Commercial Collections Blog

As our economy continues to slide do you continually set credit limits on your customers and how often do you review your accounts and their balances.

A review of your largest accounts and their month over month balances can shed light on the growing account balance and predict debt collection difficulties.

It is also true that many smaller accounts with increasing balances will add up to a very substantial portion of your DSO. No system is perfect and a good review of all accounts over 30 days will keep you up to date and ready to react to data on each customer.

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• What % of your invoices are disputed and used as a reason not to pay?
• Do you have a invoice resolution process in writing for customers and your staff?
• Are your payment terms set up correctly for each customer?
• Is your staff able to get new invoices created when errors occur?
• Are you linked to your Finance Department?
• Who makes the call on placing an account with a outside debt collection agency?
• Is your DSO increasing due to bad invoicing or non paying accounts or a combination?

Technorati Tags business, collection, commercial, receivables

When your past due accounts offer to settle the claim for 25% does the account want to give you back 75% of your goods or services? Of course not, this  is time to get all your invoice paid.  Setting a president of low settlements does not help you collect  next time and puts you at risk with this company over and over again.

When you need your cash stay commited to full collections and do not let the emotion of getting a settlement cloud your judgement.

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• It is more difficult in todays business environment to have business debts collected than ever before.
• It takes resources away from new account billing and collections.
• It may be cost justified by a true cost analysis based on fully burdened internal costs and the external cost.
• It may be of equal cost but the money may come in sooner resulting in better cash flow.
• You may get savings from the change and your freed up staff can get in touch with all the newer delinquent accounts and not let them slide into the not collectable code.

Technorati Tags business, collection, commercial, debt, recovery

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