Wednesday, December 29, 2010
If you are concerned about identity theft... Red Flags Rules take effect December 31, 2010, Announces Collection Agency B&A http://ping.fm/YbLQo
Tuesday, December 28, 2010
Monday, December 27, 2010
Wednesday, December 22, 2010
Collection Agency tips for a debt collection strategy, screen your clients credit http://ping.fm/ZAS1h
How important is update business credit application, tips from a Collection Agency http://ping.fm/GLUg8
Tuesday, December 21, 2010
Monday, December 20, 2010
Have you wonder, how to collect an outstanding debt, a collection agency base in New York, provides free information to collect a debt http://ping.fm/PGJ1Q
Tips How to Collect an Outstanding Debt, free information from a Collection Agency Service http://ping.fm/1j6KS
Wednesday, December 15, 2010
Tuesday, December 7, 2010
Friday, December 3, 2010
Thursday, December 2, 2010
Wednesday, December 1, 2010
Business Debt Collection, When a business is been working hard to maintain sales, profits, ROI, etc http://ping.fm/1SOv3
Tuesday, November 30, 2010
Monday, November 29, 2010
Wednesday, November 24, 2010
Choosing a Commercial Collection Agency, please accept our apology for the death threat and warm wishes for the holiday season http://ping.fm/Uee1L
Friday, November 19, 2010
Business Debt Recovery, A good strategy to collect that debt can be a few easy steps http://ping.fm/T18Il
Business Debt Recovery, A good strategy to collect that debt can be a few easy steps http://ping.fm/I6HdF
Monday, November 15, 2010
Thursday, November 11, 2010
Tuesday, November 9, 2010
Tuesday, November 2, 2010
Monday, November 1, 2010
Friday, October 29, 2010
Wednesday, October 27, 2010
Tuesday, October 26, 2010
Thursday, October 21, 2010
Tuesday, October 19, 2010
Thursday, October 14, 2010
Tuesday, October 12, 2010
Thursday, October 7, 2010
Monday, October 4, 2010
Wednesday, September 29, 2010
Tuesday, September 28, 2010
Thursday, September 23, 2010
Wednesday, September 22, 2010
Monday, September 20, 2010
Friday, September 17, 2010
Thursday, September 16, 2010
Wednesday, September 15, 2010
Tuesday, September 14, 2010
Monday, September 13, 2010
Friday, September 10, 2010
Thursday, September 9, 2010
Wednesday, September 8, 2010
Tuesday, September 7, 2010
Friday, September 3, 2010
Wednesday, September 1, 2010
Tuesday, August 31, 2010
Monday, August 30, 2010
Friday, August 27, 2010
Thursday, August 26, 2010
Tuesday, August 24, 2010
Monday, August 23, 2010
Thursday, August 19, 2010
Tuesday, August 17, 2010
Monday, August 16, 2010
Friday, August 13, 2010
Thursday, August 12, 2010
Wednesday, August 11, 2010
Friday, August 6, 2010
Wednesday, August 4, 2010
Tuesday, August 3, 2010
Monday, August 2, 2010
Friday, July 30, 2010
Wednesday, July 28, 2010
Tuesday, July 27, 2010
Monday, July 26, 2010
Thursday, July 22, 2010
Wednesday, July 21, 2010
Tuesday, July 20, 2010
Businesses are already required to report payments to non corporate service providers http://ping.fm/oJJLc
Wednesday, March 17, 2010
Collection Agency - Collection Rates, get a Quote for your A/R
Commercial Collection Agency
is a place you can get your accounts receivables collected, get collection rates, or talk with one of our associates. This related topic about 30 days terms , and learn about a Collection Agency publish regarding commercial debt, to talk about it contact commercial collection accounts.
Read our Commercial Collection Blog
Monday, March 15, 2010
Collection Agency helps Collect your Accounts Receivables
Collection Agency
Money can and does stay on your accounts receivables tree, as long you let it remain, it grows and grows. If your are making it to easy for your accounts not to pay, then you need to be refective with your answer because some of your past-due accounts are very large and old. Burt & Associates is a Collection Agency by excellence.
Commercial Collection Agency
Do Your Homework Before Doing Business: This is cold comfort for those struggling to squeeze a dime out of currently delinquent customers but good practice for new ones. Forward-thinking accountants can check the credit rating of a business through our burt risk scoring system while also checking references.Place your accounts or get our
Thursday, March 4, 2010
Your Company may well have lost its right to receive payment
When your company is involved in exporting, if the documents presented do not conform precisely to the terms of the letter of credit, your company may well have lost its right to receive payment. While your bank can request a waiver from the buyer, if the buyer balks, your company could be out of luck. Therefore, it is essential that you make sure there are no discrepancies between the export documents and the letter of credit. Be sure of obvious things, such as spelling of companies as they appear on the invoice–not as a DBA name which doesn’t appear elsewhere. Find out how long shipping will take. That way you can simply add 21 days as the latest date to present the documents. In addition, you should know the details of the International Commercial Term, as defined by the U.S. Chamber of Commerce
Monday, March 1, 2010
Small Business: Improve Your Accounts Receivables Collection
Almost any small business can use advice on how to improve its collection cycle. The first line of defense against late payments is a complete invoice. Your bills should be accurate, detailed and easy to understand. If difficult to understand, then your client will need to call for additional information. That translates into “You have been added to their to-do list,” which increases the time of your collection cycle.
Tips For Collecting on Judgments
First, bank on the future by creating liens. An important step in any collection plan is to establish liens (legal claims) against the judgment debtor’s real estate and business property. Liens put you in the best position to get paid if the debtor declares bankruptcy or acquires, sells, refinances or transfers property.
Second, do your homework. The more you know about the business or person who owes you money, the more likely you are to get paid. So here’s your opportunity to be a private detective of sorts, and keep tabs on the debtor’s assets, lifestyle and projected financial situation.
Here’s a little test. Would you know if the debtor moved, expanded or sold a business, or refinanced real estate? Do you know whether or not the debtor cares about their credit rating? Do you know what could pressure the debtor into bankruptcy? If you can’t answer yes to every one of these questions, you’ve got work to do. Periodically write or telephone the person who owes you money.
And third, know when to call it quits. You’ve heard the warning, “Don’t throw good money after bad”. There is much you can do to collect on a judgment, but these efforts cost money. And although most judgment collection costs are recoverable, that won’t do you any good if you never catch up with the judgment debtor. So keep a sharp eye on how much you are spending on your attempts to collect.
Second, do your homework. The more you know about the business or person who owes you money, the more likely you are to get paid. So here’s your opportunity to be a private detective of sorts, and keep tabs on the debtor’s assets, lifestyle and projected financial situation.
Here’s a little test. Would you know if the debtor moved, expanded or sold a business, or refinanced real estate? Do you know whether or not the debtor cares about their credit rating? Do you know what could pressure the debtor into bankruptcy? If you can’t answer yes to every one of these questions, you’ve got work to do. Periodically write or telephone the person who owes you money.
And third, know when to call it quits. You’ve heard the warning, “Don’t throw good money after bad”. There is much you can do to collect on a judgment, but these efforts cost money. And although most judgment collection costs are recoverable, that won’t do you any good if you never catch up with the judgment debtor. So keep a sharp eye on how much you are spending on your attempts to collect.
No Hope & No Money
When assessing risk in dealing with a business , it’s important to know as much as possible about both the customer and the industry the business operates in. For example, in today’s economic climate, any business that’s even remotely connected to the real estate sector should be viewed with caution. That includes a wide range of companies from carpet manufacturers to home builders. Likewise, any company that sells to the auto industry is likely being squeezed because of the downturn in that sector. Therefore, unless there are convincing reasons to sell extensively to companies in such industries or extend credit facilities, it might be advisable to limit exposure to them or make certain your terms of sale reflect both the client and industry.
