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

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.

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

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.

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.

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

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

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

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.

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.

Salesman Personalities - Burt & Associates Videos

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.

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

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”.

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 !

Burt Risk Score

With many studies showing that the older an invoice gets, the harder it is to collect on a past-due commercial account balance, you can improve the likelihood of collecting on a past-due debt by adopting a more aggressive collection policy toward higher-risk accounts. One strategy is to prioritize high dollar/high risk accounts with burt risk score when allocating collection-department resources. In addition, a burt & associates scoring strategy can be used to make more calls on commercial accounts per day that will allow you to go deeper into your account base. In conjunction with this, it is also important to develop a letter correspondence strategy on all accounts. By doing so, you will be able to maximize your attention to dealing with high-risk dollars first.