Are you overwhelmed with debt?

13 07 2011

There are several options that consumers have to deal with their debt before considering bankruptcy. Declaring bankruptcy may be helpful in certain situations but it should always be used as a last resort. Depending on your level debt and self discipline, there are different options that you should consider.
Organize yourself
Contact your creditors directly and try to work out a payment plan. Try explaining to them the cause of your financial troubles, they may be understanding. Don’t wait until you have debt collectors calling you because that means your creditors have given your debt away to someone else which may or may not affect your credit. If you have secured debt like a home or car loan those objects may be repossessed until the full payment of the debt is received. If you foresee that you cannot make the payments on time, If possible, the best way to avoid this is sell the car or house and pay off the loan before the amount builds up more than you can handle.

Work with credit counselors
If you cannot organize your finances on your own there are organizations out there to help people with these exact problems. They usually offer services online or on the phone. They can help advise you on managing your debts and money, develop a budget and offer free educational materials.
Enroll in a debt management plan
Debt management plans or DMPs are programs that work with your creditors and schedule timely regular monthly payments for you unsecured debt. In exchange for inactivation of the accounts or credit cards the creditors may lower interest rates or fees. These are not for everyone though. If you fail to make a payment while enrolled in one of these programs it may affect your credit even worse.
File for bankruptcy
This should be done only as a last resort. The results of this are long lasting and can stay on your credit report for up to 10 years. This can make it almost impossible to buy a house or car or even get a job. But if it is your only option, it is an option.





Hiring the Right Sales Person for Your Company

2 06 2011

Hiring the right sales person can be a difficult business decision.  Not only do you want to get the best person for the job, you want the best person for selling your product.  Hiring sale people can be difficult because if they are good at what they do they will be selling themselves to you in their interview.  There are different angles to be considered before hiring a new sales representative.

Hiring sales people already in your industry has its advantages and disadvantages.  Some of the advantages are that sales people within your industry are already familiar with how to sell to your customer base.  It can also reduce the cost and time of hiring and training new employees.  Sometimes hiring people already in your field may expand sales by acquiring the new contacts.

However, there are disadvantages to hiring sales people within your industry.  People already in the industry might not be the best candidates to choose from.  If someone is looking for a new sales position within the same industry there is a reason.  Usually these people are at the bottom percentage of the sales ranks.  Remember that every sales group is different, even within the same industry.  Your company might require different skill sets than what your new sales person learned from their previous company.

Hiring from outside your industry can be an excellent choice to avoid some of the problems listed above.  There are a few things to keep in mind when looking for sales people new to your industry.  Look for people who have job skills that are clearly defined and have worked within standard sales dealings that aren’t industry specific.  Remember that a good sales person is responsive to the customer.  By predicting the purchasing patterns of your customers, it shouldn’t be difficult to find related industries where the sales people are trained in a way that making the switch in industry will not affect their selling skills.  Finally, look for skill not just a degree.  Ask the prospective sales employee about their numbers from previous jobs.  Remember that perseverance and drive are not things that can be learned in school.

Remember when hiring a new sales person to keep in mind their persuasiveness and selling points.  You want to hire the best person for the job and your company, but you need to make sure they will fit into your company culture.  Just because people have sales in your industry does not necessarily mean they will be the best candidate for the job.





Paying Off Your Debt

31 03 2011

Whether you accumulated consumer debt, or business debt, paying off your loans or credits is important for your financial health.  Although, you may fall into hard times and money is short, you still need to prioritize your bills.  Below are a few steps in getting organized and prepared to pay off debts.

  1. Create a list of what you owe.  Put a list of all your debts and bills in order of the balance owed.  Then prioritize your repayments by importance and the interest rate accumulating on the debt.  You should pay down the highest interest rate first.
  2. Eliminate Credit Cards.  Pay off your credit cards and then either cancel the account or use it responsibly.  Do not charge more than you can afford.
  3. Make a spending plan.  Track the amount of money that is coming in and how much you are spending.  Make sacrifices by giving up a luxury or two in order to pay off more of your debt.
  4. Pay more than the minimum.  By paying more than the minimum required each month, you will pay off your debts quicker and in return you will save money on interest that is accumulating on outstanding debt.
  5. Before declaring bankruptcy , borrow against your 401K, home equity, or life insurance, but be careful because that must be repaid too.
  6. Renegotiate terms with your creditors.  Let them know that if you are unable to work out a lower payment plan, or receive a lower interest rate, you will have to file for bankruptcy.  Most creditors will not want to experience a total loss on the debts owed to them.
  7. If overspending is a continuous problem get help.  It can be a difficult habit to kick, but it is important to have control of your spending to stay out of financial trouble.