When dealing with companies in depressed industries you should have as much information as possible about the firm’s finances and review, on a regular basis, cash flow and all important ratios. During this analysis, review their payment history in comparison to industry standards and note any changes to their payment habits. Understanding the importance of keeping a watchful eye on your debtors and the industries they are in could save you time, and most important of all, money
When dealing with companies in depressed industries you should have as much information as possible about the firm’s finances and review, on a regular basis, cash flow and all important ratios. During this analysis, review their payment history in comparison to industry standards and note any changes to their payment habits. Understanding the importance of keeping a watchful eye on your debtors and the industries they are in could save you time, and most important of all, money
Start Your Business Week Off Right
Useful Quotes :
An economist is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today—Laurence Peter
By working faithfully eight hours a day you may eventually get to be boss and work twelve hours a day–Robert Frost
Every day I get up and look through the Forbes list of the richest people in America. If I’m not there, I go to work.–Robert Orben
Failure doesn’t mean you are a failure, it just means you haven’t succeeded yet.–Robert Schuller
For a lot of people, the weekly paycheck is “take-home pay” because home is the only place they can afford to go with it.–Charles Jaffe
An economist is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today—Laurence Peter
By working faithfully eight hours a day you may eventually get to be boss and work twelve hours a day–Robert Frost
Every day I get up and look through the Forbes list of the richest people in America. If I’m not there, I go to work.–Robert Orben
Failure doesn’t mean you are a failure, it just means you haven’t succeeded yet.–Robert Schuller
For a lot of people, the weekly paycheck is “take-home pay” because home is the only place they can afford to go with it.–Charles Jaffe
What is a Good Commercial Grade Bond?
Below is the system of credit ratings that Standard & Poor’s applies to bonds. Ratings can be modified with + or – signs. So an AA- is a higher rating than an A+ rating. With such modifications, BBB- is the lowest investment-grade rating. Other credit rating systems are similar.
AAA Best credit quality; extremely reliable with regard to financial obligations
AA Very good credit quality; very reliable
A More susceptible to economic conditions; still good credit quality
BBB Lowest investment-grade rating
BB Caution is necessary, best sub investment credit quality
B Vulnerable to changes in economic conditions; currently showing the ability to meet its financial obligations
CCC Currently vulnerable to nonpayment; dependent on favorable economic conditions
CC Highly vulnerable to a payment default
C Close to or already bankrupt; payment on the obligation currently continued
D Payment default on some financial obligations has actually occurred
AAA Best credit quality; extremely reliable with regard to financial obligations
AA Very good credit quality; very reliable
A More susceptible to economic conditions; still good credit quality
BBB Lowest investment-grade rating
BB Caution is necessary, best sub investment credit quality
B Vulnerable to changes in economic conditions; currently showing the ability to meet its financial obligations
CCC Currently vulnerable to nonpayment; dependent on favorable economic conditions
CC Highly vulnerable to a payment default
C Close to or already bankrupt; payment on the obligation currently continued
D Payment default on some financial obligations has actually occurred
Stimulus Money You Need to Know About
SBA chief says administration is asking Congress to extend loan guarantees
Small Business Administration (SBA) Administrator Karen Mills was at International Franchise Association Convention Monday to discuss ways both the agency and the Obama administration are working on to further encourage lending to small businesses.These efforts, Mills says, include asking Congress for additional funding for its loan programs.In February of 2009, the SBA received $730 million in federal stimulus funding as part of the American Recovery and Reinvestment Act. However, this wasn’t enough to meet the loan demand and in December, the SBA received an additional $125 million from Congress.
“We immediately were able to get that out as well. (But) it will run out at the end of this month,” Mills says, adding that the president has asked Congress for another extension in funding.
SBA spokesman Jonathan Swain says the president called for extending the recovery act provisions for the SBA’s 7a and 504 Certified Development Company loan programs through Sept. 30, 2010. The House passed legislation that would do so and it included $323 million to fund the extension. The U.S. Senate has not yet acted on the proposal.
“We are continuing to discuss it with the Senate and are hopeful we will see the extension move forward soon,” Swain says.
If granted, Mills says, the additional funds will be used to increase the loan limit for its 7(a) and 504 loan programs from $2 million to $5 million. Mills says about 10 percent or 12 percent of the loans made with recovery funds have gone to franchisees. Many of these franchisees, she says, have expressed the need for larger loan limits in order to purchase buildings or to make acquisitions.
“So, we’ve proposed to Congress that we increase these loans,” she says.
Other things the SBA is looking to do is extend the 90 percent guarantee on its 7(a) loan program.
The Recovery Act, among other things, temporarily raised the guarantee on the 7(a) loan program up to 90 percent through the end of the calendar year 2009, or until funds set aside for the program were exhausted.
Prior to the enactment of the law, the guarantee on the 7(a) loan program was between 75 percent and 85 percent.
The act also temporarily eliminated fees for borrowers on the 7(a) loans as well as fees for both borrowers and lenders on the 504 loans through the end of the year or until funding for the enhanced programs are exhausted.
The 504 CDC loans are principally used for land, new building construction, acquisition and rehab of existing buildings, long-term machinery and equipment purchases, and debt refinancing.
Interestingly, Mills says, the agency is also seeking to use its 504 loan program to refinance owner-occupied commercial real estate mortgages.
Mills says that in this present economic environment, in an effort to get commercial mortgages off their books, some banks may be unwilling to renew commercial real estate mortgages even if the owners have never missed a payment.
Using the 504 loan program in this capacity temporarily, she says, could benefit these business owners.
Mills says the agency has been meeting with small and large banks as well as small businesses and community leaders around the country to develop the measures that it is seeking from Congress. And, she says she believes these measures are ones that will be easy to implement.
“We can do those things quickly within the programmatic structure that we already have (in place) at very cost-effective rates,” she says.
Small Business Administration (SBA) Administrator Karen Mills was at International Franchise Association Convention Monday to discuss ways both the agency and the Obama administration are working on to further encourage lending to small businesses.These efforts, Mills says, include asking Congress for additional funding for its loan programs.In February of 2009, the SBA received $730 million in federal stimulus funding as part of the American Recovery and Reinvestment Act. However, this wasn’t enough to meet the loan demand and in December, the SBA received an additional $125 million from Congress.
“We immediately were able to get that out as well. (But) it will run out at the end of this month,” Mills says, adding that the president has asked Congress for another extension in funding.
SBA spokesman Jonathan Swain says the president called for extending the recovery act provisions for the SBA’s 7a and 504 Certified Development Company loan programs through Sept. 30, 2010. The House passed legislation that would do so and it included $323 million to fund the extension. The U.S. Senate has not yet acted on the proposal.
“We are continuing to discuss it with the Senate and are hopeful we will see the extension move forward soon,” Swain says.
If granted, Mills says, the additional funds will be used to increase the loan limit for its 7(a) and 504 loan programs from $2 million to $5 million. Mills says about 10 percent or 12 percent of the loans made with recovery funds have gone to franchisees. Many of these franchisees, she says, have expressed the need for larger loan limits in order to purchase buildings or to make acquisitions.
“So, we’ve proposed to Congress that we increase these loans,” she says.
Other things the SBA is looking to do is extend the 90 percent guarantee on its 7(a) loan program.
The Recovery Act, among other things, temporarily raised the guarantee on the 7(a) loan program up to 90 percent through the end of the calendar year 2009, or until funds set aside for the program were exhausted.
Prior to the enactment of the law, the guarantee on the 7(a) loan program was between 75 percent and 85 percent.
The act also temporarily eliminated fees for borrowers on the 7(a) loans as well as fees for both borrowers and lenders on the 504 loans through the end of the year or until funding for the enhanced programs are exhausted.
The 504 CDC loans are principally used for land, new building construction, acquisition and rehab of existing buildings, long-term machinery and equipment purchases, and debt refinancing.
Interestingly, Mills says, the agency is also seeking to use its 504 loan program to refinance owner-occupied commercial real estate mortgages.
Mills says that in this present economic environment, in an effort to get commercial mortgages off their books, some banks may be unwilling to renew commercial real estate mortgages even if the owners have never missed a payment.
Using the 504 loan program in this capacity temporarily, she says, could benefit these business owners.
