Commercial Collections Blog

There are three general stages when control should be exercised when dealing with a high-risk company.

• The first is before delivery in the pre-shipment period, when referral of all incoming orders is required in order to make authorization after scrutiny of existing debt, payment performance and credit ratings.
• Second, during collection work, the degree of control depends on the size of the risk and requires periodic communication. After any unsuccessful collection effort, it is suggested that further deliveries be held up.
• Finally, general risk-reduction, whenever prudent, calls for the need to reduce risk further.  These efforts may include: prepayment of at least part of the debt, shorter payment terms, cash discounts, third-party guarantees, letter-of-credit terms, bills of exchange, offset of payable by written agreement.

Commercial Collection Agency
Tampa FL (813) 200-7667
Solid Experience. Strong Solutions. Since 1979

Technorati Tags Commercial Collection Agency, high risk, risk management

Extending credit to a customer requires careful consideration. Following are some concepts you should embrace when evaluating a debtor.

• Character. Timeliness, which you can implement an action plan for your obligations, how to treat your customers and employees and how to take responsibility are the key features when considering a credit line to a company
• Capacity. Frequency and record of the company’s borrowing activity, payments are made according to terms? How much debt the company can manage and what their financial reasons, all related to the ability of a debtor.
• Capital.  Is the company have a strong commitment with its business entity?. How well capitalized, is the company? These are important questions to ask when considering granting credit
• Conditions. How is the current economic condition of the company and how will face an economic downturn?. Questions any business should ask  when providing credit line to other business at the end you should ask this question “Should I give credit to this company?“
• Collateral. What assets does the company have that they can pledge as collateral? equipment, real estate, including inventory and accounts receivable are just a few assets we have to look in granting credit is based on a credit history less than full payment and financial situation.

Providing credit to customers or business does requires some of the above considerations. Remember that a business credit report also help you to identify  future problems and help you establishing a better debt collection strategy.

Commercial Collection Agency
Phoenix Area (480) 648-5776

Technorati Tags business credit, Commercial Collection Agency, line of credit

The frequency of reported capital outlays over the past six months rose two points to 47 percent of all firms, three points above the 35 year record low. Of those making expenditures, 32 percent reported spending on new equipment (up two points), 16 percent acquired vehicles (up one point),and 12 percent improved or expanded facilities (up two points). Three percent acquired new buildings or land for expansion (down one point) and nine percent spent money for new fixtures and furniture (down one point). Not great, but showing some strengthening tendencies. The percent of owners planning capital outlays in the future fell one point to 18 percent because the environment for capital spending is not good.

Lending for Capital Investment

We have the resources and capability to provide financial support and financing to clients and/or their customers who may have a cash flow problem.  This option is available on a case-by-case basis. For information contact Commercial Collection Agency offices.
Phoenix, Az: 480-648-5776
Los Angeles, Ca: 323-213-9302
Miami, Fl: 305-735-1910
Tampa, Fl: 813-200-7667
Atlanta, Ga: 404-997-8412
Chicago, Il: 312-772-4186
Las Vegas, Nv: 702-442-0853
New York, Ny: 347-857-9487
Houston, Tx: 713-487-6631
Plano, Tx: 469-368-6400
Seattle, Wa: 206-971-1843
Cleveland, Oh: 440-941-6578
Nashville, Tn: 252-220-0325
Toll Free: 1-877-740-7839

Technorati Tags capital spending, Commercial Collection Agency, lending for capital

 An intangible-asset valuation report should have a number of essential characteristics.  First, the report should be thorough and contain relevant data, analysis and a disclosure of the method of valuation. In addition, such a valuation should be objective, pointing out not only the positive but also negative factors that can affect the value of intangible assets. Such a report should make it easy to follow the data under analysis and which kinds of analysis were performed and the valuation conclusions.  Technical jargon should be avoided, but when it is used it should be adequately defined. As in any business writing, an intangible-asset valuation report should logically flow from the data to the analysis and its conclusions and be written clearly, simply and with an adequate number of visual aids. And when the amount of debt accumulated by consumers and business grows in the past years,find out more information on multiple valuation methods, contact our Commercial Collection Agency

Technorati Tags asset valuation, Commercial Collection Agency

Some Helpful Tips For Collecting on Judgments First, bank on the future by creating liens. An important step in any collection plan is to establish liens (legal claims) against the judgment debtor’s real estate and business property. Liens put you in the best position to get paid if the debtor declares bankruptcy or acquires, sells, refinances or transfers property. Second, do your homework. The more you know about the business or person who owes you money, the more likely you are to get paid. So here’s your opportunity to be a private detective of sorts, and keep tabs on the debtor’s assets, lifestyle and projected financial situation. Here’s a little test. Would you know if the debtor moved, expanded or sold a business, or refinanced real estate? Do you know whether or not the debtor cares about their credit rating? Do you know what could pressure the debtor into bankruptcy? If you can’t answer yes to every one of these questions, you’ve got work to do. Periodically write or telephone the person who owes you money. And third, know when to call it quits. You’ve heard the warning, “Don’t throw good money after bad”. There is much you can do to collect a judgment, but these efforts cost money. And although most judgment collection costs are recoverable, that won’t do you any good if you never catch up with the judgment debtor. So keep a sharp eye on how much you are spending on your attempts to collect. If you are looking a collection agency in New York call (347) 857-9487

Technorati Tags collection agency, Commercial Collection Agency, Judgments

Late payment charges have always been an issue among corporate credit and finance executives. Charging customers a penalty for paying their invoices late and the effectiveness of doing so have been topics. Should your company assess a charge to customers that pay late, and what should you call that charge?

