As part of his campaign commentary, Donald Trump proffered the plummeting Pound Sterling in the wake of BREXT, the UK’s vote to leave the European Union, was a great buying opportunity for Americans. That may or may not be true, depending upon what is being purchased. However, the BREXIT (British Exit) from the EU, I […]
Is Your Debt Collector A Professional?
What makes a professional debt collector? From the timeliness and accuracy of reporting to collection strategy, there are many elements that determine the professionalism and success of your debt collector. Do you know who is collecting your bills? Elements of a Professional Debt Collector Reporting – Over the decades, I’ve had some clients tell me […]
What to Do When Your Debtor Goes Out of Business
When a company winds down and closes its doors, it can frequently leave creditors holding a bill. Your debtor goes out of business. Generally, California law grants wide deference to the protection provided by corporations to shareholders and directors, and grants similar immunity to new companies. It erects a wall against the former company’s creditors, […]
Why Use a Credit Application
1) Protection From Bad Debt At the inception of a new business relationship, it may be difficult to imagine that this exciting new client will one day become a frustrating debtor. However, all debtors start out as customers. It is crucial to protect yourself from the beginning, and it is easy to do so with […]
Certificate of Insurance – Do You Ask for This?
This article is reprinted with permission from CreditBytes. The scenario: Your company has a customer that has consistently ranked in your top 20 for the past 5+years, which accounts for a significant portion of your company’s annual sales. Recently, the customer has placed another significant order along the lines of what they’ve been submitting regularly […]
When a Client Becomes a Debtor
Tools and Pitfalls When Collecting Delinquent Bills When a client becomes delinquent on its bill, but there’s still some hope the situation will be rectified short of writing off the account and placing it for collection, there are several tools available to a creditor to pressure the client to pay. Attaching Interest on a Debt […]
Should Salespeople be Involved in Collections?
This was posed to me as a topic recently and it raised my eyebrows after I had my initial knee-jerk reaction of wondering why anyone would want a non-professional involved in the collection process. However, deeper thought about it made me realize the sales force indeed has a role in ensuring delinquent accounts are paid […]
Days Sales Outstanding
I recently mentioned the “DSO” statistic at a meeting of sales managers and was not surprised to see many blank faces staring at me in return – they had no clue what the statistic is or what impact it has on their business, even though most of them were also owners of their businesses. Most […]
A Solid Receivable Recovery Policy
by: David E. Greenberg So many times you’ve heard debt collectors and lawyers express dismay over why creditors hold onto delinquent debt without taking any action to bring in those missing dollars. That dismay comes from knowing a variety of factors. Failure to take action on a delinquent debt can cause the receivable to become […]
The Out of Business Corporation and Successor Liability
by: David E. Greenberg In discussing the out of business corporation, one must first understand the nature of corporations in this country. The U.S. corporation is a legal entity unto itself, separate from the principals or directors. In other words our law regards a corporation as an actual person, complete with its own life, health, […]