Mills says the agency has been meeting with small and large banks as well as small businesses and community leaders around the country to develop the measures that it is seeking from Congress. And, she says she believes these measures are ones that will be easy to implement.
“We can do those things quickly within the programmatic structure that we already have (in place) at very cost-effective rates,” she says.
Tuesday, February 16, 2010
It's My Money and I want It Now
This simple calculation gives you a powerful tracking tool that helps you adjust your cash in-flow on an as-needed basis:
Step 1: Calculate your average collection period by dividing your total sales for the previous year by 365. This gives you your average daily sales volume.
(Total Sales / 365 Days = Average Daily Sales Volume)
Step 2: Then divide your average daily sales volume into your current accounts receivable balance to get the number of days it takes to collect a bill.
(Average Accounts Receivable Collection Period = Average Daily Sales Volume / Current Accounts Receivable Balance)
Now that you know your average accounts receivable collection period, you then need to interpret that number as it relates to your commercial business.Is your collection period in line with the company's credit policy? does your credit terms provide your customers with 30 days to pay their bills as related to your products and services.
Are you tracking overdue accounts and taking consistent action to collect past due accounts? Do you have an effective tool in place to track when an account comes due, and knowing who has paid their bills and who has not? When a customer's invoice goes past its due date, is there a procedure in place to place that account for collection By answering these basic questions, implementing a procedures that Burt and Associates can provide to help you get your money on time every time.
Step 1: Calculate your average collection period by dividing your total sales for the previous year by 365. This gives you your average daily sales volume.
(Total Sales / 365 Days = Average Daily Sales Volume)
Step 2: Then divide your average daily sales volume into your current accounts receivable balance to get the number of days it takes to collect a bill.
(Average Accounts Receivable Collection Period = Average Daily Sales Volume / Current Accounts Receivable Balance)
Now that you know your average accounts receivable collection period, you then need to interpret that number as it relates to your commercial business.Is your collection period in line with the company's credit policy? does your credit terms provide your customers with 30 days to pay their bills as related to your products and services.
Are you tracking overdue accounts and taking consistent action to collect past due accounts? Do you have an effective tool in place to track when an account comes due, and knowing who has paid their bills and who has not? When a customer's invoice goes past its due date, is there a procedure in place to place that account for collection By answering these basic questions, implementing a procedures that Burt and Associates can provide to help you get your money on time every time.
To Collect or Not Collect?
To collect or not to collect. Is Burt and associates the answer?
Many times people contact our firm with a commercial debt that is owed to their company. This could be an invoice over due or a contract dispute.
The key to a good working relationship is communication and sometimes that relationship sours due to a lack of speaking clearly.
Once you have tried everything in your companies powers to relieve a burden or debt it is sometimes best to wash your hands of that deal and move into offensive mode.
Burt & associates has been accused of deceptive trade practices or received complaints from our clients debtors. Why? Because we are the quarterback that is given the call with 8 seconds on the clock on a 4th and 3 on the six yard line during the superbowl.
We are often the last step before legal action is taken.
Many times people contact our firm with a commercial debt that is owed to their company. This could be an invoice over due or a contract dispute.
The key to a good working relationship is communication and sometimes that relationship sours due to a lack of speaking clearly.
Once you have tried everything in your companies powers to relieve a burden or debt it is sometimes best to wash your hands of that deal and move into offensive mode.
Burt & associates has been accused of deceptive trade practices or received complaints from our clients debtors. Why? Because we are the quarterback that is given the call with 8 seconds on the clock on a 4th and 3 on the six yard line during the superbowl.
We are often the last step before legal action is taken.
Small Business Face Death Tax Dilemma
About 5,500 estates -- about one quarter of 1% of all estates -- paid death duties in 2009, says Policy Center in Washington. But 44,000 estates could be hit by the tax next year if Congress doesn't change the law before then , And some small businesses have such limited cash flow that they couldn't withstand the hit.
One small business-owner watching the debate is David Castillo who owns a wine store. Castillo says he has been forced to purchase expensive life insurance to ensure that his four children, three of whom he employs, can inherit the business without having to sell it to pay the estate taxes. "There are only four years left on the policy, and then it becomes absurdly unaffordable," says Castillo, who hopes the estate-tax law changes before then.
Uncertainty over the tax gives business owners a chance to take advantage of other estate-planning tools, says Richard Emmons consultant Richard@mymarketingvp.net to business"s on Estate Planning.
One strategy is for owners to give some assets to their children. The gift tax has a $1 million exclusion this year, so a married couple could give their children $2 million tax-free this year. For amounts of more than $1 million per person, the gift-tax rate is 35%, making it a better deal than the estate tax. Another strategy recommended: establishing trusts that let businessmen pass some assets to their heirs tax-free. In one such plan, a business owner would deposit assets in a trust, which pays the owner back over a fixed period. During that time, appreciation of those assets -- which can be substantial -- passes to children tax-free.
Still, such estate-planning tools are beyond the reach of most small business owners. "We don't have that kind of money, we don't have those kinds of assets," Castillo says. "Our net profits aren't millions of dollars. For most small businessmen, the only way to raise liquid assets is to liquidate the business."
Bill Page , who owns a Lumber company in Arkansas, says that while his business is large enough to create trusts to shelter the estate, the tax is still so high that his business will probably have to be sold to pay the "death duties." "It's futile to build a business over 100 years," Page says.
One small business-owner watching the debate is David Castillo who owns a wine store. Castillo says he has been forced to purchase expensive life insurance to ensure that his four children, three of whom he employs, can inherit the business without having to sell it to pay the estate taxes. "There are only four years left on the policy, and then it becomes absurdly unaffordable," says Castillo, who hopes the estate-tax law changes before then.
Uncertainty over the tax gives business owners a chance to take advantage of other estate-planning tools, says Richard Emmons consultant Richard@mymarketingvp.net to business"s on Estate Planning.
One strategy is for owners to give some assets to their children. The gift tax has a $1 million exclusion this year, so a married couple could give their children $2 million tax-free this year. For amounts of more than $1 million per person, the gift-tax rate is 35%, making it a better deal than the estate tax. Another strategy recommended: establishing trusts that let businessmen pass some assets to their heirs tax-free. In one such plan, a business owner would deposit assets in a trust, which pays the owner back over a fixed period. During that time, appreciation of those assets -- which can be substantial -- passes to children tax-free.
Still, such estate-planning tools are beyond the reach of most small business owners. "We don't have that kind of money, we don't have those kinds of assets," Castillo says. "Our net profits aren't millions of dollars. For most small businessmen, the only way to raise liquid assets is to liquidate the business."
Bill Page , who owns a Lumber company in Arkansas, says that while his business is large enough to create trusts to shelter the estate, the tax is still so high that his business will probably have to be sold to pay the "death duties." "It's futile to build a business over 100 years," Page says.
Monday, February 8, 2010
Strategic Planning For Your Business
For the most part, salespeople are not concerned with or committed to corporate initiatives in which they had no input. Their real commitment is to generating sales and earning commission- end of story. If a salesperson falls short of his “new business” quota, for instance, but is above quota with existing customers, in his mind, he is still “hitting his numbers.”Therefore, if you are a sales manager for a business your responsible for translating corporate initiatives into specific department goals, it is imperative that you invest time developing a detailed plan of accomplishment to accompany the quotas you assign. Most importantly, make it a point to involve your sales team in the planning stage. After all, they will be responsible for making the plan work.
You can’t have all the answers and knowledge regarding markets, customers, and products. Involving the people in your business in the planning process can provide you with additional perspective and insight. And, more significantly, their participation in the development of the plan gives them ownership in it which increases their buy-in and commitment to it
You can’t have all the answers and knowledge regarding markets, customers, and products. Involving the people in your business in the planning process can provide you with additional perspective and insight. And, more significantly, their participation in the development of the plan gives them ownership in it which increases their buy-in and commitment to it
Latest Unemployment Figures
The unemployment rate dropped from 10% in December 2009 to 9.7% in January 2010 according to the Bureau of Labor Statistics. The news isn’t as good as it sounds, however. In January 2010, 20,000 jobs were lost when economists had anticipated a gain in jobs.
