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| 10 Powerful Words To Give You Free Debt Collection |
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| Written by Angelo Ioanides |
| Sunday, 30 August 2009 02:30 |
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Ask 100 business owners why they don't refer their overdue accounts to a debt collection agency sooner and 72 will tell you the same thing... they can't stand the thought of someone else (i.e. the debt collector) gorging on money that's rightfully theirs. You see, when you engage a debt collector not only will they charge you an upfront fee to take on the debt, they'll almost invariably also charge you a substantial commission on every cent they recover on your behalf. Now while the standard rate is around 20% some of the bigger firms will slap you with commissions as high as 45%, taking all the cream and leaving you with crumbs! However, by simply displaying 10 powerful words in your business you can instantly immunize yourself against being fleeced by these fees. So how do you do it? Simple! Openly display a notice that states: "Unpaid Accounts Will Incur Late Payment Fees And Collection Costs" The instant you put this notice up, from that point on for any new accounts you refer to a debt collection agency, all costs incurred to recover that money will be passed directly on to your debtor. Which is only fair as they're the ones in the wrong. So it's only reasonable that they're the ones who get penalised. In this way you won't be billed a cent on all money recovered. Now there are 3 points you need to understand... 1. Wording Is Critical. The wording you display must read "Unpaid Accounts Will Incur Late Payment Fees And Collection Costs" Any alteration or modification of this will more than likely jeopardize your legal right to charge penalties and pass on collection costs. So stick with this wording and you'll be fine. 2. Location Is Critical. For this notice to legally empower you to pass on collection costs it must be displayed where a customer can see it BEFORE they engage your services or purchase your goods. So if your customers can engage your services without actually stepping foot on your premises, displaying this wording only in your office will NOT give you the right to pass on collection costs. A good example is a mechanic who tows a broken-down car back to the garage. If the wording isn't displayed in a place where the owner of the car can see it before the mechanic actually tows the car away then you can not pass on collection costs should they default on payment. Whether they see the sign or not is irrelevant . What's important is that this wording is displayed where it can be seen before any work is commenced. Taking this further, if you provide quotes or extend credit then this wording must be displayed on the respective documentation. Similarly, if customers can do business with you online then this wording must be included somewhere on your website. 3. The Notice Does Not Give You Retrospective Power. Displaying this sign today does NOT give you the legal right to pass on collection fees for existing invoices. So if your current Terms of Trade do not allow you to pass on collection costs, putting up this sign will not miraculously allow you to do so on existing overdue accounts. Sure, it's tempting to think to put up the sign today and then refer your existing bad debts to a collection agency. Now while you might get away with it, if you get caught you'll be up for a $200,000.00 fine! My advice: forget about trying it on with your current debts. Put up rthis sign and cover yourself from this day forward. At the end of the day, it's your money. Don't allow yourself to be penalised to get it back. Put this sign up in your business today and you'll be covered. About the Author: Publisher of the world's only free online Debt collection training for business owners The Debt Doctor is a leading authority in accelerating and magnifying business cash-flows. To Recover Bad Bebts quickly and affordably -- as well as prevent them from occurring in the first place -- simply visit his blog. Add this page to your favorite Social Bookmarking websites                             |