Principles of Commercial Debt Collection

Business, especially small business that rely heavily on short term cash flow, know how important it is to get your customers to pay their bills – on time. If your customers do not pay you on time then it is easy to become a slow pay yourself.

When collecting receivables, or for that matter, any debt from a customer there are principles to debt collection that you should follow:

• your risk - don't let the receivables from one customer get too high. A good rule of thumb is that one customer should never exceed 10% of total receivables. If you ever get to 40% from one customer you are putting the entire company at risk – regardless of how financially strong your customer is (remember GM and AIG).
• Salesforce may know your customer best but let them sell- leave collections to the professionals. Either have your accounts receivable group collect the debt or do it yourself.
• receivable is a business relationship - don't let it get personal. Keep the collection process and all of your communications professional.
• procedures. Have policies in place for 30, 60, 90 and above 90 day receivables and follow them -don't escalate you collections efforts right away. Do not delay the collection process – it will only get worse.
• the debt becomes uncollectable use a collection agency. Their fees may seem high – but at some point (usually 120 days) you have expended all efforts and outside help is required.

in mind that many small businesses will use your receivable as their cash flow and they will only pay when they need your services or products again. If this continues to happen make sure you get deposits up front or even full payment if you are concerned that this customer is a chronic bad pay. Better to lose the customer than the money.

stay on top of the receivable- no matter how long it takes. Some businesses are surprised that they can actually get paid years after the due date and along after they ceased doing business with the customer.

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Posted in: Credit Card

Credit Card Debt Relief Options

For the millions of Americans who are currently facing billions of dollars in bad debt, credit card debt relief options are number one on people's minds. The poor economy, lack of employment and all around high cost of living have affected millions of people in recent years with overuse of credit cards. The federal government in 2010 saw a need for relief for these Americans, and passed new legislation stating that American could seek assistance with their debt through debt settlement companies.

Debt settlement companies are able to provide credit relief options to Americans who are facing more than $10,000 in unsecured debt. These settlement companies will contact all major creditors that a consumer has, offering settlements on the existing debt. These settlements at times, can be for up to 50% off of what the original debt was. Once approved, this becomes a way for consumers to legally avoid paying back their bad debt. Legislation passed also states that these debt settlement companies may not charge an upfront fee for the use of their services.

Credit card companies are very aware of the legislation passed as well as the need consumers have for credit card debt relief options. These credit card companies have been left with billions of dollars in bad debt in recent years, and are more likely now than ever before to accept settlements on bad debt. Credit card companies feel that they would rather get some payment on the debt, than to be left with no payments at all.

For consumers who are currently facing large amounts of debt, it is certainly worth discussing credit card debt relief options with a debt settlement company. It can be a great alternative to filing for bankruptcy, as bankruptcy can have very negative impacts on consumer's lives for several years.

These negative impacts will prevent consumers in the future from being able to purchase any large items including homes and cars. The settlement process can be a rather simple process once started, and can provide much needed relief for consumers today.

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Posted in: Credit Card

Tips To Negotiate A Legal Debt Settlement Deal

The poor economy and lack of employment have had a tremendous effect on America, placing millions of people in debt with credit cards. For the majority of those facing large amounts of debt, it is due to the fact that credit cards are being used to pay for monthly bills and every day necessities in order to survive. That debt has now hit an all time high in the nation, causing Americans to seek out charge card debt reduction advice. That advice typically comes in the form of debt settlement companies.

Debt settlement companies will work on the behalf of a consumer offering settlements to major creditors on existing debt. These settlements have been known to be as low as 50% off of what the original debt was. It is recommended when working with a debt settlement company to show the reason why all debt cannot be paid off to assist in the settlement process.

Consumers should list all debt that they currently have to show major creditors why a full payment cannot be made on debt. The more spent income that is shown, will make it appear to creditors as if there is no other choice but to accept a settlement.

Credit card companies are very aware of the need for settlements, as well as legislation that was passed recently by the government stating that consumers could seek assistance through debt settlement companies. These companies are also aware of the fact that consumers are seeking assistance with charge card debt reduction advice through settlement companies. Because of the bad debt that credit card companies have experienced over the last several years, these companies are now more likely than ever before to accept a settlement offer, rather than to get no payment at all

It is extremely beneficial for those facing large amounts of debt to seek assistance through a settlement company. It can provide a huge sense of relief knowing that debt is back under control, and that something is being done to reduce debt, rather than to ignore it

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Posted in: Credit Card