Accounts Receivable: Breaking Up is Hard to Do
Accounts receivable are an asset, but in order to be of value, they have to be converted to cash. Although some companies may enter into factoring arrangements and pledge receivables, most cannot. So basically you cannot use receivables to pay your employees or buy new equipment. What is accounts receivable? Accounts receivable (A/R) are defined as […]
Collection Agencies: Five Biggest Misconceptions
Collection agencies get a bad rap. Some of the criticism is deserved. The very idea of receiving a collection call is upsetting. Some collection agencies have been poor actors. If you are a business, you hate the idea of hiring a collection agency. However, some of the criticism comes from common misconceptions. Let’s take a […]
Collection Agency: More Than Phone Calls
Most people believe that a collection agency simply makes phone calls and reports debts to a credit rating agency. Certainly telephonic contact is an important part of the process. Although I contend it is overrated, credit reporting can perhaps assist with recovery. So what else does your collection agency do? Collection agencies have specialized tools […]
Accounts Receivable: Not a Spectator Sport
Accounts receivable management is essential to the financial health of a small business. All too often small business owners forego accounts receivable management, claiming that they are too busy with sales or day to day operations. Everything is fine, they will say. We grew our sales by 50% this past year, and we have to […]
Collection Agency or Your Lyin’ Eyes
“Who ya gonna believe, me or your lyin’ eyes?” – Chico Marx in Duck Soup Your collection agency is a valuable business partner. When you hire a collection agency, you do so not only to improve your cash flow by recovering bad debt, but also to save you time. A collection agency focuses on […]
Collection Agency: How to Get the Best Results
If you have hired a collection agency, congratulations! You have taken an important step towards improving cash flow and saving time and effort. In order to get the best results, however, you must work closely with the collection agency. Effective communication with the agency is key. You should expect your collection agency to keep you […]
Medical Debt Collection: “You’re All Set”
I have been collecting medical debt for over 20 years. So many things have changed since I started. Small practices have been swallowed up by larger ones, patient out-of-pocket expenses have skyrocketed, technology has changed the way people pay and the enforcement of laws governing debt collection and medical privacy has increased. One thing, however […]
Want to Send Fewer Customer Accounts to Collections?
Do you want to send fewer customers to collections? Do you want to maximize chances of recovery of the accounts you do send to your collection agency? Here are ten things you can do: Establish a clear and consistent credit policy and stick to it. How much credit are you willing to extend to […]
How Long Can You Collect a Debt in Maine?
What is the statute of limitations for debt in Maine and how is it important to your business? I have written a great deal on the many issues that could arise if you fail to monitor your accounts receivables diligently or if you wait too long to hire a debt collector or use the small […]
Maine Small Claims Court: What Are the Alternatives?
Small Claims Courts were set up specifically to allow business owners the opportunity to bring grievances to court themselves, thereby saving on attorney fees. Courts in Maine and in many states continue are slowly reopening after a long Covid-19 closure. As they reopen, there will be a tremendous backlog. If you have been using Small […]
