Gift of the Season

This year, we decided to celebrate this joyous season with a meaningful gift that's as unique as you!

Over the years as the holidays have approached, Credit Risk Management has given pointsettias, chocolates, gift baskets, some CRM wearables, bags and other items to show our appreciation.

This year when contemplating what to share with our clients and associates, we paused as we thought about the world today. With so much economic uncertainty around the globe and many people truly in need, we decided that we should redirect the resources and buy some of the most meaningful gifts we could find to share on their behalf with those in need.

We were sure our clients and associates would feel great pride in sharing love, bringing joy, and giving hope through World Vision globally and here at home.

So, on behalf of the truly great clients and associates of CRM, we gratefully give these gifts to those less fortunate.

-       3 Little Pigs

-       1 Cow

-       2 Goats

-       2 Sheep

-       1 Family Fish Farm

-       Agricultural Packs for 3 Families

-       School Supplies for 4 Canadian Children

-       Feed 4 Hungry Canadian Families

-       Help 2 Families Start a Business

-       Support for 2 Street Children

It's a changing world that calls for new thinking, and we're proud to stand shoulder to shoulder with you.

Best Blessings of the Season to You.

Wishing You Prosperity and Good Health in 2011!

Credit Risk Management Canada
61 Lorne Ave. E., PO Box 96
Stratford, ON N5A 6S8
Phone: 1-800-267-0490
Fax: 1-800-350-7772

Credit Risk Management Gives Back

Photo courtesy of the Stratford Beacon Herald.

 

Credit Risk Management has donated 

$15,000.00

to name the Gowned Waiting/Change room and Biopsy room in the New Breast Health Centre as part of the 

Stratford General Hospital's  

Heart & Soul Campaign.

Proud to be a member of the CRM Team!

Collection Tip: Partnerships - Who is Responsible?

Partnerships - Who is Responsible?

If a partnership - where two or more people co-own an unincorporated business - goes out of business and still owes you money, you may think that money is uncollectable.

Legally, all partners in the business are responsible to pay 100% of the business' debts.

Consider the following example:

• Two people are in business together.
• The partnership goes out of business.
• Partner 1 goes bankrupt.
• Partner 2 still lives in the area and has gone into business for himself.

In the case described above, Partner 2 is still collectable and is 100% responsible for debts incurred by the partnership.

The Bottom Line:

Don't let partnership owners use going out of business as an excuse not to pay you back. As long as the company was not limited or incorporated, the owners are 100% responsible.

Collection Tip: The Dangers of a Poorly Worded Agreement

The Dangers of a Poorly Worded Agreement

Accounts are frequently submitted to us for collection that are needlessly difficult to collect due to confusing written or verbal agreements.

Here is how weak wording can - and often does - result in lost dollars.

Who owes the money?
Sometimes written agreements don't distinguish between the customer's company and the customer personally. We often discover that the party from whom we were instructed to collect, is not actually responsible for the debt. Not making it clear who is responsible results in complications that could render the debt uncollectable.

What is owing?
When credit agreements are worded in such a way that doing the math can lead to different amounts owing, the customer could derive a different balance than you have on file - even though you are both basing your calculations on the same information. In some cases, interest rates are stated in terms that are open to interpretation - are they annual? monthly? simple or compound? Make sure the agreement is clear on what will be owing at any given time.

When is payment due?
Generous settlements or payment arrangements are often discussed and agreed upon. However, believe it or not, the actual payment due dates are frequently omitted from the signed agreements. In these cases, a customer could claim ignorance regarding the payment due date or settlement offer expiry date. Remember that it's always best to include exact dates with whatever payment schedule is in the agreement.

Where is the payment to be made?
Difficult customers can twist and confuse any issue to their advantage. For instance, if goods are involved, be sure all parties are clear on where they are to be delivered - what address, at whose expense, etc.

Why do I owe the money?
Recently we had a collection account where the debtor produced cancelled cheques showing payments he had made prior to being sent to collections - payments which had not been applied to his balance with our client. Turns out that when he issued the cheques, he requested that they be put toward his brother's account instead of his own. Unfortunately, since our client didn't get that in writing, the debtor then had the opportunity to question why he still owed them money after his cheques were cashed.


The Bottom Line:

Anything in business that can be misinterpreted, will be misinterpreted by people who like to take advantage of poorly worded agreements. Complete and clear details go a long way toward preventing disputes and lost dollars.

Collection Tip: Cutting Corners

Cutting Corners

Ever heard this saying? "An ounce of prevention is worth a pound of cure."

