Debt Collecting Q & A - Issue 5Written by Jim Finucan
Editor: The following article is offered for free use as long as  Resource Box at end is included in release.Debt Collections Q & A – Issue 5 By Jim Finucan © Tiare Publications 391 words DEBT COLLECTIONS Q & A - #5 Jim: My question is simple. I don’t like to mess around so I just hand my delinquent accounts over to an attorney who sues client right away. I either get a judgment or they pay just before court date. Why doesn’t everyone do it this way? Barry Ranken, OH Barry – Your approach is effective and often becomes last resort after several attempts have been made to reconcile a delinquent debt. But it’s important to decide how long you want to allow a delinquent debt to remain on books before you turn it over to a lawyer. Do you treat each situation same? i.e. do you wait same number of days? Do you send same number of notices no matter what situation? Do you send debtor a warning letter letting him know this will go to an attorney if not paid by such and such a date? Is your attorney a collection specialist who is taking steps to collect bill before moving forward with a court date? I recommend adopting a specific procedure before you turn your attorney loose on debtor. One size doesn’t necessarily fit all. There are times that require understanding debtor’s problem;situations that might work themselves out if you waited just a little longer. At worst a few phone calls would let client know you are genuinely concerned about their success and are interested in helping them. This understanding approach cements a relationship and can result in years of customer loyalty.
| | Recouping losses and Cutting ExpensesWritten by Mark Askew
Many businesses go under simply due to a combination of high overhead costs, taxes, poor investment strategies and failure to recoup losses. To ensure your business will survive into next decade consider ways to reduce costs and losses while recovering revenue gains. Cutting Overhead Costs Among seemingly necessary perks of networking is traditional business dinner. These however can be quite expensive costing host as much as $1500 depending on restaurant and party dining. Here is where enormous costs can be cut. Consider reducing frequency of dining by combining parties on one or two nights a year. To accomplish your purpose schedule a day for in-depth business discussions shortly thereafter. Select restaurants that offer quality cuisine and excellent service at less cost. Some restaurants offer a discount depending on size of party. Mailing and Shipping Apply same principle when giving gifts. Wholesale bulk purchases can reduce costs considerably. Apply for membership at a wholesale warehouse. Buy items from suppliers offering free shipping. Reduce mailing and shipping costs by opting for a more economical postal/carrier. Ship by priority mail rather than overnight or non-priority where possible. Reduce package size and weight to lower costs. Man Power Opt for less expensive man-power costs by reducing work time when using temporary employment services. Say good bye to costly business relationships. Often these relationships come about by referring a friend of a friend to a friend. These ‘friend of friend’ business favors can leave you holding more expensive bag. Is their presence, product or service crucial to your business? Will network relations remain intact without them? Can you reduce costs significantly once these ‘friends of friends’ are eliminated? If answer is yes don't hesitate to end a costly relationship for a more affordable one. After all, once a business goes under so goes friend. Your business is of greater priority. Hang on to it.
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