When it comes to corporate debt collection, state and federal law can sometimes have separate implications to a commercial creditor. The following is in response to the question: If someone bounces a check to a commercial business then files Chapter 11 bankruptcy, do we have any recourse? (more…)
Archive for the ‘Commercial Debt Collection’ Category
Corporate Debt Collection – Bad Check Writer Filed Chap 11, Do We Have Any Recourse?
Saturday, February 13th, 2010Collection Letters – The Final Demand Letter
Saturday, February 6th, 2010When all other collection attempts fail, you have a choice: either let the matter (and your money) go, or take it to court. A written Final Demand Letter is recommended by most small claims courts and required by a few, to file suit. This is probably the most important among collection letters.
Keep in mind though that you don’t want to go to court, you want to collect the monies owed. The Final Demand Letter sells the need to pay while it fulfills legal requirements. A good letter results in payment in as many as one-third of all cases, probably because the written word is far more powerful than speech at this stage of the game. (more…)
Commercial Debt Collection – How to Improve Your First Collection Letter
Saturday, January 30th, 2010“Please.” “Thank you.” “Excuse me.” Those are common courtesies that smooth the interaction between people in public. They also encourage the public to treat one another with respect. Similarly in commercial debt collection, if you treat the first collection letter to an overdue customer as a common courtesy, it will improve your collection efforts and encourage a respect for timely payment.
It is generally assumed that a phone call is considered the best first contact when a customer becomes overdue. Unfortunately, phone contact carries with it a lot of time and effort. The seemingly endless calling, being left on hold, leaving messages, returning messages, etc. that is inherent in this method distracts from the core effort of running the business.
However, it is possible to use a collection letter as the first contact, and get results similar to phone contact, but without the cost and time involved with using the phone.
The letter just needs a few important components. (more…)