Employment fell in warehousing, transportation, and construction. However, there was an uptick in employment in retail and temporary help services. The good news is that usually when an increase is seen in temporary help services is seen, it is a leading indicator for a good job picture in the future. There was also an increase in jobs in the health care sector.
The interesting thing is that even with a drop in unemployment, the economy still lost jobs.
Some economists, according to a recent articles think that only 1.5 million jobs will be regained during 2010 and that it may take 3-4 years for the job market to return to anything approaching normal. This recession is truly earning its nickname of the Great Recession. Don”t take a risk on your customers call me today to help your bottom line 469-368-6410
Employment fell in warehousing, transportation, and construction. However, there was an uptick in employment in retail and temporary help services. The good news is that usually when an increase is seen in temporary help services is seen, it is a leading indicator for a good job picture in the future. There was also an increase in jobs in the health care sector.
The interesting thing is that even with a drop in unemployment, the economy still lost jobs.
Some economists, according to a recent articles think that only 1.5 million jobs will be regained during 2010 and that it may take 3-4 years for the job market to return to anything approaching normal. This recession is truly earning its nickname of the Great Recession. Don”t take a risk on your customers call me today to help your bottom line 469-368-6410
4 Secrets of Successful Joint Ventures
Companies that build successful joint ventures follow the same systematic process. Although the costs of forming alliances is inexpensive, the cost of not planning out the partnership is far greater in lost profits and failed relations.
1. Set Clear Goals: Know from the beginning what you want to accomplish. Is it reduced product costs, expanded sales, or market credibility? Your partners’ goals may be different but complementary to yours.
2. Find a Partner: The best partnership is based on a mutual win-win relationship. Take the time to locate a business with an honest interest in joint ventures and a similar corporate culture. If your small business is focused on long-term customer relations and your strategic partner cares about gaining market share quickly, then your two cultures may clash.
3. Plan the Venture: Map out your negotiation tactics and understand the legal aspects of the deal. Keep win-win agreement in mind.
4. Manage the Relationship: Once a winning joint venture is formed the real work takes place. A good alliance is like a marriage. It is built on communication, trust and understanding.
Joint ventures and strategic alliances can be a positive outcome for all parties involved. Take the time to understand the process and your small business will be well positioned into the future.
1. Set Clear Goals: Know from the beginning what you want to accomplish. Is it reduced product costs, expanded sales, or market credibility? Your partners’ goals may be different but complementary to yours.
2. Find a Partner: The best partnership is based on a mutual win-win relationship. Take the time to locate a business with an honest interest in joint ventures and a similar corporate culture. If your small business is focused on long-term customer relations and your strategic partner cares about gaining market share quickly, then your two cultures may clash.
3. Plan the Venture: Map out your negotiation tactics and understand the legal aspects of the deal. Keep win-win agreement in mind.
4. Manage the Relationship: Once a winning joint venture is formed the real work takes place. A good alliance is like a marriage. It is built on communication, trust and understanding.
Joint ventures and strategic alliances can be a positive outcome for all parties involved. Take the time to understand the process and your small business will be well positioned into the future.
8 Small Business Trends
Running a small business requires a focus on the present daily operations. With time restraints looking ahead becomes difficult. However, in order to succeed you need to know what’s ahead to better plan and avert danger. The 21st century presents plenty of changes that will impact your small business in the future. Here are 8 small business trends for the 21st century:
The Small Business Revolution: The face of entrepreneurship is changing from the white middle-aged college educated male to a new class consisting of immigrants, women, baby boomers, and the younger digital generation. These groups are better prepared for success.
The boomers have a vast repertoire of skills and experiences while the youth possess a risk-taking attitude with very few financial commitments. According to the Kauffman Foundation, Americans aged 55 to 64 start a business at the highest rate of any age group—28% higher than the adult average. A growing number of employees will value the path to entrepreneurship continuing the small business revolution. Look for greater political clout and financing for small business.
An Empire of One: Forget the hiring headaches, managing problems, and added paperwork of running a business with employees. According to the Census Bureau, small business without payroll makes up more than 70 percent of America’s 27 million companies, with annual sales of $887 billion.
An empire of one can operate in a low-cost of location such as the home office and be more nimble than larger companies. One-person businesses can take advantage of outsourcing many functions while focusing on core strengths. The empire of one model will be appealing to more and more corporate employees leaving behind big companies with limited pensions and job security. Small businesses built around the empire of one model will be able to weather the perfect talent storm on the horizon.
The Perfect Talent Storm: A fast aging population, a rapid declining pool of younger workers combined with global competition creates the perfect storm for a serious labor shortage. Unlike past labor shortages, this is a global phenomenon impacting workers in many areas and businesses of all types. It will continue for much of the future regardless of economic cycles.
According to the U.S. Bureau of Labor Statistics, the U.S. is heading for a shortage of 3 to 6 million workers by 2012. Immigration provides little comfort with other countries facing similar talent crunches; retaining citizens will be a top priority. This storm means small businesses will have to compete aggressively for talent and learn how to fully engage the hearts and minds of employees.
The Innovation Age: The most important asset that will be fully realized in the future is the 3-pound creative universe in our heads. Our true competitive advantage is our ability to create and execute new business ideas. Although we have mastered the fundamentals of business such as sales or marketing, we have yet to grasp the concept of innovation. Smarter companies will leap ahead with the understanding that innovation is a process dependent system as opposed to a flash of genius.
The Small Business Revolution: The face of entrepreneurship is changing from the white middle-aged college educated male to a new class consisting of immigrants, women, baby boomers, and the younger digital generation. These groups are better prepared for success.
The boomers have a vast repertoire of skills and experiences while the youth possess a risk-taking attitude with very few financial commitments. According to the Kauffman Foundation, Americans aged 55 to 64 start a business at the highest rate of any age group—28% higher than the adult average. A growing number of employees will value the path to entrepreneurship continuing the small business revolution. Look for greater political clout and financing for small business.
An Empire of One: Forget the hiring headaches, managing problems, and added paperwork of running a business with employees. According to the Census Bureau, small business without payroll makes up more than 70 percent of America’s 27 million companies, with annual sales of $887 billion.
An empire of one can operate in a low-cost of location such as the home office and be more nimble than larger companies. One-person businesses can take advantage of outsourcing many functions while focusing on core strengths. The empire of one model will be appealing to more and more corporate employees leaving behind big companies with limited pensions and job security. Small businesses built around the empire of one model will be able to weather the perfect talent storm on the horizon.
The Perfect Talent Storm: A fast aging population, a rapid declining pool of younger workers combined with global competition creates the perfect storm for a serious labor shortage. Unlike past labor shortages, this is a global phenomenon impacting workers in many areas and businesses of all types. It will continue for much of the future regardless of economic cycles.
According to the U.S. Bureau of Labor Statistics, the U.S. is heading for a shortage of 3 to 6 million workers by 2012. Immigration provides little comfort with other countries facing similar talent crunches; retaining citizens will be a top priority. This storm means small businesses will have to compete aggressively for talent and learn how to fully engage the hearts and minds of employees.
The Innovation Age: The most important asset that will be fully realized in the future is the 3-pound creative universe in our heads. Our true competitive advantage is our ability to create and execute new business ideas. Although we have mastered the fundamentals of business such as sales or marketing, we have yet to grasp the concept of innovation. Smarter companies will leap ahead with the understanding that innovation is a process dependent system as opposed to a flash of genius.
Friday, February 5, 2010
Cash IS King
Don't Take "No" for an Answer - Cash is King
“You can survive decreased profits if you have cash flow, but… if cash flow takes a dive, you’re in trouble While most business know the above to be true, most have been told by their financial “partners” that they do not meet the criteria for additional capital, even though their financials are strong and their ability to repay is not in question. The past 18 months demonstrated that even financially healthy companies were hamstrung when it came to accessing capital. Every company should have multiple sources of liquidity – in good times and bad. It is your fiduciary responsibility to be “cash prepared.” Look for ways to optimize your balance sheet and alleviate your cash flow management concerns. Seek out reliable partners that will help you to finance your growth on your terms and, ultimately, work with you to reduce your cost of capital. For example, Burt & Associates allows you to decrease your DSO and improve your financial performance by allowing you to set terms that work for you. Like we said, Cash is King!
