Commercial Collections Blog

Discounts can be beneficial to both the seller and buyer under certain circumstances. One of the primary reasons for the seller to offer discounts for early payment are the relative financing costs of accounts receivable that are saved by the seller for early payment versus the cost of early settlement discounts. Another primary reason relates to the degree of the sellers need for early payments due to the company’s cash flow requirements. Offering cash discounts for early payment however, has its down sides, such as noting that debtors have a tendency to take the discounts whether they qualify for them or not. Collecting on these “unqualified” discount deductions can then become a headache and, if let go, eventually unnecessarily inflate receivables, which could cause borrowing rates to increase if overall deductions get out of hand. Other topic you would like to know is the accounts receivables aging schedule, use one of our tools Business Debt Recovery Chart

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Learning to choose a collection agency or commercial collection agency,  starts with understanding what is the nature of the collection industry. Let say that you have been sending invoices and you are having trouble getting people to pay you.  If so, you need the service of a collection agency. When collecting business to business you need a commercial collection agency that knows and understands the nature of  business owners.  A Commercial Collection service takes the place of your business and starts collecting your past due accounts. Through a commercial  collection agency, you can ensure you are paid on goods and services provided to customers. So if your company is chasing debtors, don’t waste your energy and resources,  let a collection agency do the work for you, while you get back on track. When you need a commercial collection agency in Miami contact them at (305) 735-1910

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As credit/finance executives, we know that sometimes it may be necessary to contract with a collection agency to help collect past due accounts. While in general it is useful to resort to a collection agency when a debt falls 90 or 120 days past due, some companies may want to consider an outside agency as early as 60 days past due. It is essential to use an agency that is effective and that uses professional collection techniques. You should not only consider a collection agency’s references and experience but you should also request a “hold harmless” agreement from the agency that will release your company from liability in the collection process. You should also make certain that the agency is sufficiently bonded. There are things to consider when talking about commercial collections, like knowing how the accounts receivables aging schedule or the interactive business debt recovery chart

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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. For cash flow management, talk with one of our representatives, or contact us via www.burtcollect.com

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In Monday’s, 11/2/09, issue we reported that enforcement of “Red Flags” Rule would take affect this week and that credit department heads should heed the rule, which requires any firm extending credit to have an “identity theft plan” in place. The Federal Trade Commission, in charge of implementing enforcement of the new rule, has once again announced another last-minute delay of enforcement. This fourth delay by the federal agency comes after a federal court ruled the FTC could not make the rule stick amongst attorneys and after a bill, passed by the House, which could allow for exemptions for certain industries. Will this affects a Commercial Collection Agency?

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New law will end some annoying robo calls
(Associated Press)

Americans tired of having their dinners interrupted by phone calls touting car warranties or vacation packages will soon get some relief.

The Federal Trade Commission is banning many types of prerecorded telemarketing solicitations, known as robo-calls. Currently, consumers must specifically join a do-not-call list to avoid them. Starting Sept. 1, telemarketers will first need written permission from the customer to make such calls.

“American consumers have made it crystal-clear that few things annoy them more than the billions of commercial telemarketing robo-calls they receive every year,” said Jon Leibowitz, FTC chairman.

Violators will face penalties of up to $16,000 per call.

Don’t expect phone solicitations to disappear completely, though.
Calls that are not trying to sell goods and services to consumers will be exempt, such as those that provide information like flight cancellations and delivery notices and those from debt collectors.

Other calls not covered include those from politicians, charities that contact consumers directly, banks, insurers, phone companies, surveys and certain healthcare messages such as prescription notifications. The FTC said those don’t fall under its jurisdiction. And calls made by humans rather than automated systems will still be allowed, unless the phone number is on the National Do Not Call Registry.

But the FTC said the ban should cover most robo-calls, forcing marketers to turn to more expensive live calls, or ramp up efforts in direct mail, e-mail and TV ads.

“It’s about time,” says debt collector Jerry Curtis. “The unethical practices of telemarketers makes it tough for everyone who makes their living on the phone. I’m thrilled that they’re cracking down on robo-calls. I get them myself and it seems like they all come while I’m trying to have supper.” We have been trying to raise the bar for years on the commercial collection industry and our employees follow the guidelines of the commercial code.

Best Regards,

Jerry Curtis

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