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How to Collect Debt - 7 Deadly Mistakes
 

How to Collect Debt - 7 Deadly Mistakes

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http://www.burtcollect.com/ ...

http://www.burtcollect.com/
This is a guide for Businesses for any business debt related topics from; cash flow, accounts receivables, credit policies, bankruptcy and more. How to identify that you need a commercial collection agency, or just simply a collection agency, collection state laws, federal collection laws and more.

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    How to Collect Debt - 7 Deadly Mistakes How to Collect Debt - 7 Deadly Mistakes Presentation Transcript

    • Published by: Burt & Associates http://www.burtcollect.com/ The 7 Deadly Mistakes Companies Make When Try to Collect on Business Debit in a Bad Economy
    • Introduction In a challenging economy, much as we find ourselves now, even the most stable of companies can have cash flow challenges. Often, by the time a company realizes its account receivables are past 30 days, it may often be too late to effectively collect a majority of the monies owed. For that reason, and more, it’s helpful to know what to do and when. If only companies had a time-tested, proven “Collections Checklist” so they could stay on track and have the ability to respond quickly as the situation evolves. That’s why we prepared this special report. For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Introducion All so you’ll be armed with useful, practical, easy to implement advice from experienced experts in Commercial Collection . Here are the seven mistakes nearly every company, no matter their size, makes when attempting to collect on past due commercial debt For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Mistake #1: Failure to Pre-Screen the Customer Properly Think back before the past due company became a customer, Ask yourself… Were they a good fit in the first place? Did your sales people overrule your financial folks on doing business with that company? If so, were those reasons legitimate? Then again, was an exception made in the due diligence you undertake when evaluating a company’s financials? Obviously, the best way to avoid a collections mistake is to correct it before it happens. One way you do that is to maintain standards on who passes the “ do business with us test ” and who ultimately fails For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Mistake #1: Failure to Pre-Screen the Customer Properly You don't want to end up with this types of customers. From Collection of Debt Collection of Debt
    • Mistake #2: Bending the Rules on the Credit Application Credit reports have clearly defined guidelines on where companies fall on the “good to bad ” credit history timeline. The question is this: Did you set objective, consistent standards on who passed and who failed, or did you make an exception here or there? The idea of thinking of a customer’s best interests is admirable but not if it puts you in a compromising position when it comes to collecting on what they owe in a timely manner A good ongoing best practice is to closely monitor the rules you adhere to credit applications and only modify them as they make sense from all angles, not just in a desire to work with a company that can be closed as a customer and put up as a win for the sales department. For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Mistake #3: Failure to Review and Update Internal Collection Processes Collection process management should never follow a “set it and forget it” mentality. As the economy changes, and especially when it’s sinking, internal collection processes need to be reviewed and updated. A recommended step is having a defined credit and collection policy. This policy should include the following: A good ongoing best practice is to closely monitor the rules you adhere to credit applications and only modify them as they make sense from all angles, not just in a desire to work with a company that can be closed as a customer and put up as a win for the sales department.  Payment terms  Payment arrangement guidelines  Forms of acceptable payment For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Mistake #4: Not Following State and Federal Collection Laws (and Applicable State Precedents) Picture this: not only are you out the money that needs to be collected but —surprise— now you’ve got a lawsuit dropped right in your lap. While following state and federal collection laws seems like an obvious no-brainer, it’s on this list for a reason. Laws sometimes vary by state. In addition, state collection laws detail specific credit collection practices and how they should be followed. For your benefit and convenience, we’ve prepared a comprehensive list of state collection laws you can access here: Summary of Colle ction Laws For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Mistake #4: Not Following State and Federal Collection Laws (and Applicable State Precedents) Once on that page, you can review key criteria by state. It does not reflect Federal Statutes, and it may not reflect amendments to the laws of all states. The chart should not be construed as legal advice and readers should not act upon the information contained in it without professional counsel For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Mistake #5:Lack of a ConsistentFollow-up Processon Past DueAccounts When it comes to collections, is your procedure personality or system-based? If it’s personality-based, that means you’re relying on how certain individuals at the company handle the situation. Problem is, if those individuals leave or aren’t available, your company is already playing from behind and not nearly as effective as it could be A follow-up process that’s system-based features a consistent set of operating procedures that clearly spells out what happens and when. Additionally, say your company does follow-up, is that approach consistent or is more scattershot? For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Mistake #6: Waiting Too Long to Pull the Collections “Trigger” Intentions are one thing and results are something completely different altogether. Your customer may intend to make good on the debt but their actions speak louder than their words ever could. The sad fact is the moment accounts receivables get past 30 days; the clock starts ticking on the likelihood of collecting on the debt. For example: Once a debt reaches 60 days , the average amount collection is roughly two-thirds or 66% . And when 90 days rolls around, the average debt collection has dropped to just 57% . Ask yourself this question: can you truly afford to wait and collect on only half the debt, even less or perhaps none at all? For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Mistake #7: Working With a Collections Company That’s Collecting the Wrong Kind of Attention The decision has been made to turn over collections to a 3rd party collections company. Does that company understand your industry’s own financial dynamics and challenges? Does that company have the systems, the technology, the manpower and most importantly, the experience and track record to collect on the debt? Conversely, maybe this company is attracting negative publicity because of their business practices or lack thereof. To protect yourself, your company and your business reputation, review this handy checklist of questions to ask ANY collections company that talks a good game: 1. How easy is it to keep track of accounts placed with them? 2. What certifications have they earned? 3. Do they use in-house investigators to track down elusive debtors? For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • Mistake #7: Working With a Collections Company That’s Collecting the Wrong Kind of Attention 4. Have they been sued by debtors they are collecting from or by clients who have hired them? Are they properly licensed and bonded where legally required? 5. And, perhaps most important, are they committed to maintaining your relationships with your customers? Simply put, you’re already in the hole for monies owed, the last thing you want to pile on that rising debt are even more costs for damage control. For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • How to Avoid the Mistakes and Get it Right the First Time Developing a sound collections policy is an integral part of running a successful company. We hope you have found this “7 Deadly Collections Mistakes” special report helpful in knowing exactly what to avoid in the first place. A natural next step upon reading this report is doing a quick audit of your collections practices and making changes based on the insights you’ve gained. You might find that you already have a number of accounts past the 30 days past due marker. You might be disheartened to see the amount of cash flow you’ve missed out on because of delinquent receivables. For a no-cost business collections quote, visit: http://www.burtcollect.com/
    • How to Avoid the Mistakes and Get it Right the First Time The good news is that Burt & Associates can help you, just as we’ve helped thousands of business owners across the country collect from the businesses that owe them money. There’s no need, at all, for you to spend another day going without the cash you’ve worked hard for. For a no- cost business debt co llection quote, You’ve learned in this report how to manage your collections going forward to keep yourself from getting delinquent receivables; let us handle collecting the money that’s already owed to you. You deserve to keep the cash you’ve earned . For a no-cost business collections quote, visit: http://www.burtcollect.com/