install vinyl siding best siding siding types best siding lindenhurst hardie plank siding round lake heights .. 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:

    How to Promote Your Business by Entering Contests

    You are probably hard at work promoting your business (and... Read More

    Your Practice is Only as Valuable as Your Referral Base

    Many physical therapists in private practice have the appearance of... Read More

    The Misconceptions of the Value Of Disclosures in Franchising

    Disclosure laws in franchising are suppose to help the consumer.... Read More

    Are You Satisfied With Your Business Just As It Is?

    Did you know that satisfaction is the number one emotion... Read More

    Environmental Pressure Washing in Pennsylvania

    If you run a mobile car wash, mobile fleet washing... Read More

    Write An Effective Job Proposal

    I am simply amazed at the problems some of my... Read More

    Small Business Newsletter Dilemma: Which Day Do I Send?

    If you're just ramping up your small business email newsletter,... Read More

    Dealing With a Crooked on the Take Government Worker

    Many government department heads are on the take. Oh they'll... Read More

    Buying a Business

    Start thinking about buying an established business if you want... Read More

    How Your Habits Control Your Small Business Success

    Habit: A consistent behavior you perform so frequently that it... Read More

    7 Card Tricks That Improve Your Personal Networking Power

    CARD SHARK7 Card Tricks That Improve Your Personal Networking PowerThe... Read More

    Small Business Stress Buster: Completion not Perfection

    Completion not Perfection Five Keys To Doubling Your Productivity and... Read More

    Tracking Revenue For MORE Profits

    The revenue history is a vital piece of your power... Read More

    Bad Regulators Cost Small Businesses

    When a regulator finds a target to go after to... Read More

    ADH Will Make Your Life More Productive & Your Life More Profitable

    What is a Virtual Assistant?? A Virtual Assistant is that... Read More

    Frodos Journey: What It Can Teach You About Marketing Your Small Business

    Just recently, I took a break and caught "The Return... Read More

    Five Quick Ways to Speed Up Cash Flow

    At one point or another, almost every business runs short... Read More

    Web Based CRM Systems: Get Mobile; Get Results

    Everyday more web based companies enter the business scene. The... Read More

    Small Does Not Mean Invisible!

    Running a business on the net these days can be... Read More

    How to Profit from Business Consulting Opportunities

    Business consulting opportunities might be just what your are looking... Read More

    Small Business No How - Dont Give Away the Farm

    You're pretty proud of yourself! After all, only four months... Read More

    How to Manage Your Pipeline

    How is your pipeline structured?I assume most of you have... Read More

    Simple Business Tactics Are Your Key To Success

    In a world full of complications sometimes we overlook the... Read More

    Is Your Small Business Name Important?

    You bet a name is important. Many small business owners... Read More

    Franchisor; Ongoing Support and Ideas

    Ongoing support for a franchise system is omnipotent. A major... Read More

    huge lighting savings neptun lighting Pete's produce ..
    huge lighting savings neptun lighting Pete's produce ..