Good Morning - Just our monthly collection news letter. We have received numerous
emails from our client base to publish the Q&A's from our database to CCRC.
We think it is a wonderful idea, because it applies to all of us. The Q's will be
published nameless and the A's will be addressed by the appropriate department heads
to which the Q's are addressed.
If you want to write a letter to the editor, write a helpful hint article, or generally
opine, feel free to write in to express your opinions, help to other C/M's, Comptrollers,
Treasurers and other Financial Services, etc., we will be your sounding board.
Q1. When do you feel it is appropriate to place a claim for collection?
Timothy P./Dayton, Ohio
A1. With most Credit Managers, it is usually a seat-of-your-pants determination,
as well it should be, because you best know your clients payment history. But, as
a purely analytical question, we feel that a 90/10 formula, is the correct one.
Wait your 90 days, send a 10 days demand letter and make your placement at 100 days.
It would help your DSO, it would get you're A/R into play, sooner rather than later
than just waiting for payment, annoying yourself, waiting for payment, which may
or may not be paid. REMEMBER, the longer a debt remains unpaid, the greater the
chance it will never be paid. Your dollar depreciates every month it is not paid.
One dollar, depreciated over the course of one year, is valued at 31 cents, a loss
of 69%. Can your firm justify that kind of percentage loss, YOU DO THE MATH.
F.Ackerman,mgr, placement dept.
Q2. When do you determine to litigate and under what circumstances?
Arnold R./Tampa, Fla.
A2. When all of our multiplicity of collection techniques fail. No movement
in the collection process, when we reach an impasse, when they do not dispute the
claim, when they fail to negotiate, in good faith, a payment plan, etc. We do an
asset search to determine whether our judgement can be levied and enforced. We must
bring the debtor account to the table, on behalf of our client. Once a summons and
complaint has been filed, our statistics show approximately 60% respond positively,
at that point in time, and know that we are serious in our collection efforts, on
behalf of our client.
N.Kane, mgr, legal dept.
Please consider our last collection newsletter of October 2006 and address your
year end write-offs earlier, rather than later, for your SANITY.
Thank you for your continuing interest in our firm. We are dedicated to providing
the best service we can, and always in the best interest of our clients.
Sincerely, Don Andrews,
Commercial Collection Resources
Andrews Towers, 729 Singing Trails Drive, Tower Suite
El Cajon, CA 92019-2755
Tel: (619) 440-2822
If you do not wish to receive emails from us,
reply to this email with "remove" in the subject.