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home | Collection Management | Collection Management Archives

Collection Management continued

Displaying Matches 47 thru 61 of 148 Found. BACK NEXT

Avoiding Mistakes
Even though it has been years since this credit manager was a full-time collector, she tries to make at least a dozen collection calls a day. In particular, she tries to handle some of the more seriously delinquent accounts personally to make certain that the right amount of pressure is being brought to bear to motivate customers to remit payment as quickly as possible. Her goal is to be assertive but not aggressive, and to be insistent and persistent about getting paid quickly. Here's an interesting situation she ran into that taught her some good lessons about thoroughness in collecting, along with the three key principles of collecting that she became "reaquainted" with. . . . keep reading

Entrepreneur: Hardball Collections Pay Off
One very successful entrepreneur we know acknowledges that he owes his effectiveness in managing credit and collections to one supplier he had soon after he started his business. "I was late paying him, and he put me on COD for six months, no exceptions," he remembers. "And since this was a supplier I relied on heavily, I was forced to visit the plant weekly to pick up material and pay by check. Even if the supplier had been willing to extend 10-day terms to me, I would have jumped at it. It was a real inconvenience to be on COD. Now he is in the position of implementing his own collection and credit philosophy and he learned a lot from the past. Here's his strategy and how it works...

the surprising way he handles initial credit and personal guarantees (we've never seen a policy quite like this before!)
learn how his policy on collections works.
and the results, in terms of sales and DSO.

. . . keep reading

Force Majeure Clauses
This case study looks at the effect of a force majeure clause in a purchase order. Does a sudden war allow the customer to simply cancel a custom-made order after it's already been ordered and finished? What do force majeure clauses mean and how do they work? . . . keep reading

Contractual Conditions and Collections
by Rene Sacasas, J.D.
This legal case examines the concept of conditions in contracts, and explains the three major forms of conditions:

conditions precedent,
conditions subsequent, and
conditions concurrent.

. . . keep reading

A Business Improvement Team Revamps Collections
When collection costs topped $30 million on $1 billion in revenue, one Northeastern utility created a business process improvement (BPI) project team to thoroughly review the collections process and make recommendations for improvement. The eight-person team was composed of both management and union employees and included representatives from Collections, Information Systems, Finance, Call Center, and field operations.

Meeting behind closed doors virtually full-time for 22 weeks, the team's first goal was to create a process vision, which was: "To create a proactive, cost-effective process designed to reduce write-offs through a consistent and targeted approach by evaluating customer credit risk and performing timely collections." Also . . .

What motto the team developed and what it's four elements are
What the composition was of the focus groups they created
The three major flaws in their existing collections process uncovered by the focus groups
The key recommendations of the focus groups, and how they implemented them.
The three components of their Credit Matrix Redesign (a new scoring system)
The key recommendations and solutions, including their high-risk collection and special needs teams

. . . keep reading

Helping Contractors Avoid Collection Problems
Difficult as they are, the collection problems of construction industry suppliers like Geneva Rock can pale in comparison to the problems emcountered by construction contractors themselves. The owners of small construction businesses often feel uncomfortable asking prospective clients for credit information. "However, it's essential for entrepreneurs and small companies to do this because they need to be paid on time if they intend to stay in business," observers one credit manager who often counsels his contractor customers on collection problems and tactics. He offers some simple tips to assure prompt payment:

how and why you should create your own credit report
what six questions you should ask trade references
three questions to ask a bank reference
final considerations on how to make the decision to sell on open credit or not, and the possible alternatives if you don't think the customer is qualified for of open credit

. . . keep reading

CFO Discusses Cleaning Up a Poor Billing and Collections Culture
"When I first arrived at this company three years ago, I was shocked at the casual attitude about invoicing," recalls one credit manager we know. "Worse than that, I discovered that our chief customer, a federal agency, had not been billed for thousands of dollars of legitimate expenses incurred years before. We now invoice its clients by the second or third working day of the month. The faster you get them out, the faster they are paid." . . . keep reading

