addition to back of house island lake raised ranch kitchen adding a front porch to an existing house small sunroom addition deerfield sunken living room remodel buffalo grove .. 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:

    Aircraft Washing Service Operations Manual

    Anyone who is serious about washing aircraft as a full... Read More

    How to Get Maximum Results With Minimum Effort

    Get maximum results with minimum effort. Sounds great doesn't it?... Read More

    Are You Ready to Own and Operate a Business?

    How often has someone thought of starting a business based... Read More

    The Benefits of Using Freelance Consultants / Trainers for Your Project

    What are the benefits of using a Freelance Consultant /... Read More

    Will Adding a Car Wash to Your Fast Lube Add Additional Crime to Your Facilities?

    Car Wash Crime in the Hood. Apparently not everyone is... Read More

    Business Debt Collection Letter Writing Secrets

    Debt collection letters--an overview"Debt collection letter" in the singular may... Read More

    Operational Aspects on P and L Statements of Mobile Services Businesses

    What kinds of things effect mobile service businesses P and... Read More

    Don?t Wait for the Perfect Plan

    1. Don't Spend Too Much Time PlanningWhen you are entering... Read More

    Where Can I Get Clients From?

    The following tips have come from a wide variety of... Read More

    7 Cash Flow Secrets Your Accountant Never Told You

    Looking for ways to boost your cash flow? As a... Read More

    Small Business Operators - 7 Reasons You Should Change Your Accountant

    A recent survey showed that only 28.7% of small business... Read More

    Mobile Car Wash and Cleaning Post Office Jeeps

    If you own a mobile truck washing, pressure washing or... Read More

    Five Break-through Ideas to Immediately Increase Profits and Improve Cash Flow

    Too often in business we get trapped into reviewing our... Read More

    How to Find a Microenterprise Loan for Your Business

    If you're looking for start-up capital for your business, but... Read More

    One Of The Best New Business Opportunities May Be Right In Your Home - A New Daycare Business

    The day care industry is expanding. There are now more... Read More

    How to Raise Your Fees and Thrill Your Customers

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

    6 Ways Small Businesses Can Survive In A Crazy Economy

    Contrary to popular belief, small businesses can survive a crazy... Read More

    Seven Common Mistakes Made By Small Business Owners

    Most new small businesses won't be in business this time... Read More

    Pressure Washing Business; Steam Cleaner Fuel Maintenance

    It is essential that you fully understand how the fuel... Read More

    Image is Everything - Secrets to Cleaning Car Fleets

    A recent survey indicated that clean Taxi Cabs Fleets have... Read More

    Small Business Computer Security, the Basics

    Anyone in business today realizes both the natural dependency on... Read More

    What Is YOUR Value Proposition?

    Every company has a value proposition. That is a statement... Read More

    Buy a Flower Shop: Serious Considerations

    You've always liked flowers and you think the idea of... Read More

    Environmental Boat Washing and Detailing

    Some marine biologists feel that the concentration of dead marine... Read More

    How to Create an Information Plan

    What is in an information plan?Before you even meet with... Read More

    buy led light bulbs philips street lighting Pete's produce ..
    buy led light bulbs philips street lighting Pete's produce ..