“You can survive decreased profits if you have cash flow, but… if cash flow takes a dive, you’re in trouble While most business know the above to be true, most have been told by their financial “partners” that they do not meet the criteria for additional capital, even though their financials are strong and their ability to repay is not in question. The past 18 months demonstrated that even financially healthy companies were hamstrung when it came to accessing capital. Every company should have multiple sources of liquidity – in good times and bad. It is your fiduciary responsibility to be “cash prepared.” Look for ways to optimize your balance sheet and alleviate your cash flow management concerns. Seek out reliable partners that will help you to finance your growth on your terms and, ultimately, work with you to reduce your cost of capital. For example, Burt & Associates allows you to decrease your DSO and improve your financial performance by allowing you to set terms that work for you. Like we said, Cash is King!
Tuesday, February 2, 2010
Commercial Business Loans
When you start a business, you generally have two ways to raise capital: loans and equity contributions. There are some obvious disadvantages to loans. They require you, for example, to pay back the lender whether or not the business is successful, which is not the case with equity contributions. But the advantage of a typical loan is that if your business prospers, the lender is only entitled to an interest return on its loan — not a percentage of the profits or a share in the company that an investor would expect.
Whether you obtain loans from a bank, individuals or other lenders, a number of variables can affect how good or how bad they are for your business. Virtually all of these variables are negotiable: There is no such thing as a “standard loan.” Be sure to negotiate these key issues if you plan to get a loan for your business:
Due date. You need to set a date when the loan is to be repaid. This can be formulated as a lump-sum payment at the end of the term of the loan or as a periodic payment of principal with a final payment. For example, you can agree to borrow $50,000, with entire principal due in two years, or you could agree to repay the principal in 20 equal monthly installments of $2,500. In any event, make sure that the payment schedule is reasonable given your anticipated cash flow. Realize that interest will be charged to you either way.
Interest payments. When a lender establishes an interest rate, it must comply with any applicable state usury laws. (These laws govern how much interest can be charged on a loan.) Often, however, usury laws will not apply to banks. The law may also allow a lender to charge a higher interest rate for business loans than for personal loans (such as consumer credit). The interest payment dates should be clearly defined — the most common method requires monthly interest payments due the first day of each month. You might also try to adjust the timing of your interest payments to match the cash flow patterns of your business.
Loan fees. The lender may charge up-front loan or processing fees. Check these fees carefully, and try to get an estimate as soon as possible to help you evaluate the loan package.
Prepayment. Ideally, you want to be free to pay off the loan at any time before its due date. Make sure that your loan agreement or promissory note gives you this flexibility and try to avoid a prepayment penalty for paying off the loan early.
Defaults. The lender may define a variety of events that will constitute a default on the loan, including failure to make any payment on time, bankruptcy, insolvency and breaches of any obligations in the loan documents. Try to negotiate advance written notice of any alleged default, with a reasonable amount of time to cure the default.
Grace period. Try to get a grace period for any payments. For example, the monthly payments may come due on the first day of each month, but they won’t be deemed late until the fifth day of the month.
Late charge. If the loan includes a fee for late payment, try to make sure that it is a reasonable charge.
Collateral. The lender may insist on a pledge or mortgage of some asset to secure the loan. Under a mortgage (for real property) or a security agreement (for personal property), if you default on the loan, the lender is able to foreclose upon the asset and sell it to repay the money owed to the lender. If you are required to provide security, try to limit the amount you have to give to secure the loan. And make sure that when the loan is repaid, the lender is obligated to release its mortgage or security interest and is required to make any government filings acknowledging this release.
Co-signers and guarantors. A lender may ask for a co-signer or guarantor as a way to further ensure that the loan will be repaid. A co-signer or guarantor runs the risk that their personal assets will be liable to repay the loan. If you ask someone to co-sign the loan with you, you may want to draw up a co-signer agreement to let the person know how you will repay them if you default on the loan.
Attorneys’ fees. The lender will likely insist on a clause that says in the event of any failure to pay on the loan, the borrower will reimburse the lender’s fees and costs in enforcing or collecting on the loan. Try to insert a qualifier that the reimbursement will cover only “reasonable” attorneys’ fees.
Whether you obtain loans from a bank, individuals or other lenders, a number of variables can affect how good or how bad they are for your business. Virtually all of these variables are negotiable: There is no such thing as a “standard loan.” Be sure to negotiate these key issues if you plan to get a loan for your business:
Due date. You need to set a date when the loan is to be repaid. This can be formulated as a lump-sum payment at the end of the term of the loan or as a periodic payment of principal with a final payment. For example, you can agree to borrow $50,000, with entire principal due in two years, or you could agree to repay the principal in 20 equal monthly installments of $2,500. In any event, make sure that the payment schedule is reasonable given your anticipated cash flow. Realize that interest will be charged to you either way.
Interest payments. When a lender establishes an interest rate, it must comply with any applicable state usury laws. (These laws govern how much interest can be charged on a loan.) Often, however, usury laws will not apply to banks. The law may also allow a lender to charge a higher interest rate for business loans than for personal loans (such as consumer credit). The interest payment dates should be clearly defined — the most common method requires monthly interest payments due the first day of each month. You might also try to adjust the timing of your interest payments to match the cash flow patterns of your business.
Loan fees. The lender may charge up-front loan or processing fees. Check these fees carefully, and try to get an estimate as soon as possible to help you evaluate the loan package.
Prepayment. Ideally, you want to be free to pay off the loan at any time before its due date. Make sure that your loan agreement or promissory note gives you this flexibility and try to avoid a prepayment penalty for paying off the loan early.
Defaults. The lender may define a variety of events that will constitute a default on the loan, including failure to make any payment on time, bankruptcy, insolvency and breaches of any obligations in the loan documents. Try to negotiate advance written notice of any alleged default, with a reasonable amount of time to cure the default.
Grace period. Try to get a grace period for any payments. For example, the monthly payments may come due on the first day of each month, but they won’t be deemed late until the fifth day of the month.
Late charge. If the loan includes a fee for late payment, try to make sure that it is a reasonable charge.
Collateral. The lender may insist on a pledge or mortgage of some asset to secure the loan. Under a mortgage (for real property) or a security agreement (for personal property), if you default on the loan, the lender is able to foreclose upon the asset and sell it to repay the money owed to the lender. If you are required to provide security, try to limit the amount you have to give to secure the loan. And make sure that when the loan is repaid, the lender is obligated to release its mortgage or security interest and is required to make any government filings acknowledging this release.
Co-signers and guarantors. A lender may ask for a co-signer or guarantor as a way to further ensure that the loan will be repaid. A co-signer or guarantor runs the risk that their personal assets will be liable to repay the loan. If you ask someone to co-sign the loan with you, you may want to draw up a co-signer agreement to let the person know how you will repay them if you default on the loan.
Attorneys’ fees. The lender will likely insist on a clause that says in the event of any failure to pay on the loan, the borrower will reimburse the lender’s fees and costs in enforcing or collecting on the loan. Try to insert a qualifier that the reimbursement will cover only “reasonable” attorneys’ fees.
Business Spending by Will Rogers 1919
Why don’t somebody print the truth about present economic condition?
