Dean Kaplan 
At our collection agency, we have a client who uses a provision in the U.S. Code of Federal Regulations (“CFR”) to collect significantly more than the original balance due on accounts sent to collections. As an example, we collected over $22,000 on freight bills that were only $11,000 if they had been paid on time. … Read more
It is frustrating, or worse, when a business customer does not pay their first open invoice on time. Perhaps something just happened at the customer’s business after the credit decision was made that has resulted in cash flow problems. But, there is also the concern that this is just a ‘bad apple’ that was … Read more
At our commercial collection agency, we aren’t afraid to talk to attorneys. When we call a debtor and they tell us to talk to their attorney, our biggest fear is that the attorney will not actually talk to us. Once we are instructed to talk to a company’s attorney, we are no longer allowed … Read more
The chances of collecting on an invoice due from a company that has ceased operating are very slim. If the business was organized as a corporation or LLC (limited liability company) then only the business entity itself is liable for outstanding invoices. If there are no assets remaining in the entity then the entity … Read more
This article has been updated since originally published in CreditToday with new input from attorneys and other credit professionals. We received numerous comments via CreditToday, InsideARM and LinkedIn that has been incorporated into this revised edition. We frequently get asked by new clients about piercing the corporate veil on owner-operated companies that go out … Read more
At our commercial collection agency we always prefer having a personal guaranty. Years ago, a new client started sending us claims along with their very simple, one page credit application. At the bottom of the page, immediately above the signature block, it reads exactly as follows: NOTWITHSTANDING THIS ACCOUNT IS ESTABLISHED IN THE NAME OF … Read more
If a business is organized as a corporation, limited liability company (LLC), or other type of separate legal entity, the owner is not liable for the debts of the business unless other conditions exist. For small businesses, the primary reason the owner took the time and expense to set up the separate legal entity was … Read more
A discussion on LinkedIn regarding my recent article “Does Knowing the Truth Matter” prompted this comment from Kim Gelinskey, Credit and Collections Analyst for Veolia ES Technical Solutions, L.L.C. “I’ve learned you are more productive working through a problem than plowing through the issue.” This immediately struck a chord with me. I thought of all … Read more
Unfortunately, we know that many debtors will provide false or misleading information in order to make it harder to collect. A well-designed and executed strategy is necessary to get to the truth which is key for increasing collections and making good business decisions as discussed in this recent post “Does Knowing The Truth About a … Read more
Your collection agency reports that they too have not yet been able to collect on an unpaid invoice from your business customer. Do you care why? Some of your common choices at this point are: Offer a Payment Plan Settle for reduced amount Commence litigation Write off the debt Close the claim Monitor the situation … Read more
