Getting permission to run personal credit reports on B2B Credit Applications can lead to payments during difficult times At our commercial collection agency, we often encounter business owners who claim their company’s financial condition is terrible and they can’t pay anything or can make only small payments. It is difficult to verify this information on … Read more
Elite athletes mentally visualize technique and success to improve actual performance. Our debt collectors use a very simple technique to get better results. Studies have shown that visualization improves awareness, mood, confidence and outcome. We’ve been using these techniques with dramatic success at The Kaplan Group for years. In house collectors typically have 2 objectives, … Read more
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
NCO Group, reputedly the largest collection agency in the world, has agreed to pay a civil penalty of $3.2 million according to an announcement today from the Federal Trade Commission. The government’s press release says it is the largest penalty ever against a third party debt collector The FTC complaint alleged violations of the FDCPA … Read more
We strongly prefer to collect money owed to our clients without going to court. In most situations, if the debtor is willing to voluntarily cooperate at any level, we can get our client’s money faster and less expensively than going to court. But, when litigation is the best alternative and appropriate, we do not hesitate … Read more
Determining the credit limit for customers is a difficult task. One factor is to analyze the customer’s financial statements to understand their profitability, financial strength, and liquidity. We have created a comprehensive resource for credit professionals that includes the following: Videos and transcripts explaining of the 3 financial statements (e.g. income statement, balance sheet, and … Read more
The Kaplan Group As we’ve explained many times in our previous posts, delinquent and non-paying customers and accounts can have a very serious effect on the health of your business. Obviously, when a customer orders a product or service and then doesn’t pay for it, your business suffers – so how can these delinquencies be … Read more
Learning to effectively collect debts, whether commercial (business-to-business) or consumer (debts owed by individuals) requires patience and diligence. The best debt collectors have honed their skills over years, learning what strategies tend to push debtors towards making payments. For new debt collectors who haven’t yet had time to develop their collection techniques, however, there are … Read more
While knowing when to send a past-due account to a collection agency is sometimes difficult, it is important to keep in mind that the sooner an agency has an account and can begin collecting on it, the more likely they are to successfully recover your money. There are multiple reasons to send a claim to … Read more
This was originally published by Dean Kaplan on InsideARM in September 2012 We’ve all heard hundreds of different stories as to why a business debt has not been paid. For our commercial collection agency, the first thing our debt collectors are trained to do is to figure out if it is a legitimate explanation or … Read more
While telephone is still the most effective way to communicate with debtors during a debt collection effort, other forms of correspondence including email can play an important role in a debt collector‘s efforts to contact a non-paying customer. When using email for collection purposes, it is important to follow some general guidelines to ensure your … Read more