We spent years of wild buying on credit everything under the sun, whether
We needed it or not & now we are having to pay for it & howling
Like a pet coon This would be great world to dance in if we didn’t
Have to pay the fiddler
We spent years of wild buying on credit everything under the sun, whether
We needed it or not & now we are having to pay for it & howling
Like a pet coon This would be great world to dance in if we didn’t
Have to pay the fiddler
Raising Capital Though Bad Debt
An important decision for a business wanting to raise capital is that of choosing among the various ways to structure financing. Bankers and investment bankers may offer a number of possibilities besides straightforward bank debt, which is basically a loan that can be a fixed term loan or a revolving line of credit. Other possibilities bankers may offer include convertible debt, which is debt that may be converted into equity at some predetermined price per share. Mezzanine debt, which is senior to equity but subordinate to convertible debt, typically has a term of three to five years and often requires warrants or stock options in addition to substantial interest rates on the notes. Equity financing includes preferred equity and common equity. Preferred equity is stock that has certain preferential rights higher than common equity, which in turn is the sale of ownership of the company that issues the equity. for more information check Burt & Associates
Friday, January 29, 2010
How Price Increases Bad Debt?
It’s harder than ever to get customers to accept price increases, thanks mainly to Alan Greenspan. But you’re making a mistake if you don’t raise prices on a regular basis.
Alan Greenspan is a wonderful guy, and he has my wholehearted support in his battle against inflation. I doubt, however, that he has the same warm feelings about people who share my philosophy on prices. I believe that as a matter of sound business practice, it’s important to raise prices regularly.
Otherwise you’ll be letting your profit margins erode and undermining the value of your company. If you’re not careful, you could wake up one day and discover you’re in serious trouble. At that point you may have no choice but to take the kind of action that will drive your customers crazy.
“I don’t have a choice a small business told me ” We haven’t had a price increase in 10 years. I’ve been giving the staff raises every year, and I haven’t been getting any additional income. Now I’m at a point where I can’t go on without a significant increase. I won’t be able to pay my bills. The place won’t survive.”
Small businesses has my sympathy. It’s never easy to raise prices, and it’s particularly tough to raise them in an environment like this one, thanks mainly to Mr. Greenspan. He’s done such a great job of fighting inflation that most people think prices shouldn’t go up at all. As for big increases, you make them at your peril. There’s simply no way to do it without antagonizing customers and thereby putting your most important relationships at risk.
Faced with such resistance, a lot of businesspeople are tempted to forgo price increases altogether, or at least put them off for as long as possible. If you do either one, however, you’re making a big mistake. Granted, you may not feel the pain for a while. If your sales are going up, you’ll probably be able to take home the same amount of money from one year to the next. As a result, you may not see the risks you’re taking. In the short term, you’ll think you’re doing fine.
But, in fact, two things will be happening. First, your profit margins will be shrinking. Why? Because your costs will be going up. Even in Greenspan’s America, certain costs always rise. It’s what I call “creeping expenses.” Some types of expenses have a life of their own. If you don’t watch them like a hawk, they go up all by themselves. They may even go up if you do keep an eye on them.
In most small businesses, for example, you can count on payroll increases every year. You can expect regular hikes in insurance rates as well, and I’m not talking just about health insurance. The costs of utilities and supplies also have a tendency to rise over time. OK, some things are cheaper these days — basic phone service, for example — and computers let people work more efficiently than before. Nevertheless, your average costs per dollar of sales are going to rise from year to year. They may rise only 2% annually, but compound the increases over 5 or 10 years and eventually you won’t be earning a profit anymore — unless, of course, you raise prices.
Even if you don’t let the problem go that far, however, you’re damaging your business in other ways by not raising prices on a regular basis. For one thing, you’re gradually undermining the perceived value of your services or products. Like it or not, there’s a natural tendency to link quality and price. I’m not saying you always have to charge as much as the most expensive suppliers, but if the gap between your prices and theirs gets too large, customers will start to regard you as the cheap alternative in the market.
At the same time, you’ll be undermining the real value of your business as a whole. That’s a point most small-business owners miss. They look at the company only as a source of income. They forget that it’s also a major asset, probably their most valuable one, and — like any asset — it needs to be maintained.
That means, among other things, making sure the company has strong profit margins — as good as or better than the rest of the industry’s margins. If you let your margins erode, you’re going to have trouble when you try to sell the business. Indeed, you may not be able to sell it at all.
It’s sort of like selling a house. If the place needs a new roof, buyers will discount the price accordingly, or they’ll look for a house that doesn’t need one. By the same token, business buyers are going to shy away from a company with weak margins, especially if they’re weak because prices are too low. Who wants to buy a business and immediately start raising prices? Even under the best of circumstances, it’s tricky to maintain a customer base through a change of ownership. It’s almost impossible when you have to begin by doing something that will antagonize every customer you have.
So I’m sorry, Mr. Greenspan, but I’m going to keep raising my prices, and I’d advise most other businesspeople to do the same. The increases don’t have to be big ones. In this economy they can’t be. I have to fight for every increase I get, but I always insist on raising the price at least a little. I have to admit, however, that there is one group of people I’d encourage to ignore my advice and give Mr. Greenspan a hand in his fight against inflation: my suppliers.
Alan Greenspan is a wonderful guy, and he has my wholehearted support in his battle against inflation. I doubt, however, that he has the same warm feelings about people who share my philosophy on prices. I believe that as a matter of sound business practice, it’s important to raise prices regularly.
Otherwise you’ll be letting your profit margins erode and undermining the value of your company. If you’re not careful, you could wake up one day and discover you’re in serious trouble. At that point you may have no choice but to take the kind of action that will drive your customers crazy.
“I don’t have a choice a small business told me ” We haven’t had a price increase in 10 years. I’ve been giving the staff raises every year, and I haven’t been getting any additional income. Now I’m at a point where I can’t go on without a significant increase. I won’t be able to pay my bills. The place won’t survive.”
Small businesses has my sympathy. It’s never easy to raise prices, and it’s particularly tough to raise them in an environment like this one, thanks mainly to Mr. Greenspan. He’s done such a great job of fighting inflation that most people think prices shouldn’t go up at all. As for big increases, you make them at your peril. There’s simply no way to do it without antagonizing customers and thereby putting your most important relationships at risk.
Faced with such resistance, a lot of businesspeople are tempted to forgo price increases altogether, or at least put them off for as long as possible. If you do either one, however, you’re making a big mistake. Granted, you may not feel the pain for a while. If your sales are going up, you’ll probably be able to take home the same amount of money from one year to the next. As a result, you may not see the risks you’re taking. In the short term, you’ll think you’re doing fine.
But, in fact, two things will be happening. First, your profit margins will be shrinking. Why? Because your costs will be going up. Even in Greenspan’s America, certain costs always rise. It’s what I call “creeping expenses.” Some types of expenses have a life of their own. If you don’t watch them like a hawk, they go up all by themselves. They may even go up if you do keep an eye on them.
In most small businesses, for example, you can count on payroll increases every year. You can expect regular hikes in insurance rates as well, and I’m not talking just about health insurance. The costs of utilities and supplies also have a tendency to rise over time. OK, some things are cheaper these days — basic phone service, for example — and computers let people work more efficiently than before. Nevertheless, your average costs per dollar of sales are going to rise from year to year. They may rise only 2% annually, but compound the increases over 5 or 10 years and eventually you won’t be earning a profit anymore — unless, of course, you raise prices.
Even if you don’t let the problem go that far, however, you’re damaging your business in other ways by not raising prices on a regular basis. For one thing, you’re gradually undermining the perceived value of your services or products. Like it or not, there’s a natural tendency to link quality and price. I’m not saying you always have to charge as much as the most expensive suppliers, but if the gap between your prices and theirs gets too large, customers will start to regard you as the cheap alternative in the market.
At the same time, you’ll be undermining the real value of your business as a whole. That’s a point most small-business owners miss. They look at the company only as a source of income. They forget that it’s also a major asset, probably their most valuable one, and — like any asset — it needs to be maintained.
That means, among other things, making sure the company has strong profit margins — as good as or better than the rest of the industry’s margins. If you let your margins erode, you’re going to have trouble when you try to sell the business. Indeed, you may not be able to sell it at all.
It’s sort of like selling a house. If the place needs a new roof, buyers will discount the price accordingly, or they’ll look for a house that doesn’t need one. By the same token, business buyers are going to shy away from a company with weak margins, especially if they’re weak because prices are too low. Who wants to buy a business and immediately start raising prices? Even under the best of circumstances, it’s tricky to maintain a customer base through a change of ownership. It’s almost impossible when you have to begin by doing something that will antagonize every customer you have.
