Commercial Collections Blog

Many times, slow payment by customers is a result of the way a company extends credit, so it’s important to be aware of ways that poor credit policy can end up exacerbating unpaid bad debt customer balances. Following are some internal company situations that can actually cause customers not to pay in a timely manner. The most important thing is the bad debt culture that accepts slow payments as a fact of business credit. Bad debt 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. Finally, staff without the right commercial collection 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 not let it become past due and become bad debt.

Technorati Tags Commercial Collection, commercial debt, Debt Collection

When your company is involved in exporting, if the documents presented do not conform precisely to the terms of the letter of credit, your company may well have lost its right to receive payment. While your bank can request a waiver from the buyer, if the buyer balks, your company could be out of luck. Therefore, it is essential that you make sure there are no discrepancies between the export documents and the letter of credit. Be sure of obvious things, such as spellings of companies as they appear on the invoice–not as a DBA name which doesn’t appear elsewhere. Find out how long shipping will take. That way you can simply add 21 days as the latest date to present the documents. In addition, you should know the details of the International Commercial Term, as defined by the U.S. Chamber of Commerce, for commercial debt letter of credit, contact us.

Technorati Tags collection agency, Commercial Collection Agency, commercial debt

The debtor in possession in a bankruptcy filing, or the trustee as the case may be, has so-called avoiding powers. These powers may be used to undo a transfer of money or property made during a certain period of time before the bankruptcy petition is filed. By avoiding a particular transfer of property, the debtor in possession can cancel the transaction and force the return or “disgorgement” of the payments or property, which then are available to pay all creditors. Generally, and subject to various conditions, the power to avoid transfers is effective against transfers made by the debtor within a specified period before filing the petition. But transfers to “insiders” (i.e., relatives, general partners, and directors or officers of the debtor) made up to a year before filing can be avoided. In addition, under 11 U.S.C. § 544, the trustee is authorized to avoid transfers under applicable state law, which often provides for longer time periods. Avoiding powers prevent unfair prepetition payments to one creditor at the expense of all other creditors.

Technorati Tags commercial debt

To collect or not  to collect. Is Burt & Associates the answer?

Many times people contact our firm with a commercial debt that is owed to their company. This could be an invoice over due or a contract dispute.

The key to a good working relationship is communication and sometimes that relationship sours due to a lack of speaking clearly.

Once you have tried everything in your companies powers to relieve a burden or debt it is sometimes best to wash your hands of that deal and move into offensive mode.

Burt & Associates has been accused of deceptive trade practices or received complaints from our clients debtors. Why? Because we are the quarterback that is given the call with 8 seconds on the clock on a 4th and 3 on the six yard line during the Superbowl. Visit our Commercial Collection Profile.

We are often the last step before legal action is taken.

Technorati Tags commercial debt