| |
| |
|
|
Credit Information |
|
Commercial Collections: Business Finance Booster Shot
Commercial collections: fixture of the new B2B culture If you're in the business-to-business field, or even if you're a consumer products business that works through third-party distribution channels, you probably know what it's like to check your mail anxiously each day, sifting through all the bills for that payment that was supposed to have been in months ago. It wasn't supposed to be like this. If you were a good, honest businessperson who dealt with other good, honest businesspeople, "commercial collections" wasn't supposed to be part of your vocabulary. Back in the good old days, an invoice or purchase order that had an established company listed in the "bill to" field was almost as good as a cashier's check. Nowadays, if you're in the business of serving other businesses you may find that your cash flow is less reliable than a small-time bookie's. Commercial Collections: A Personal Story This past April I finally got the $2,000 a client owed me for work done in December, after spending almost as much money's worth of my time reminding them to pay. No, this wasn't one of those hand-shake deals-we had a 5-page contract specifying net-30 payment terms. Nor was this some guy with a lemonade stand. It was the media division of one of the largest retailers in the United States. The worst part was, I trusted this client based on my experience working with them a few years before. I actually spent the money on Christmas presents, fully expecting the payment to come in before my credit card statement. Avoiding Outstanding Invoices Of course, you can nip this problem in the bud by cultivating strong relationships with clients who pay on time. But those clients are getting few and far between-and, as I found, the good can go pretty bad pretty fast. Worse, it seems that the larger the business, the less likely they are to pay on time. "Net 10 days" might as well be a foreign language in Fortune 500 land. The long-standing advice given to B2B businesses and self-employed people is that the money is in big corporations. But good luck getting it from them before your rent is due. What I Should Have Done Looking back on my experience with the deadbeat corporate client, my biggest mistake was doing it all myself, with writing the letters and making the phone calls. With an hourly rate of about $75, I ended up spending the time equivalent of a large chunk of my $2000 fee. I should have gone to a collection agency. I just didn't know then that were collection agencies that would take on small business debts and run the whole process for you for as little as $20 per debt. Of course, I also didn't know that going to a collection agency didn't necessarily mean "putting an account in collections." Many collection agencies are in fact refashioning themselves as "accounts receivable management" specialists; they'll even manage your invoicing from end-to-end if you want. The client may not even realizing that the person on the phone is from an outside agency and not your own personal assistant. When I think of all the value of the time I spent collecting that last $2,000, I could kick myself for not handing it over to a collection agency. But, I can always look forward to putting this knowledge into practice the next time I have a client who's slow in paying. Steve Austin is a regular contributor to Let No Debt Remain Outstanding (http://www.let-no-debt-remain-outstanding.com/), a website with articles on choosing a collection agency, along with recommended the best collection agencies.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
Fair Isaac Corporation Credit or FICO Score As I am not from the US, I had no idea what FICO meant before researching it. FICO stands for Fair Isaac Corporation, a company based in California. What is a Credit Card? A credit card allows you to buy things even though you might not have the money to pay for it right away. The company that gave you the card lets you spend up to an agreed sum and then makes additional money available to you as you pay off what you've spent. Dont Fall For A Scheme When Trying To Rebuild Your Credit History For people with a spotty credit history or bad credit, getting approved for a standard credit card can be difficult, if not impossible.There are a number of credit card options that are aimed specifically at people who have bad credit and are trying to rebuild or repair it. How A Prepaid Debit Card Can Help You Rebuild Your Credit Consumers today are up to their eyeballs in debt. And many people don't realize it until their good credit has been devastated. Credit Cards Credit cards are a form of unsecured credit. The issuer is extending you a line of credit, usually tacking on all sorts of little surprises in the fine print. How To Get Out Of Credit Card Debt If you're like the average person, let me warn you ahead of time about what I'm going to reveal in the next few paragraphs. You may be angry after you finish reading this article about how you've been misled in the use of credit card debt. Everything You Always Wanted To Know About Your Credit Report Your credit report is a very powerful report that essential controls what you can and cannot do in your life. Unfortunately many people aren't aware of what a credit report actually is and what information is contained on the report. Bad Credit? No Credit? Yeah, Its a Problem. Many companies use the slogan "Bad Credit? No Credit? No Problem!" The truth is that it is in fact a problem and there is no easy way to correct it. It takes a lot of time and effort to obtain credit when you do not have any and even longer to fix bad credit. Bounced Checks - Straight Talk On Dealing With Bad Checks (NSF) A check can be considered bad if it is bogus or the NSF checks (non sufficient funds check), also referred as bounced check.The issuance of a NSF or bad checks is an unlawful act and can attract civil and criminal penalties. Bad Checks, Bounced Checks, & NSF Checks Negotiable instruments like checks and drafts have become an indispensable part of any business transaction today. As a result, it has become increasingly important to safeguard a business against financial losses arising from the receipt of fraudulent or bad checks. What You Didnt Know About Your Credit Card Numbers Have you ever really looked at your credit card and tried to figure out what that huge string of numbers really means? Do these card issuers have so many customers that your account number has to be 16 digits long?You may be surprised to know that all those numbers you see actually do stand for something, and it's not just who you are. Let's take a look. How To Choose Your Credit Card Application The articles and tips provided on this site are intended to help you access credit card offers that suit your lifestyle. By providing you with some basic information, we are confident that you will be able to easily identify which are the best credit cards for you. Bad Credit Credit Cards Chances are you've gotten your share of offers like this in the mail Bad Credit Credit Card, Bad Credit Visa Cards and Credit Cards for People With Bad Credit. Re-establish your credit with a bad credit credit card, credit cards for people with bad credit or pre-approved Visa cards regardless of your bad credit history, some with low introductory rates and other perks. Building Good Business Credit After Bad Credit Can you establish good business credit if you have bad personal credit? The answer is yes.. The Best Strategy To Erase Credit Card Debt Credit card debt is a growing sickness in the United States and Europe. It is very important to eliminate debt and take control of your financial health. Trying to Land a Job? Poor Credit Scores May Hurt Your Chances Many employers are now looking at an applicant's credit report for hiring purposes. During an interview process a potential employer may request your written consent to access your credit report. Useful Tips on Using Credit Cards Here are some useful tips on using credit cards. Whether you shop online, by telephone or by mail, a credit card can make buying many things much easier; but when you use a credit card, it's important to keep track of your spending. Credit Card Tips Here are some useful credit card tips for you to consider before applying for a credit card. Before applying for a credit card, you should decide why you want one, and make sure you can use it wisely. The FICO Score Misconceptions There are many misconceptions about credit scores out there. There are borrowers who believe that they don't have a credit score. Restore Your Credit Rating And Reduce Your Debts Your credit rating affects many areas of your life. Opening new credit accounts, buying a home or car, getting a new job, and receiving discounts on insurance rates are just a few of the things that are impacted by your credit score.
|
|||||||||||||||||
