For many small business owners it can be overwhelming trying to go after another company for a delinquent account. Many times small businesses may feel tracking them down can cost more than what is actually owed and so they avoid the hassle. Corporate Collections International is committed to the recovery of organizations’ losses promptly and professionally. The company, which has been in business for 25 years, uses this chart to show how small losses can add up a large amount of loss revenue if ignored.
A key rule to remember is that taking action quickly is important. The sooner you address accounts receivable issues and pursue a non-paying account, the more likely your business will recover the money owed.
For anyone involved in the construction industry, it is important to know about mechanic’s liens. According to wikipedia’s definition, a mechanic’s lien is a security interest in the title to a property for the benefit of those who have supplied labor or materials that improve the property. When talking about real property, it is called by various names, including, generically, construction lien. It is also called a materialman’s lien or supplier’s lien when referring to those supplying materials, a laborer’s lien when referring to those supplying labor, and a design professional’s lien when referring to architects or designers who contribute to a work of improvement.
Due to the economics of the construction business, legislation has been passed in almost every state that contractors and subcontractors need a greater remedy for non-payment for their work than merely the right to sue on their contracts. In particular, without the mechanic’s lien, subcontractors providing either labor or materials may have no effective remedy if their general contractor isn’t sufficiently financially responsible because their only contractual right is with that general contractor.
At Corporate Collections and Corporate Lien Services, we have extensive experience with filing and perfecting liens. We also counsel our clients to take a proactive approach to protecting their rights by using preliminary liens. For a free consultation, call us at (888) 345-2500.
With businesses closures, cut back, and bankruptcies still on the rise, how do you protect your business and get those frozen assets out of your customer’s bank accounts and into yours? Here are some tips from the Commercial Collection Agency Association.
In this economy, it is important to get your delinquent customers placed faster with a collection agency. There has never been a more important time for quick placement of accounts for collection. So how soon should you place?
A good guideline is the 60 day rule. When an account goes 60 days past its due date, the matter should be placed for collection. Here are some criteria to assist you in making the decision to place accounts with an agency for collection.
1. Invoice terms have hit the net due date and the customer is ignoring your requests for payment.
2. The customer makes repeated promises to pay but fails to follow through.
3. The customer has made payment on the debt but the check they issued to your office has been stopped or returned for non-sufficient funds.
4. The customer’s phones are answered by an employee and you can never get in contact with the principal or accounts payable.
It is basic instinct to want to collect the debt yourself. As the vendor, you don’t want to have to alienate a customer and you also don’t want to have to share a percentage of your money with an agency; all of this is natural. But the longer you hold onto these accounts, the more toxic they become. Toxic assets are not assets; they are liabilities and if you don’t see them for what they are they can do serious harm to your business.
To help your business “detox” and turn liabilities into assets, call Corporate Collections International at 888.345.2500.
In today’s economy, every dollar of revenue is critical to the success of a company — especially small businesses. That’s why a professional, experienced collection agency can be a great asset to an accounts receivable team. A full service debt recovery agency can not only serve as a buffer between the company and debtor business, but can also advise clients on how to structure their contracts more effectively, how to use preventative tools like preliminary liens and how to recognize bad debt. As a small business, you don’t have to go it alone, Corporate Collections is here to help. Assisting businesses with problem accounts is our passion. Through this blog, we’ll be sharing insights from our more than 25 years of experience in corporate collections to help your business.