So I’m sorry, Mr. Greenspan, but I’m going to keep raising my prices, and I’d advise most other businesspeople to do the same. The increases don’t have to be big ones. In this economy they can’t be. I have to fight for every increase I get, but I always insist on raising the price at least a little. I have to admit, however, that there is one group of people I’d encourage to ignore my advice and give Mr. Greenspan a hand in his fight against inflation: my suppliers.
Thursday, January 28, 2010
Six Components at Burt & Associates
The Six Components of Leadership
There are six main factors that contribute to successful leadership, including vision, motivation, strategy, faith, values and responsibilities at Burt & Associates in Dallas Texas.Vision is a picture of the future that a leader wants to achieve, while motivation involves getting commitments from others to share that vision. Leaders must outline a strategy to achieve their visions and have a firm faith that they can overcome obstacles in reaching their goals. Values, with moral values coming ahead of economic ones, are important to make clear to employees at Burt & Associates in Dallas Texas Finally, leaders must take responsibility for any mistakes that occur on the way to achieving a vision.
There are six main factors that contribute to successful leadership, including vision, motivation, strategy, faith, values and responsibilities at Burt & Associates in Dallas Texas.Vision is a picture of the future that a leader wants to achieve, while motivation involves getting commitments from others to share that vision. Leaders must outline a strategy to achieve their visions and have a firm faith that they can overcome obstacles in reaching their goals. Values, with moral values coming ahead of economic ones, are important to make clear to employees at Burt & Associates in Dallas Texas Finally, leaders must take responsibility for any mistakes that occur on the way to achieving a vision.
Wednesday, January 27, 2010
8 Strategies to Improve Your Business Cash Flow
1. Social networking: The ‘free’ technology that’s anything but
2. Web Surfing: It’s costing corporate America $63 billion each year
3. Laptops and smartphones: These devices lead to 85% of companies having a security breach
4. Easy-to-decipher passwords: Sloppy habits are putting sensitive data at risk?
5. File-sharing tools: These are common threats that lead to large cash flow drains
6. IT’s policies on departing employees: Prevent them from wreaking havoc
7. Common office equipment: Overlooked technology that puts sensitive data at risk
8. Texting or talking behind the wheel: Lawsuits are skyrocketing and employers aren’t fairing well
2. Web Surfing: It’s costing corporate America $63 billion each year
3. Laptops and smartphones: These devices lead to 85% of companies having a security breach
4. Easy-to-decipher passwords: Sloppy habits are putting sensitive data at risk?
5. File-sharing tools: These are common threats that lead to large cash flow drains
6. IT’s policies on departing employees: Prevent them from wreaking havoc
7. Common office equipment: Overlooked technology that puts sensitive data at risk
8. Texting or talking behind the wheel: Lawsuits are skyrocketing and employers aren’t fairing well
Information from U.S. Bankruptcy Court
Have you ever needed information on a bankrupt business account but didn’t know where to turn? Don’t feel bad, most business professionals don’t either. The answer, however, is as close as your phone and often a lot quicker than searching the Internet, pulling up and searching bankruptcy websites you know of, waiting for the site to load, etc.
Each of the 91 bankruptcy court districts has what they refer to as an automated Voice Case Information System phone number or VCIS. Most are toll free. Simply call that number, press 2 and enter the case number (or enter the complete and accurate business name of your commercial account ) and presto, a recording will provide you with the business debt,attorney’s name and phone number, petition filing dates, upcoming hearing dates and much more. Try it and see how easy it is.
Each of the 91 bankruptcy court districts has what they refer to as an automated Voice Case Information System phone number or VCIS. Most are toll free. Simply call that number, press 2 and enter the case number (or enter the complete and accurate business name of your commercial account ) and presto, a recording will provide you with the business debt,attorney’s name and phone number, petition filing dates, upcoming hearing dates and much more. Try it and see how easy it is.
Commercial Business Watch Out on Bank Fees
Usually the more a customer pays, the more service or product is purchased. Not so with opportunistic banks who psych out businesses with computerized fee traps, a good process is
always look at your business statement to see if there are any hidden fees
always look at your business statement to see if there are any hidden fees
Business Bankruptcy Protection
Many smaller commercial businesses may feel helpless when they find themselves low on the list of creditors when a large businesses files for bankruptcy protection. But smaller businesses do have recourse to protect themselves in the form of a reclamation demand. Such a reclamation provides a business the right to demand goods, which had been shipped to a customer, be returned if the customer files for Chapter 11 within a specific time period of receiving the goods. If the goods can’t be returned, the seller’s unsecured claim may be converted into an administrative expense priority claim. This move gives the claim a higher priority than ordinary unsecured creditors’ claims. Further, businesses don’t even have to wait for the bankruptcy filing in order to file a reclamation demand, which can be filed if evidence is presented that the customer is officially insolvent.
Thursday, January 21, 2010
Business cry credit cards fees too high
Credit industry experts said customers' purchasing habits are dramatically different than just a decade ago as customers trend away from using cash.
In turn, many consumers have complained about the high interest rates that credit card companies charge, and now, some businesses that accept credit cards said the rates they pay to accept cards are unfair.
"People were still using cash more often -- using cash or checks for smaller purchases, like under $5 -- and, now, we don't think anything of using our card
Merchants must pay a fee every time someone swipes a card, which can have an impact on the businesses' bottom line. small businesses feel it most and have the least ability to do anything about it.
"Small businesses don't have a lot of leverage, or are (not) in a position to push back on these companies fmf oil is one of those small businesses. Company president john davis said he is not at all happy about the credit card processing fees his company has to pay with every transaction -- both a percentage and fixed fees. "They're actually making more money on a gallon of gas than we are," davis said. Davis has circulated petitions at his convenience stores throughout the state as part of a larger effort by a retail industry group to support congressional action that would increase the transparency of the fee structures and give retailers more power to negotiate. "They write the rules, you either take it or leave it and our customers demand we take it," Davis said.
The credit card industry sees it differently, responding to an inquiry by issued in a statement: "Retailers today receive tremendous benefits from accepting electronic payments, including guaranteed payment, the potential for increased sales, faster checkout times, as well as greater convenience and security -- all at a fair price. The petition drive is part of longstanding and failed attempts by retailers and their trade associations, who are no longer content with paying their fair share, to pad their profits by shifting their normal cost of business onto consumers."
The petition drive that at FMF oil locations around the state continues until Wednesday, after which time the signatures will go to a national trade group that will forward them to Congress.
For other information like this, visit Burt & Associates blog
In turn, many consumers have complained about the high interest rates that credit card companies charge, and now, some businesses that accept credit cards said the rates they pay to accept cards are unfair.
"People were still using cash more often -- using cash or checks for smaller purchases, like under $5 -- and, now, we don't think anything of using our card
Merchants must pay a fee every time someone swipes a card, which can have an impact on the businesses' bottom line. small businesses feel it most and have the least ability to do anything about it.
"Small businesses don't have a lot of leverage, or are (not) in a position to push back on these companies fmf oil is one of those small businesses. Company president john davis said he is not at all happy about the credit card processing fees his company has to pay with every transaction -- both a percentage and fixed fees. "They're actually making more money on a gallon of gas than we are," davis said. Davis has circulated petitions at his convenience stores throughout the state as part of a larger effort by a retail industry group to support congressional action that would increase the transparency of the fee structures and give retailers more power to negotiate. "They write the rules, you either take it or leave it and our customers demand we take it," Davis said.
The credit card industry sees it differently, responding to an inquiry by issued in a statement: "Retailers today receive tremendous benefits from accepting electronic payments, including guaranteed payment, the potential for increased sales, faster checkout times, as well as greater convenience and security -- all at a fair price. The petition drive is part of longstanding and failed attempts by retailers and their trade associations, who are no longer content with paying their fair share, to pad their profits by shifting their normal cost of business onto consumers."
