| |
| |
|
Small Business Information |
|
|
|
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:
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. 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. 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:
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. 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. 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.
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.
MORE RESOURCES:
Small-Business - Google News |
|
|
|
RELATED ARTICLES
Awning Cleaning Business Case Study: Entrepreneurship 101 It is most fascinating to study how entrepreneurs spot opportunity in the market place. "My name is Lance Winslow and I am a serial entrepreneur, I admit I am addicted and need help. How the Humble Ice Cube Made Business History Gather round while I tell you the story of Kennebec Ice. It's a story full of valuable business lessons even though it happened long ago. Your Ideal Client - A Key Concept for Solo and Small Business Marketing "I don't know the key to success, but the key to failure is trying to please everybody."--Bill CosbyHave you ever had clients that were more trouble than they were worth? Maybe they were always late to pay, or didn't do what they said they'd do. FFP vs. CPFF Contracts SBIR Corner: FFP vs. CPFF contracts:In the SBIR/STTR world, the single most important decision you need to make is whether you are going to bid a job as Firm Fixed Price (FFP) or as Cost plus Fixed Fee (CPFF). Small Business Grants - Tips from the Pros Every business starts with an idea or a dream. To implement this idea or to turn your dream in to reality you require finance. How to Profit from Business Consulting Opportunities Business consulting opportunities might be just what your are looking for in a home based business.What do you do? Do you possess a mastery of your career? Are you articulate and able to convey ideas clearly? If so, you may be the perfect candidate for providing business consulting services. Routine Maintenance of High Pressure Hot Water Motors If you run a pressure washer business you need complete uptime on your equipment, break downs can be costly if your billing rates are $100 to $150.00 per hour. Round Pegs In Round Holes: The Amazing Secret of Succeeding in Any Business Every Time! Success is the desire of everyman on the face of this earth. There is no normal human being without this yearning. What Is YOUR Value Proposition? Every company has a value proposition. That is a statement of their perceived value to their clients. Learning and Growing As you reflect on this year and prepare for next year, what are the lessons you have learned in business and how do you plan to use those lessons to grow your business in the year ahead?And remember, in every challenge there is opportunity for growth so even if you had a challenging year it can be a stepping stone to success.I know the hustle and bustle of the holiday season can seem overwhelming when you try to factor in end of year business planning. Effective Customer Interviews Make Life Much Easier! One of the critical success factors for service-related businesses is our ability to understand a client's needs and requirements. Misunderstandings can lead to loss of repeat business, economic loss, and damage to reputation. Take a Break - Have a Pity Party Pity parties are nothing new. In fact, we do it all the time and I'm guessing that you probably go to many. Competition in the Mobile Car Wash Industry We have all seen the mobile washing units cruising our city, usually they are trucks, vans or trailer set ups with a water tank and a pressure washer unit aboard. They market their services with flyers and business cards, however most of their business comes from weekly repeats and referrals. Self-Employment: Managing Your Money: Tips for Living with a Fluctuating Cash Flow (Part One) The way you manage your money is one of the first things you'll change when you move from employment to self-employment.You are moving from an environment where you received income in equal amounts at set intervals to one where your income fluctuates. Arent Small Businesses Lucky? Why? Because they have access to world class public relations no matter how small they are.That's one way of saying, take care of your key target audiences, Mr/Ms small business owner, and they'll take care of you. Business Owners - Do You Actually Own a Job? How many hours do you work a week? When was the last time you took an uninterrupted holiday? Do your staff have a better job than you? Now ask yourself, Do I Own a Business or a Job- with Overheads? Are you happy about the answers to these questions? If not, read on.In Empower Business Solutions experience, too many owners, after investing their time and money, have not got a fair return from their business. How to Start a Pet Transportation Business Pet Transportation Services are needed as the number of pets in the U.S. De-Ionization Decisions in Mobile Car Washing Many mobile car wash operators would like to add de-ionized water to their cleaning process. However before you do this you need to understand the reality of the return on investment. A Lesson From "The Apprentice" That Can Make You A Master I have to admit, I was curious. When I saw previews of a new show called "The Apprentice," it made me want to at least watch the premiere to see what was going on. Franchising Companies Relationship Strategies Franchising Corporations need to maintain an iron fist when it comes to certain things in order to maintain absolute integrity of the system; Consistency, Quality, Cleanliness and Customer Courtesy or Service. Ray Kroc in his book; "Grinding it Out" made that point perfectly clear, some called him a hard ass on the details and indeed it served him well and turned 11,000 franchisees into millionaires along with some 1500 executives early on.
|
| home | site map |
| © 2006 |