In one survey of more than 300 credit and finance executives nearly 40% of those surveyed reported that their company does assess a charge to customers who pay late. While more than 20% of those classify it as an interest charge, nearly 45% call it a service charge. In addition, of those that do charge some sort of fee for late payment on past due accounts, more than 85% reported that they stipulate the late payment fee on their credit applications they have their customers complete. Unfortunately, of those respondents claiming they assess a late fee, nearly 50% reported that they do not strictly adhere to the policy.Accounts that are more than 50% do assess late charges when a customer becomes 30 days past due. Nearly 25% begin to assess the charges when they are less than 10 days past due. For more Commercial Collection information please check out our site, with useful resources and tools.

Technorati Tags Commercial Collection Agency, commercial collections

To create a judgment lien against real property, the judgment creditor typically obtains an Abstract of Judgment from the court that issued the judgment. The Abstract of Judgment lists information about the judgment creditor, the judgment debtor and the amount of the judgment. The judgment creditor then records the Abstract of Judgment with the county recorder in the county where the judgment debtor owns real property. Usually the judgment lien is then satisfied from the sale proceeds when the judgment debtor sells the real property. In the meantime, the judgment creditor has a lien against the property (which in effects secures the payment of the judgment) and the outstanding balance of the judgment increases due to the addition of statutory interest on the amount of the judgment that remains unsatisfied. Most of this concepts are part of commercial collection, if you need more information, please go to Collection Agency by City to find local help.

Technorati Tags Commercial Collection, Commercial Collection Agency

“Real gross domestic product — the output of goods and services produced by labor and property located in the United States – decreased at an annual rate of 6.1 percent in the first quarter of 2009,” according to a the Bureau of
Economic Analysis. A 6.3 percent drop was recorded in the final quarter of 2008.

“It was the third straight quarter of declines and capped the worst six months of economic activity since the late 1950′s,”.
If you have Accounts receivables, recover them with a Commercial Collection Agency, don’t let the economy crisis impact your business, act now.

Technorati Tags ACCOUNTS RECEIVABLES, Commercial Collection, Commercial Collection Agency

Customer Deductions and Inflated Receivables
Customer deductions, whether valid or invalid, can be a nightmare to those who deal with accounts receivables. Often such deductions as freight, pricing and even sales tax can sit on an AR ledger for long periods of time until they are either credited or paid back by the customer. There are dozens of different kinds of deductions that customers take. In fact, numerous surveys have shown that more than 80% of the time deductions are valid and should be credited promptly. Burt & Associates has collection agency software that allow for a quick resolution of these items, yet in other firms (and it often varies by industry not necessarily firm-to-firm) deductions can sit on a company’s books for as long as six months or more. The result? Inflated receivables are turned over for collection to collection agency  in the long run can cost your company money. If a company’s credit line is, even in part, tied to its AR, then the inflation of this current asset could adversely affect the amount that company can draw against–a thought to consider when evaluating your overall Accounts Receivables Management status.

Technorati Tags ACCOUNTS RECEIVABLES, collection agency, Commercial Collection, Commercial Collection Agency

Everyone is familiar with the expression “the squeaky wheel gets the grease.” This is perhaps the most important truism in the world of debt collection.

In the current economic climate, nearly all businesses are experiencing cash flow issues. The frozen credit market has yet to thaw making it even more difficult for small and medium-sized businesses to stay afloat.
As more and more companies find their funds stretched to the limit, they begin to prioritize where the little they have goes. In this situation most businesses will behave like the average consumer and pay the most necessary bills first often letting those they deem less important to slide.

How do you move your invoice from the “less important” to the “most necessary” pile? You have to somehow put your company in the front of your customer’s mind and debt collection calls and/or letters will be added to your staff’s responsibilities.

However, choosing to handle debt collection in-house can be problematic. Chances are your staff will postpone making collections call as long as they can. As the days turn into weeks and the weeks into months, your invoice(s) get buried beneath the avalanche caused by your customer’s cash flow problems.

Adding a debt collection specialist to your staff is not a very cost-effective or efficient answer. It takes time and money you don’t have to bring in and pay someone whose only duty would be to send letter and make debt collection calls.

The best option is to take your past due accounts to a professional debt collection agency.

A reputable debt collection agency will not charge an upfront fee, but will work on a contingency basis taking a percentage (usually 10-20%) of what they actually collect for you.

The best debt collection agencies will have an experienced staff and a plan of action to collect on your past due accounts. Their agents will be well-trained in methods and strategies designed to collect your money in the most effective and efficient manner.

Hiring any new employee can be a challenge. Resumes that have been enhanced or candidates who interview far better than they perform can put you into a cycle of hiring, training, firing, and hiring again, especially if you are trying to fill a position in an area you might not be as well-versed in.

A professional debt collection agency will have supervisors who know the business inside and out. This knowledge helps them identify, screen, and hire those who would be most successful.

There are a number of state and federal laws that address how debt collection activity must be conducted. Failing to adhere to these regulations can lead to your customer filing suit against you. A lost lawsuit will add insult to injury as you will likely have to pay a fine and/or restitution on top of not getting paid what your customer owed.

It can be quite a challenge to keep up with all of the legal aspects of debt collection. However, a professional debt collection agency will be up to date on the current regulations as well as aware of any changes resulting from new legislation or court precedent.

Cash flow problems are rampant in today’s economy. Consequently, most business owners are content to let sleeping dogs lie. Meanwhile, your own cash flow issues are worsened as your DSO increases.

However, by placing your past due accounts with a professional debt collection agency you insure a constant and consistent level of communication with your past due customers. Congratulations! You have just become the squeaky wheel!

Technorati Tags collection agency, Commercial Collection Agency, Debt Collection