The petition drive that at FMF oil locations around the state continues until Wednesday, after which time the signatures will go to a national trade group that will forward them to Congress.
For other information like this, visit Burt & Associates blog
Tuesday, January 19, 2010
Do your Research
Before filing a lawsuit against a commercial account account, there should be a chance for recovery, otherwise it would be a waste of time and money to try to collect on that old accounts receivable. A creditor should obtain as much information as possible, not just from its credit application, but it should also conduct a search for tax liens, review a company’s corporate annual reports, etc. before agreeing to file suit against the debtor for an old balance. Using Internet search engines and services to obtain the latest information on a firm as well as reviewing the above information, just may save you, the commercial collection agency and the attorney handling the potential lawsuit time and money.
Monday, January 18, 2010
Inflated Accounts Receivables
Business deductions, whether valid are invalid, can be a nightmare to those who deal with commercial accounts receivables. Often such deductions as discounts , pricing and even sales tax can sit on an A/R ledger for long periods of time until they are either credited or paid back by the business customer. There are dozens of different kinds of deductions that customers take. In fact, numerous surveys have shown that more than 80% of the time deductions are valid and should be credited promptly. Some companies have systems in place that allow for a quick resolution of these items, yet in other firms (and it often varies by industry not necessarily business to business ) deductions can sit on a company’s books for as long as six months or more. The result? Inflated accounts receivables that in the long run can cost your company money. If a company’s credit line is, even in part, tied to it’s a/R, then the inflation of this current asset could adversely affect the amount that company can draw against–a thought to consider when evaluating your overall A/R status. for more information on tips check Burt & Associates in the blog section.
Thursday, January 14, 2010
Taking Control of your Accounts Receivables
Particularly in tough economic times, it’s more important than ever to keep control your accounts receivable lest they start to control you. As such, it’s important to always have in place clear credit and commercial collection policies in order to keep accounts receivables from getting out of hand. Look at your A/R listings to review your customers, their credit limits, payment terms, what their credit history is like and when’s the last time their credit limits were reviewed. With that information, credit and financial executives are in a better position to decide who to extend credit to and how much. Also, to better gauge risk, always look at a debtors’ bank and credit references, employee information and financial data. Also look at a firm’s history, who its customers are, what the competition is and how the firm is poised to face current economic conditions, especially in these times of dampened business credit markets.
Wednesday, January 13, 2010
Can you tell if a business account is to far gone
In some instances, you can tell if a company might be irreparable. If a troubled company no longer has an addressable market that is ready to embrace its products or services, that company may be to far gone to turnaround of commercial collections. Moreover, if the company has no clear understanding regarding why it needs to clearly communicate its product’s return to the marketing place or if it can not quantify it product’s value, the hope of any “quick fix” for that troubled firm may be beyond consideration. And just as important an indicator is if the leadership of a troubled firm does not have the ability to become systematic and entrepreneurial-minded. Trying to fix such a company may be throwing good money after bad let Burt & Associates help you with the answers you need in troubles time so that you don”t have to lose your money on bad debt.
Monday, January 11, 2010
6 quick commercial collection tips
1.- One of the most important relationships principles between sales & commercial credit is trust
2.- When trust is missing it may be easy to misinterpret comments or wrong motives to others
3.- It is essential that sales & commercial collections understand eash others agendas
4.- Expanding accounts receivables and minimizing past due commercial collections
5.- Develop clear policies and procedures to turn past due commercial accounts in to www.burtcollect.com for collection
Thursday, January 7, 2010
Solving Business Bad Debt Problems
If you already have a business and have operated it successfully – congratulations! You know you have had to overcome many obstacles to succeed. But as time passes and conditions change your business may need to adjust – and you may be seeking new ideas, new solutions to help you with commerercial collection bad debtYou may need: to develop new markets; new marketing strategies; to update and organize and your collection procedures; to change your legal structure; – or any other of a number of different issues which arise periodically.
At times like these,burt & associates can help you – and its all free!
Come and visit www.burtcollect.com for assistance, call jerry curtis today 1-877-740-7839
Wednesday, January 6, 2010
TO CASH OR NOT CASH BUSINESS CHECKS
If you receive a payment from a debtor on business account and the words “acceptance of this check denotes payment in full” should you cash the check? The answer differs depending on the state law and the facts of the situation. One of the main issues in determining whether a satisfaction of a debt exists is whether there is a “bona fide” dispute between the parties regarding the amount owed. Generally, when there is a bona fide dispute between the parties as to the amount of a balance owing, one party can offer to pay a specific amount in full payment of that debt. The other party can accept the offer in cash or check — which is referred to as “accord and satisfaction”. This is essentially like a new contract. It should be noted that a dispute does not have to be based on a solid foundation but there must be some justification to it.
Note, however, that a business who receives such a check may not simply cross out the language and write “under protest” in order to get around the “accord and satisfaction” concept.
It should also be noted that while some companies process thousands of checks, nevertheless, some courts have held that when a creditor’s accounting department cashes a debtor’s check in ignorance that it was an attempt to “accord and satisfaction”, a subsequent timely protest by the creditor defeated a finding of that “accord and satisfaction”. In some states, however, where a claim is disputed and a check is offered for settlement, the retention of a check constitutes an “accord and satisfaction” settlement regardless of any protest by the creditor. Also, under Uniform Commercial Code 3-311 a creditor has the right to revoke an “accord and satisfaction”.
Note, however, that a business who receives such a check may not simply cross out the language and write “under protest” in order to get around the “accord and satisfaction” concept.
It should also be noted that while some companies process thousands of checks, nevertheless, some courts have held that when a creditor’s accounting department cashes a debtor’s check in ignorance that it was an attempt to “accord and satisfaction”, a subsequent timely protest by the creditor defeated a finding of that “accord and satisfaction”. In some states, however, where a claim is disputed and a check is offered for settlement, the retention of a check constitutes an “accord and satisfaction” settlement regardless of any protest by the creditor. Also, under Uniform Commercial Code 3-311 a creditor has the right to revoke an “accord and satisfaction”.
Tuesday, January 5, 2010
KEEP COMMERCIAL ACCOUNTS FLOWING
- Do Your Homework Before Doing Business: This is cold comfort for those struggling to squeeze a dime out of currently delinquent customers but good practice for new ones. Forward-thinking accountants can check the credit rating of a business through our burt risk scoring system while also checking references.
- Set More Favorable Credit Terms: Stacking the deck in your favor is smart practice. One strategy is to require credit card payments; that way, the payments are predictable (i.e. you’re in control) unless the customer severs the relationship.
- Explain Credit Terms Upfront: let your customer know that you’ll charge late fees after X number of days and then send it to commercial collection agency after Y number of weeks will be more motivated to pay on time. And requiring payment within 15 days instead of 30, offering incentives for early payment, can ensure that you’re at the top of the list for who gets paid first.
- Use the “Velvet Hammer” Approach: Some business experts insist that treating customers as parnters can go a long way toward putting your company’s name at the top of the list when it comes time to write checks. Some even say that tacking on interest only hurts the relationship and may even backfire.
If you’re still struggling to get paid using these methods, go to www. tipsforyourbottomline.com provides some tips on how to get paid.
WHY IS BUSINESS DEBT UP
US Postal Service
reported a net loss of nearly $730 million for October and November, its first two months of its new fiscal year, as mail volume fell 4% from the previous year’s figures. Postal authorities are anticipating a net loss for its current fiscal year of $7.8 billion. This compares with a net loss of $3.8 billion for fiscal 2009. Does this affect our business debt if these numbers are this high.
COMMERCIAL COLLECTING THE RIGHT WAY
HOW TO DO COMMERCIAL COLLECTING THE RIGHT WAY
Sometimes it means just doing
whatever you are supposed to do with a positive attitude. Other times it might mean going out
of your way or making an extra effort to help a commercial customer. Anybody can be okay – average. It
is the excellent people and the excellent companies that are willing to do the extra things
necessary to not have just satisfied customers !
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