Commercial Collections Blog

The most obvious choice of what account to turn over to a commercial debt collection agency is the oldest  account with the most bad debt.   However the account that is just past 30 days may be the best account to place if they go bankrupt while you wait and while you are chasing the very old accounts. You must do risk analysis on all accounts at 30, 60,90,120, days to keep curent on the accounts to place. Burt Risk Scores can save you time and money.

The goal for reviewing accounts past due is to isolate the accounts who are not going to pay and create a program that forces the issue with that account. Waiting for the demand calls and letters to work on this type of account will get you nowhere and produce nothing tangible, as in cash. Call Burt Collect and get your money.

Technorati Tags Bad Debt, cash, commercial, debt, receivables, recovery

• If you wait too long it can be 100%
• If you wait too long you may not find a company to collect from
• % of collection is as important as collection fee %
• Time is money
• Cash is king
• Protect your investment, get your money so that you can pay your own bills
• Get collection help on the most difficult accounts
• Be aggressive early waiting is not good in this business environment 

Technorati Tags collection, commercial, receivables, recovery

1. It is relatively easy to outsource your bad debt accounts.
2. It is much more difficult to pick the correct commercial debt collection agency that will become your collection partner.
3. Accredidations, memberships, tenure, web site, bonded, company articles and certifications, referrals, online data tracking reports, certifications are extremely important check points for your search.
4. Personal contact with executive in the selected company will get you a better service and a person to go to when things need to be straightened out.
5. Collection rate is important but the % of collection is just as important, the real cost is the uncollected portion.

Technorati Tags agency, Bad Debt, business, collection, commercial, debt, receivables, recovery

1. The client is just running from you as fast as he can and the traditional methods of getting paid just are not enough to get you paid.
2. The phone is turned off and the mail comes back to you and the email is rejected, that is not the end of the line for Burt and Associates
3. You can do a  credit review and spend more time and money and still not be able to contact the customer. We will find the account and get your money.

Technorati Tags agency, collection, commercial, debt, letters, receivables, writing

Keeping your bottom line solid is more  important to you than allowing those few non paying customers to stay on the books.

Cash allows you to keep your employees and business operating not hanging on to broken promises from a couple of bad apples in your customer list.

Use the extra cash you collect to install a better credit policy.

Be cautious with new and older customers, set limits and be prepared for difficult collection efforts, by your staff or by your selected outside collection agency.

Choose yourcommercial debt collection agency before the problem arises and get them involved earlier than you have in the past, the collection wars are under way.

Technorati Tags Add new tag, agency, Bad Debt, business, cash, collection, commercial, debt, receivables

1. Review debtor orders, payment history, communications,current status,ability to make contact,effort being made by customer, risk assessment
2. Review staff efforts, review all potential tracks to be followed, be demanding and do not back down, set date to be paid or change course
3. Move the debt to a professional debt collection agency, you are being victimized by a professional non payer and you need help

Technorati Tags Add new tag, agency, cash, collection, commercial, debt, receivables, recovery, risk

1. The hardest thing about hiring a commercial collection agency is the timing. For the most part the rule of thumb is 90 days.
2. When the customer has many past due accounts rather than one large one.
3. If and when the customers phone is discontinued, waste no time contact your agency partner.
4. Do not let other delaying tactics such as continually asking for documentation, playing dumb, change of contact person to reset the denials of debt.

Technorati Tags Add new tag, agency, business, collection, debt, receivables

1. Join trade reports, newsletters, and web sites for industry updates
2. Implement a strong Credit Application
3. Create a risk screening process prior to credit initiation, with credit limits
4. Track order and payment history
5. Institute timely notice of past due accounts
6. Know the steps to be initiated when account is past due
7. Set trigger points for past due letter and phone notification
8. Know when to use outside collection agency, time is money
9. Hold future orders and use prepayment until payment is finalized

Technorati Tags accounts, Add new tag, agency, Bad Debt, business, collection, commercial, debt, policies, receivables