In the busy workplace, there always seems to be too much to do and not enough time to do it in.

Cutting corners may feel like a short term solution, but it can lead to long term collection problems.


Some common corner cutting cases we've come across:

• Relying on opinions and hearsay rather than on credit facts.
• Not insisting that a proper credit application be completed and signed - or failing to notice that it was not signed or properly completed.
• Not verifying information that should be verified before any credit is extended.
• Not investigating and dealing with disputes promptly.
• Failing to follow up on deteriorating payment habits.
• Ignoring overdrawn credit limits instead of reviewing the customer's ability to pay.

The Bottom Line:

Take the time to be thorough. Each and every corner cut throughout your sales or lending process can become a very large obstacle down the road.

Collection Tip: Patience vs. Payments

Patience vs. Payments

Unlike wine, collections do not improve with age.

We see a wide range in the age of overdue accounts that our clients list for collection.

90 Day accounts are popular, especially with our pre-collection service. But some clients keep unpaid accounts in their own office for a year or more, hoping for a miracle. From our experience this can result in collectable accounts becoming uncollectable.

We believe in miracles too, but it seems that for every miraculous payment there are numerous old accounts that “go bad” – when the customer is finally pushed to pay, there are problems or complications because the account is so old.

These problems may seem familiar: 

• The customer suddenly “remembers” problems with your product or service.
• The customer advises that he/she does not pay interest. You have financed the customer for nothing.
• Employees leave and customers claim certain deals and promises were made with a former employee.
• Your customer goes bankrupt, disappears, becomes very ill, or any of the multitude of other scenarios that render the account uncollectable.
• If you decide to take legal action, older accounts may be statute barred and your legal costs will be unrecovered on top of the balance already outstanding.
• Important documents can’t be located – they’ve been lost in the shuffle over time.
• You get frustrated and simply give up on older accounts.

 

 

The Bottom Line:

 

While some creditors wait patiently for a miracle, others are getting paid!

 

Contact us for more information or advice on how to balance patience vs. payments:

Email: Credit_AR_Guru@crmcanada.com
Toll Free: 1-800-267-0490

Check out our website for more information on end to end A/R solutions:

www.crmcanada.com

Collection Tip: Right Under Your Nose?

Right Under Your Nose?

Accounts listed for collection get larger all the time. Despite the larger balances, information customers provide is often disregarded – information that could prove very helpful later, if the account goes unpaid.

Examples of details that often slip through the cracks:

• Bank and account number from which payments were drawn. This can be found on cheques, and sometimes on credit applications and preauthorized payment forms.
• Possible alternate or updated business names (incorporated or otherwise) under which the customer appears to be operating.
• Letters or documents showing changes in the business, such as asset ownership, partners, etc.
• Change of address notice from the customer.

A good, up to date credit application is usually the most well rounded source of information. However, we’ve found the leads mentioned above can also be extremely useful when collecting an account.

The Bottom Line:

When an account is delinquent, have a closer look at the documentation you already have on file and see what you find. There could be essential information right under your nose.

Check out our end to end A/R solutions at www.crmcanada.com

Collection Tip: "No Big Deal"

No Big Deal

When your accounts receivable fall into these categories:

1. Terms of payment not kept
2. Promises for payment not complied with
3. Credit limits exceeded

These are serious, urgent issues.

“So the account is a bit slow, what’s the big deal?”

This type of thinking is the root of the problem. When you make accounts receivable calls with the “no big deal" attitude, it's reflected in tone and word. This gives your customer the impression that it doesn't matter to you if they pay or not.

The Bottom Line:

If the person calling for payment does not convey urgency, then how can the customer consider their payment urgent?

How many accounts remain unpaid because the customer considers the delinquency “No Big Deal”?

Credit Risk Management is Celebrating YOU!

40 years in business

with trusted friends like you…

1970 ~ 2010

Our sincerest thanks to you – our successful and loyal clients

who truly have made these 40 years

possible and tremendously enjoyable.

We could not be more proud of the strong support and ongoing trust that you place in us.

Our clients - this is what makes us so proud of our roots and extremely passionate about reducing your credit risk and returning money to your bottom line. Being part of your community and part of the solution gives us meaning and an excellent reason to celebrate.

Credit Risk Management Canada

CELEBRATES YOU

at our

40th Anniversary Wine & Cheese Party!

Wednesday, May 19th, 2010

4:00 p.m. to 6:00 p.m.

 

 

Email Credit_AR_Guru@crmcanada.com or click here for directions.