Debt Recovery In A Tough Economic Climate-huangshexiaoshuo

Canadian Corporate Legal Services kinder, gentler, and highly effective approach to negotiations and debt recovery in a tough economic climate The current economic slowdown has forced Canadian .panies of all sizes to face the unwel.e reality of unpaid invoices or bad debts. Debt recovery can be a problem. Negotiating for debt recovery on your own can be problematic and ineffective. Some .panies operate exclusively using electronic payments, letters of credit or C.O.D. deliveries. Not all businesses can function using these methods exclusively or at all. There is another challenging level of challenge involved in dept recovery. Consider the following story. A lumberyard sells a truckload of lumber to a general contractor to renovate a new restaurant. No documentation is exchanged between the two .panies or the restaurant. The general contractor was given thirty days after the delivery to make a payment. The thirty days have .e and gone and the lumberyard has not received a payment. Weekly phone calls are not effective in stimulating a willingness to pay because of the restaurants undisclosed financial difficulties that the restaurant is experiencing. Each conversation be.es increasingly heated causing tempers to flair on both sides. What to do? Typically, the next step is for the lumberyard to prepare a stern demand letter. However, such a letter may progressively alienate the customer making matters worse. If there is a problem with the accuracy of the name of the .pany and names of the owners further .plications can ensue. We re.mend that Canadian Corporate Legal Services be brought in at this stage stimulate an amicable negotiation for dept recovery. Our first step in negotiating debt recovery would be to build a detailed file with all pertinent details. This may include yes; credit history, review of debtors actions in connection to this latest debt, names of those involved, exact .pany names, details of the goods supplied, taxes levied and times of shipping and receipt. Next, we would call the owner of the general contractor and establish a cordial working rapport. Politely but firmly we would indicate that we are acting on behalf of the lumberyard and were preparing to take the matter to court in a predetermined period of days. Emphasizing that the lumberyard has supplied a needed .ponent of the restaurant. We would also appeal to the owner to arrange for payment in a timely and workable timeframe and point out that he might be liable to our client as well. If these calls fail, a demand letter is sent to the restaurant indicating the .mencement of legal action. All these efforts are meticulously recorded. Generally, we achieve positive results without the need to go to court. If there is need we have the expertise to proceed quickly and successfully. Canadian Corporate Legal Services has been actively involved in debt collections for over 20 years. Collectively, we have over 70 years of experience in helping .panies negotiate and collect what is owed to them while preserving customer good will and a positive corporate image. At Canadian Corporate Legal Services we take a kinder gentler approach to negotiating for debt recovery. Our method is to avoid alienation when working with people and .panies who owe our clients money and try not to alienate them. Due to the current economical crisis people who owe money are generally nervous about unfair debt collection. Hostile phone call and letters is not an affective method and can be emotionally draining for both parties. Our approach is to appeal to their morals and good nature while of course pointing out the additional cost and consequences of not clearing the outstanding balance. Our negotiations for debt recovery are often effective but if not we have the option of court to find the best way to proceed. Many of our long-term clients .e from .panies that we have previously negotiated with successfully for debt collections. A proof that our kinder gentler to negotiating for debt recovery approach can work for your .pany as well. We like to work with our clients internationally to help them manage their account receivables and bad debt load. Here are some things to consider. Consider your CREDIT: Cash Flow Do you have the necessary cash flow? Receivables Do you have a system? Evaluation How do you assess your customers ability to pay? Debt How do you collect overdue accounts? In.e Does your price reflect the price of granting credit? Terms What terms are normal for your industry? If you have a question about an outstanding debt or your accounts receivable issues please call at: 416.784.3770 or email us at 相关的主题文章: