Commercial Collections Blog

If you arrive at the situation of the client that is classified in the training situation, it is important that you understand what should and should not do.

You should insist on adequate audit procedures and also ensure that all employees are paid on time. Ensure all withholding taxes are paid and not rely on verbal comprehension. Everything must be in writing (contract). Creditors involved in training situations should also review all loan documents for accuracy and to review decisions of the guarantees provided and the material tracking possible loans. Creditors should also be aware of personal safety and to ensure that all trade creditors are treated with honesty and gave accurate and consistent answers to your questions.

Also, never, never give your opinions about the future. And make sure if you are a creditor, to attend all board meetings. While many other factors and circumstances to consider, these presented above are among the most important, as a creditor must be aware.

Collection Agency B&A
(702) 442-0853
Solid Experience. Strong Solutions. Since 1979

Technorati Tags collection agency, creditors, Creditors Rights

When a bank chooses to not renew a debtor’s credit line, creditors should immediately become proactive and try to find out why.  While the bank may not tell you outright, below are a few suggestions that may give you hints as to the underlying reason.

1: Pull a trade report on the debtor to find out if his payment habits have changed (and check your own company’s payment history with the debtor).  Have payments slowed over the past six months?

2: Request an updated financial statement from the debtor (or if a public company pull the latest one).  If the debtor does not have a current statement you need to find out

For more information contact us
Collection Agency B&A
(305) 735-1910
Solid Experience. Strong Solutions
Since 1979

Technorati Tags business credit, creditors, line of credit

When a lender considers extending a line of credit to a company, one of the items it will look for is a well-prepared business proposal with proper supporting documentation. Besides stating the purpose of the loan and exactly how the money will be used, some additional supporting documents the lender will look for are; resumes of the principals of the business, a repayment schedule that shows the ability to pay back the loan, collateral to secure the loan, business and personal credit scores (a credit score is simply a measure that estimates, based on solid data, the probability of an individual to pay their debts to their lenders) and  business and personal financial statements. This are basic concepts when small or mid-size business are watching when extending line of credit to customers, so when you request a credit line and you are into a position of financial strength, healthy bank rating, good credit score for your business, good cash flow, etc, your chances of being approved is much greater.
Collection Agency B&A
(347) 857-9487
Solid Experience. Strong Solutions
Since 1979

Technorati Tags business credit report, collection agency, Credit Score, creditors

FTC Chairman Jon Leibowitz advised in a December 8, 2010, press release that Congress has announced that all organizations who grant credit are expected to be compliant with the “Red Flags Rule” on December 31, 2010. The Red Flags Rule requires all organizations subject to the legislation to develop a formal written and revisable Identity Theft Prevention Program to detect, prevent and mitigate identity theft, Chairman Leibowitz’s press release stated that

“The Rule doesn’t require any specific practice or procedures. It gives businesses the flexibility to tailor their written ID theft detection program to the nature of the business and the risks it faces. Businesses with a high risk for identity theft may need more robust procedures – like using other information sources to confirm the identity of new customers or incorporating fraud detection software. Groups with a low risk for identity theft may have a more streamlined program – for example, simply having a plan for how they’ll respond if they find out there has been an incident of identity theft involving their business.”

To assist affected organizations, Burt & Associates has developed a comprehensive Red Flags Rule Compliance Program. In addition, Burt & Associates’ program offers a customizable template, as well as an employee training guide, to help your organization towards compliance with this legislation.

Please contact Collection Agency B&A, to find out how this legislation affects your company:

Phone:          877.740.7839 (toll-free)

Email:           jcurtis@burtcollect.com

To view Chairman Leibowitz’s entire press release, please click on: http://www.ftc.gov/opa/2010/12/redflags.shtm

To view a publication released earlier this year by the FTC detailing the Red Flags Rule, click on: http://www.ftc.gov/bcp/edu/pubs/business/idtheft/bus23.pdf

Technorati Tags creditors, FTC Red Flag Rule, red flag rule