Who Should You Meet When Visiting a Customer? That Depends on the Size of the Company
When considering who to meet with on a customer visit, one credit manager know aims to meet with entirely different people depending on both the size of company and how they're paying their bills. Here's his strategy. Also covers his strategy when he's asked for advice, and how he follows up after such meetings. . . . keep reading

Interactive Intelligence Acquires Latitude Software
INDIANAPOLIS and JACKSONVILLE, Fla. -- Interactive Intelligence (Nasdaq: ININ), a global provider of unified IP business communications solutions, has acquired Global Software Services, Inc., doing business as Latitude Software, a privately-held provider of debt collection software and services. . . . keep reading

Information: the Key to Collections
Environmental Mechanical Contractors Inc. (EMC) has had no write-offs for the last two years. None. There's no magic formula for this outstanding record, insists Paul Bloemer, controller of this Olathe, Kansas, company, which employs about 60 and operates mostly in Kansas and Missouri but is occasionally invited to follow a general contractor to other states. The reason EMC's $10 million in annual sales are not diluted by uncollectables is substantially due to a three-part program.

Just how conservative they are in accepting contracts
the importance of understanding their general contractor and sometimes end-user (owner) customers' policies
Their attitude towards the filing of liens - their strategy and thought process on this construction industry tool
The point at which diplomacy ends and they step up collection efforts to a more serious level

. . . keep reading

Goal-Oriented Collection Strategies
If you're wondering how to improve collections--and who isn't--Ron Thorn has a relatively simple answer: Set monthly goals and work like crazy to achieve them. As he admits, however, that simple answer breaks down into fairly detailed procedures. Learn what Thorn's detailed processes are and why he uses them in this article. . . . keep reading

Separate Job Accounts Facilitate Contractor Collections
"Many distributors don't even know where the materials they're selling are going," observes Credit Manager Russell Bye of Judd Supply Company, a Coon Rapids, MN, electrical materials supply contractor. "That means they have no mechanic's liens or bond rights."

This article discusses the merits of separate job accounts, in comparison to regular accounts, which are not protected by liens or bonds and which involve materials subcontractors purchases to restock inventory for use on a number of small jobs.

What specific information Judd asks of its subcontractors to determine risk and set credit limits.
How often they check aging reports
Why collection follow-up is important from a lien or bond rights standpoint
How and why Judd interfaces with both general contractors and owners, as well as subcontractors, on payment issues, and the advantages of this strategy
Unique ways Judd educates their subcontractor customers

. . . keep reading

When Date Drives the Start of Statute of Limitation Discrimination in an Equal Credit Opportunity Act lawsuit?
This legal case study explores a situation in which an individual believes he was rejected for a mortgage because of discrimination. He filed suit under the Equal Credit Opportunity Act. The bank claims he was rejected because of shaky credit, and also claims his two-year statute of limitations to file an action are up. The applicant said he never received notice till later, so he's within his two year period. Who's right? . . . keep reading

The Problem With Post-Dated-Check Payment Plans
A customer who was experiencing cash-flow problems recently proposed a payment plan that called for working down the $10,000 past due by $2,000 a month. The credit manager was reluctant to accept this relatively long payout, but decided to approve the plan provided the customer send him five post-dated checks to cover the balance due.

The customer flatly refused to do so, noting that another vendor to whom they had sent a series of post-dated checks deposited all of the checks at the same time--and that this was what caused the company's cash-flow problem to begin with.

So, is this correct? Can a bank honor post-dated checks before their date? Learn about changes to the Uniform Commercial Code (UCC) with regard to this issue. Also, what alternative might you use if you decide against the post-dated check strategy? . . . keep reading

Eight Steps An Collection Expert Uses When Faces with an "Emergency AR Cleanup"
"Over the past 20 years, I've encountered numerous companies plagued with accounts receivable problems in need of 'emergency cleanup activity,'" says the president of one national collection agency. "As a result, I've developed the following format as a fast, effective remedy that is applicable, with certain variations, to every type of business." . . . keep reading

Displaying Matches 47 thru 61 of 148 Found BACK NEXT

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