Remember, it is important to be responsible and pay off your debt in order to save your credit score.  A low credit score can result in a world of trouble if you ever need a car or business loan, or want to take out a mortgage to purchase a house.





Small Business Loans for 2011 Unlikely: Businesses turn to Collections for Cash

3 12 2010

Cash is needed in order for any business to operate.  In the past it was easier for Banks to lend money in order for the business to continue operating but since banks have tightened up giving loans to small businesses, many have been forced to max out their credit cards carrying further debt into 2011. Businesses will continue to need economic relief. The question is “where will it come from?”

 

Fico claims that banks as Lenders may not be able to meet the credit demands of small businesses seeking relief in the future.  59% of those surveyed expect small businesses to request a higher amount of credit over the next six months, but less than 37% expect lenders to increase the amount of credit given to those small businesses.

 

According to Standard & Poor’s Data, only four companies last month received leveraged loan covenant relief for a total of $883 million in leveraged loans.  This is the lowest amount of relief given since February 2008.

 

S&P expects covenant relief activity to be high in the beginning of 2011 as checks due to lender agreements from 2008 and 2009 are paid.  But as the year goes on, businesses may not be able to get relief from banks.

 

Until problems in mortgage portfolios are solved and private sector employment grows, the gap between credit demand and credit supply is unlikely to close. Along with this, the number of failing banks is increasing as well.  In 2010, 141 banks failed, making it the worst year ever, and this list is expected to continue to grow.

 

With banks unable to loan money, small businesses will seek other ways to generate cash to operate.  THERE IS A SOLUTION.  Businesses can rely on Commercial Collections professionals to recoup lost cash flow from customers who have not paid. Although times continue to be hard professional B2B collection agencies have the tools, the staff and the expertise to put your receivables on the TOP of their bills to be paid.

 

Caine & Weiner reported that out of the businesses surveyed, 57.5% plan to place accounts for collection in order to generate cash and the sooner the better. Credit and Collection managers also plan to reduce credit lines given to clients and to initiate collection sooner in order to protect their accounts receivables and generate money as banks are unable to offer financial relief in the upcoming year.

 

The bottom line is that businesses can no longer continue to be their customer’s bank and CFO’s; Controllers and Credit Managers must be more proactive in 2011. It can be argued that revenue generation is the most critical function of a company.  However, that revenue must be converted into cash.  Cash is the lifeblood of any company.  Every dollar of a company’s receivable must be managed and collected.





International Debt Collection

19 11 2010

With the growth of a global economy, more and more companies are able to advertise and sell their products and services in other countries as well as their own.  Global economies also lead to the expansion of debt collections into foreign countries. When doing business in a different country, you need experience and knowledge of the countries government and laws, trade restrictions and requirements, and the differing currencies and credit reporting criteria.

Debt Collection Agencies collecting from or for companies outside the United States need to consider a few factors:

1. Language – Working with people from different countries often presents a language barrier.  It is important to have a translator for communication.

2. Time Zones – Working across time zones presents communication challenges and time constraints regarding when you can talk with someone in the opposite time zone.

3. Foreign Partner Relationships – Gaining the cooperation and a positive attitude while working with a foreign country will build a quality relationship between the client, collection agency, and debtor.

4. Laws – It is important for a debt collection agency to understand their country’s laws and the other country’s laws and policies regarding credit, collection, and the court systems.

At Butler Robbins & White Global Revenue Recovery, we are able to collect foreign debt with our unique research.  We may be able to transfer a judgment to a foreign country. We are sensitive to the different cultures we work with and offer an extended arm, so companies are able to interconnect with the United States.

Let us help you! Email us today at RKluge@brwcollect.com