I recently had the privilege of leaving the office for part of the day to join a few of my coworkers at the New England Grows Trade Show.  Working in the Customer Service department, we are able to build relationships with clients over the phone, but it isn’t that often that we are able to get out and meet clients and potential clients face to face, so when I was offered the opportunity I jumped at it.  After the day ended I was really happy that I was able to go and wanted to share a few things about that day. 

It’s amazing the different reactions you get from people when they see you are a collection agency, and you are at a lawn care trade show!  You get the people who walk by and joke that they should keep walking because we may have their name; unfortunately, you get people who avoid eye contact all together; but then you get to meet our clients, which for me, was the best part of the day. 

Clients who are only to happy to tell us how much we have helped them with their receivables, but were happy to share their stories. Clients who were having a hard time getting people to pay for work they had performed, or product they had provided and say to us, ‘Its amazing, I call and call and they ignore me, a few contacts from you guys and they are calling me to pay!’  They are able to not only get paid but maintain their customer base and it is just great to hear it right from them; makes you want to say ‘We told ya!’ 

One of the highlights of my day was meeting our client Mike and his brother Colin, who run a small family nursery in a small Massachusetts town.  Of course for a client like this, diplomacy is a huge sticking point.  For Mike, who I was able to talk into doing video for our site (check it out on YouTube!), Tier I really worked.  They love the fact that they can work out payments if that’s what their customer needs, and we are not alienating their customers, a win-win situation.  

Overall, it was a great experience, and I can’t wait to get back there next year! Maybe I’ll see you there!

Credit cards – friend or foe? Every year an overwhelming number of consumers are easily lured into the world of credit card debt. Small business owners also fall into this trap when they use a credit card like a business loan. In the credit card world it is easy to accumulate large amounts of debt without even blinking an eye. Trying to keep a mental tally of expenditures is not always effective and many are regularly surprised when they receive their credit card bills and see how things add up on paper. Purchases coupled with interest and other fees can mount up greater than imagined. It is possible to maintain usage of a credit card in a responsible manner and avoid overwhelming debt in a good or bad economy.

The best way to remain in good credit standing is by paying all your bills on time and settling all overdue accounts in a timely manner. This is easier said than done for some. Over the years, many collection agencies end up communicating with consumers that have not paid attention to their financial house and they end up in a bad situation. The most effective method is to have a plan that entails rapid repayment of all debts; especially credit card accounts.

Having a regular schedule to pay bills is crucial to staying organized and keeping an eye on expenditures and debts. It is also important to inspect all charges on each credit card bill very carefully. Bills can sometimes have hidden charges or fees that may questionable. Don’t be afraid to call and ask about any charges that are unfamiliar to you.

Also, don’t be afraid to call your credit card company and ask them to waive a certain late fee or interest. If you’re in good standing and one month you paid your card late and incurred a fee, give them a call. In many cases, they will drop the fee. Hey, can’t hurt to ask…

A strong financial plan that includes rapid repayment and taking the time to thoroughly go over all bills can save you time and stress. Following an effective budget can also help your family control expenditures and stay on a path to no debt. An effective payment schedule will not only free up cash for other more important things in your life but it will keep you in good credit and financial standing for when you need it the most.

More advice can be found on the website www.askdrdebt.com This resource, managed by the Association of Credit and Collection Professionals and their foundation was set up for consumers who have questions about finances and debt. We actively support this program and have even worked to raise funds to keep it going. And if you like our Facebook page during the month of March, we’ll donate $1.00 to the foundation.

I gave you a few tips last week on managing your cash flow and I have a few more for you. We talked last time about billing on time. I can’t say it enough.  Bill on time…It’s the cornerstone of a well oiled accounts receivables system. As someone who has worked at a collection agency for over 20 years, I have seen far too many times, businesses coming to seek our assistance only to find they have not paid attention to the basics. That and professional accounting software were my last two recommendations; Here’s a couple more;

Make sure your customers understand your billing policy right up front. If you charge a retainer, say so. If you ask your customers or patients to pay at time of service, make sure they understand this. If you’re going to bill them and you expect them to pay within 30 days, make sure they are aware of this before you service them. If you have a lobby, post a small sign there. If you’re a small business owner such as a pest management company and you visit a new client, maybe create a short letter outlining your billing policy at your first visit.

Make sure there is at least one dedicated person internally that manages your late receivables. Make sure they are not wasting any time in following up on late-paying customers or patients and script them accordingly. While there may be certain things you may or may not want to say, make sure you are creating a dialogue with your customer and try to resolve the payment issue with respect. Your goal should be to keep that customer as well as get paid.

For more tips and advice you can hope on over to our main website at www.americanprofit.net and hit the media room. There are many videos there that have advice on a whole host of issues.

It’s now February and a New Year is in full swing. If you’re a landscaper and also plow, wow, business is probably being very good to you this season. We recently attended a tradeshow for the green industry during a snowstorm and the attendance was less than expected. That means you’re making money if you’re a landscaper. And let’s hope you’re billing.

Anyway, there are a number of things you can do to keep up on cash flow at anytime during the year, whether you’re a landscaping professional, plumber, or any other type of service industry. I’ve been working at a collection agency for over 20 years and I’ve seen many mistakes that could have been solved with just a few extra resources and thought. Here’s a couple and more to come in future blogs;

Always bill on time; Carve out a time each month or at the interval you bill and stick to it. Yes, there will be snow days when the kids are home that might throw you off a day but as soon as you can get back to the office, make sure you set that time aside and get those invoices out.

Something many don’t talk about is professional accounting software. Get your business on some type of software for your accounting. There are many types out there including the very popular QuickBooks. This software will keep you on track and in some case automate your billing including mailing invoices. You may also want to check within your industry as there are many industry organizations that develop industry-specific software that can help run your business. Our APR web integrates with many of them.

Take care of the back end of your business first; There are many collection agencies that are happy to take your money regardless of what you’ve done in the past with your accounts receivables. We advocate doing what you can internally before getting us involved. That’s does not mean waiting a year , however to give us these accounts. If you’ve worked them for 60-90 days, it’s time to get professional and diplomatic help.

See you soon with more cash flow tips.