, the company must come up with an additional $86,500 in sales. To most businesses, $86 is a significant amount to have to come up with in sales to simply offset a write-off you may not have had to incur in the first place, Let Burt and Associates show you how not to have write offs.

Technorati Tags Bad Debt, burt and associates, business debt

Following are some internal company situations that can actually cause customers not to pay in a timely manner. The most important problem is a corporate culture that accepts slow payments as a fact of business life. 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 negotiate forcefully according to the rules of the game–that payment is due. For Commercial Collections visit our complete solution from information on how you can establish a good credit policy to accounts receivable management.

Technorati Tags Bad Debt, business credit, Debt Collection

The expansion in Q3 GDP (3.5%) shows we have clearly begun to emerge from the trough. But there is still a long way to go, and we still don’t know enough about the sustainability of these recovery signals. The comparatively good Q3 news is largely driven by temporary factors like an uptick in spending? notably through the U.S. government’s “cash for clunkers” car sales subsidy program – as well as an easing in inventory rundowns.

Q4 could bring even faster easing in inventory rundowns that accounts for all GDP growth will fall flat during the holiday season, and exports will recover more slowly than in Q3. Any modest uptick in investments in equipment and software will most likely be offset by continued declines in business debt.

A less powerful inventory boost with no positive offsetting contributors may well limit GDP growth to 1 percent in early 2010.  forecast growth to improve only moderately, to around 2 percent, by the middle of 2010. The savings rate will remain relatively high at 4.5 to 5 percent of disposable income, dampening improvements in spending, investment and commercial trade

Technorati Tags Bad Debt

Todays economy makes current financial  information for each customer a necessary component of credit  risk  management. When a customer begins to pay slowly or not at all you need an immediate update on their financial condition. The deterioration of financials  can be extremely fast today. Do not wait to get reports on your customers and act on the information. Waiting to pursue collections can put you at he back of a long list and even put your claim into a bankrutpcy situation. Debt management needs to be assertive, constant and unbiased towards all of your accounts. Burt and Associates will risk score your accounts using a propritarty Burt Risk Scoring System that will give you the odds of collection based on factors that we have learned over the last 30 years in the commercial debt collection business. Your sucesses will increase and your cash flow will increase.

Technorati Tags Bad Debt, business, collection, commercial, receivables, recovery

• Get your oldest bad accounts and place them with your partner commercial collection agency.
• Get your next oldest group and put a hold on their future orders. Get aggressive with your collection manager and ask for weekly updates.
• Use all available personnel to initiate contact with your delinquent accounts.
• Get reports on the finances of your higher accounts receivables prior to their bankruptcy.
• No stone left unturned when collections are at stake.

Technorati Tags Bad Debt, collection, commercial

In the economic climate that we are in today, debt collection methods have to continually evolve with the times. Information about the debtor is mandatory for you to push past all the stories and false agreements. The decision to pursue your own money has to be one of dedication to the task and willingness to push aside sales fears of loss of the customer. The account that does not respond to your first written appeal for payment is not going to react as they should. A series of letters and phone calls will not get your cash in as planned in todays market. Put your pens aside and call in the professional at Burt and Associates.

Technorati Tags agency, Bad Debt, business, collection, commercial

• Ignore them.
• Send another invoice.
• Make another phone call.
• Send another reminder.
• Send a letter of demand.
• Call someone else in the company.
• Have someone else from your company call
• Track them down when their phone is disconnected.
• Look for them when your letters are returned.
• Hope.
• Call us today at 1-469-368-6400

Technorati Tags agency, Bad Debt, business, collection, commercial, debt, receivables

When new sales are a bit flat and your cash flow is tight you can improve your cash situation with a harvest of your past due accounts. A review of all delinquent accounts is always a surprise and a bit of a downer. There are always accounts receivables on the list that you see as some of your best customers and also some new accounts as well. The decision to press harder on the accounts is a sales issue and a cash issue at the same time. The correct answer is hard to come by unless your credit policy is tight and uniform. Treat all your customers with respect and follow your own credit policies without exception.

Contact all you past due accounts and stay in touch weekly until their account is up to date. Some accounts will need to be put on credit management awaiting payment and you should have your limits in place so that the decision is relatiely easy. Do not wait forever to get your commercial collection agency involved because collection is their expertise and you can stay fixed on the newer past due accounts

Technorati Tags agency, Bad Debt, business, collection, commercial, debt, receivables, recovery

1. Make sure you process clean, accurate, timely claims.
2. Make sure you have the correct terms on the claim.
3. Followup at thirty days and speak with an agent of the company -keep notes.
4. Send a formal letter at 45 days asking for payment.
5. At 60 days either put the claim out to a professional debt collection agency or file a claim with your attorney.
6. Continue the contact with your agency of choice and let them do their work.

Technorati Tags Bad Debt, business, collection, debt

When your accounts receivables grow, your profits suffer, your cash flow is strained, your patience wears thin and you need cash, go to the source of your problems. The growing accounts receivables is the issue of the day. Allowing  a few customers to fall way behind and just not pay, will cause a much deeper problem and cause your business to suffer damage. The process of debt collection is one of a precise plan and understanding of the debts and the debtor involved. After the original futile trials of collection, go to the professional debt collectoion agency for assistance, they can get your cash in the door and put you back in a positve cash flow direction.

Technorati Tags Bad Debt, business, receivables, recovery