lemon remodeling wheaton golden city remodeling summit remodeling winnetka building an in law addition 500 square foot addition crystal lake .. Chicago Drug testing

Collect that Debt - Your Business Depends on it

The efficiency of debt collection is the difference between a business that will succeed and a business that closes up.

If you do not have control of your debt collection then you will eventually fail. All businesses that grant credit will be faced with the problem of bad debt at some stage. The best way to deal with bad debt is to have a good debt control system in place.

There are three types of bad debt:

  • Can pay.
    This is where your debtor can pay but will drag out non-payment as long as possible. They do intend to pay but only at the last moment.
  • Can't pay.
    This type of debtor have no means of paying the debt either momentarily or ever. They are not necessarily avoiding payment but do not have the means to do so.
  • Won't pay.
    This type of debtor is the worst. They will try to get away with not paying, know the debt collection routine and will not pay until the matter goes either to court or through a debt collection agency.
  • The solution to this is to get your money when it falls due or have a collection procedure that does not let your debtors get away with anything. Once you stop chasing the money that is due to you the amount owing to you will increase. The longer you allow a debt to remain unpaid, the less chance you have of recovering it.

    There are three ways to collect debt:

  • By yourself.
    This is the least costly method and involves phoning the debtor, sending letters and as a last resort, going to court to have the debt paid.
  • By a lawyer.
    This involves having your lawyer send letters of demand before it is taken further. A fee will be charged dependent on how long it takes for the debt to be recovered. If going to court is involved and your debtor is forced to pay you through a court order your legal fees could be recovered. However if not, then you will have to cover the court costs as well.
  • Debt collection agencies.
    These are firms such as Baycorp, who specialise in the collection of debts. A percentage of the amount collected is taken as a fee. If the debtor does not pay the debt it will usually affect their personal credit rating.

  • Copyright 2005 StartRunGrow
    http://www.startrungrow.com

    StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.

    In The News:

    Want to Grow Your Business? Make an Irresistible Offer

    My clients and many of my readers are small and... Read More

    Advertising - For Small Businesses (Part 2)

    How to do itPeople skim through newspapers and magazines and... Read More

    Small Business Security No Passing Fad

    How careful are you with the data you collect from... Read More

    Get Out Of The Rut And Back On the Track

    Do you sometimes find yourself just going "through the motions"... Read More

    Smart PR Tactics for Small Businesses

    Small businesses need Public Relations, possibly more than large corporations,... Read More

    Starting a Pressure Washing Business

    Are you thinking of starting a small pressure washer business... Read More

    10 Ways to Start a Business on a Budget

    If you've been thinking about starting a business, but are... Read More

    Electronic Franchise Disclosure and E-Signature Future for Investors

    It has been discussed allowing Franchising companies to electronically disclose... Read More

    11 MONSTROUS Small Business Marketing Mistakes and How To Avoid Them

    Increase your profit potential by identifying ? and avoiding ?... Read More

    Local Search and Internet Yellow Pages - A Whole NewVocabulary for Small Businesss

    Buyers want both online and local information about where to... Read More

    The Inside-Out Business Plan? -- Your Small Business Plan in 10 Easy Questions

    Writing a business plan for your Solo Entrepreneur business doesn't... Read More

    How to Raise Your Fees and Thrill Your Customers

    Think the best way to get more customers is to... Read More

    Pressure Washing and Hospital Accounts

    Most pressure washing companies never look into some of the... Read More

    Bringing Home the Bacon

    In general, all of us know how to accomplish the... Read More

    Truck Wash Business Case Study

    Often smart entrepreneurs look for out of the way businesses,... Read More

    Alliances: Drawing The Line

    How far can you go based on your relationship with... Read More

    Beating the Small Business Cash Flow Blues

    Small business owners can relieve a lot of their own... Read More

    Franchise Territories for Mobile Businesses; Why Limitations

    In franchising an individual desirous of their own business will... Read More

    Cleaning Grain Silos, Towers, Containers, and Combines

    If you run a pressure washing company in a rural... Read More

    Concrete Cleaning Discussed at World of Concrete Expo 03

    If you are in the pressure washing business and are... Read More

    More Rules for Franchising?

    The FTC- Mighty Federal Trade Commission has unilaterally decided to... Read More

    Small Business Debt Collection Laws

    In your small business debt collection laws will eventually become... Read More

    Small Business Ideas - Your Image Can Lose You Business

    What image do you and your people portray to your... Read More

    Find Your Niche & Follow It - Part 1

    In this series of articles I'm going to show you... Read More

    What is your Motto?

    Company mottos can easily be printed on a business card.Sometimes... Read More

    led lighting led parking Pete's produce ..
    led lighting led parking Pete's produce ..