At some point, it becomes apparent that the debtor’s attempts at resolution are nothing more than delay tactics.
Such is the case currently where a client placed a claim with us for collection.
Our client is an independent contractor. He and the debtor company had been working together for well over a year. Suddenly, the company became delinquent on the weekly compensation. As a remedy, the debtor company’s principal issued a series of postdated checks to our client dated six months out. The parties continued their working arrangement. Six months later, our client began depositing the post-dated checks. One by one the checks returned. Each check was unpaid due to insufficient funds and that added to the debt. Continue reading “When Attempting to Renegotiate the Deal AGAIN Is Just Another Delay Tactic”
As you look at your receivables, you ask yourself, how collectible is this debt? Every business owner understands cash and cash flow, so collecting a debt or dealing with slow payers becomes a part of doing business. Since the dawn of the simplest commerce in human communities, debt collection has been an integral part of business in any society at any time in human history.
A look back to 2010 reveals that US businesses placed $150 billion of debt with collection agencies, and agencies were able to collect just $40 billion of that total. On delinquent debt, the industry averages a 20% collection rate, a decrease from 30% a few decades ago. According to Callminer.com, based on their read of those statistics, it is getting more difficult to collect. Continue reading “How Collectable Is Your Commercial Debt?”
As with any industry, there are business advisors or debt settlement companies that evaluate a company’s finances and make suggestions to help ease the debt. The goal is to keep the company operating. They can negotiate with creditors or not. Fees paid can be either contingent upon a deal with a creditor or paid up-front.
For some, debt settlement is a choice they make before out-of-court liquidation or bankruptcy.
Must you accept an offer from a debt settlement company as a creditor? The answer is no.
Must you negotiate with your customer or the debt settlement company? The answer is no.
Continue reading “Should A Debt Settlement Company Call, Here Is What To Expect”
Disparaging remarks added to the sting of not getting paid is upsetting. What makes it worse is when a client fabricates a reason for non-payment, which is downright untruthful.
You may know the drill.
There is a quick flurry of emails back and forth; insults hurled from one to the other. Added to the experience might include an exchange on the street, angry calls, disparaging remarks related to debt collection, raised voices on cell phones.
Disparaging remarks, all too common. Continue reading “Debt Collection and Disparaging Remarks”