Ultimate Credit and Collections Handbook

by Dunn, Michelle

• ISBN13: 9781599180250
• ISBN10: 1599180251
• Edition: CD
• Format: Paperback
• Copyright: 2006-08-28
• Publisher: Entrepreneur Press

Summary

Shows entrepreneurs step by step how to create a credit department that generates income and convinces banks to approve loans More current than its competition because it includes current state and federal regulations and up-to-date resources Targets small business owners and provides them with a smart credit and collections policy, opening up opportunities to make more money CD-ROM includes valuable forms and sample collection letters

Author Biography

Michelle Dunn is the founder of M.A.D. Collection Agency.

Table of Contents

PART 1 HOW DEBT AND CREDIT AFFECT SMALL BUSINESS OWNERS
Chapter 1 What is Debt?	1	(15)
What Entrepreneurs Need to Know About Debt	3	(2)
Getting Out of Debt	5	(1)
Staying Out of Debt	6	(1)
Dealing with Creditors	7	(1)
How Small Business Owners Can Handle Bad Credit	8	(1)
Protect Yourself and Your Business from Identity Theft	9	(5)
How to Tell if a Money Order Is Fraudulent	10	(1)
How These People Get Your Name	11	(1)
How to Prevent Identity Theft from Happening to You and Your Business	12	(1)
What to Do if You or Your Business Is a Victim of Identity Theft	13	(1)
What Is Phishing	14	(1)
Avoiding Scams	14	(2)
Chapter 2 What Is Credit?	16	(7)
How Credit Affects Small Businesses	17	(1)
How Small Business Owners Can Get Credit	18	(1)
The Impact of Bad Credit on Your Small Business	18	(1)
Why You Should Extend Credit	19	(1)
Why Your Customers Want You to Extend Credit	19	(1)
How and When to Extend Credit	20	(1)
How to Manage Your Customers So They Don't Manage You	21	(1)
Fifteen Reasons Why You Need a Credit Policy	22	(1)
Chapter 3 Avoiding Pitfalls for Any Small Business	23	(6)
Outsource or In-house?	25	(2)
Accounting Software	27	(1)
Billing Procedures	27	(1)
Maintaining Records	28	(1)
Chapter 4 Invoicing and Statements	29	(10)
Setting Your Payment Terms	30	(1)
Payment Terms	31	(1)
Charging Late Fees and Interest	31	(1)
Your Small Business Can Give Discounts!	31	(1)
Making Statements Work for Your Small Business	32	(1)
Offering Payment Options	32	(9)
Pre-Payment Options	33	(1)
Checks	33	(1)
Credit Cards	34	(1)
Online Payments	35	(1)
Automatic Bill Pay	35	(4)
PART 2 COMPONENTS OF A CREDIT POLICY	39	(34)
Chapter 5 What Is a Credit Policy?	41	(15)
Why Your Small Business Needs a Credit Policy	42	(4)
How a Credit Policy Affects Your Customers	46	(1)
Setting Procedures	47	(1)
Forms, Letters, and Applications	48	(6)
New Account Forms	50	(1)
Credit Denied or Accepted Letters	50	(1)
Credit Applications	50	(4)
Results of a Credit Policy	54	(1)
Top Four Collection Mistakes	54	(2)
Chapter 6 What Is Credit Risk?	56	(7)
Managing Credit Risk	56	(1)
Checking Credit	57	(1)
How to Run and Read Credit Reports	58	(1)
What Is on a Credit Report?	59	(1)
Credit Scores	59	(2)
What's in a Credit Score?	60	(1)
Types of Credit Scores	60	(1)
Reasons to Use Credit Scores	61	(1)
Credit Score Factors	61	(1)
Important Collection Tips to Remember	61	(2)
Chapter 7 Creating a Credit Policy	63	(10)
Is a Credit Manager Right for Your Small Business?	63	(2)
Debt Collector or Credit Manager Job Description	64	(1)
Skills and Resources for Credit Managers or any Small Business Owner	65	(3)
Developing a Telephone Voice	65	(1)
Refining Listening Skills	66	(1)
Managing the Emotional Side	66	(1)
Preparing the Pre-Call Plan	66	(1)
Making Your Opening Statement	67	(1)
Closing the Call	67	(1)
Following Federal and State Laws When Extending Credit	68	(1)
Complying with the Fair Debt Collection Practices Act	69	(1)
Penalties for Violating the FDCPA	70	(1)
Elements of a Credit Policy	70	(5)
New Account Forms	70	(1)
Credit Applications	70	(1)
Checking Credit	71	(1)
Setting Credit Limits	71	(1)
Notifying the Customer	71	(1)
Updating Credit Limits	71	(2)
PART 3 MANAGING BUSINESS FINANCES	73	(12)
Chapter 8 Handling Customer Deductions	75	(10)
Determining the Cause of Deductions	75	(1)
Heading Off Future Deductions	76	(1)
Documenting Discussions with Customers	76	(1)
Follow Up on Erroneous Deductions	76	(1)
How Small Business Owners Can Handle Delinquent Accounts	77	(1)
Letters to Send to Delinquent Accounts	77	(2)
Friendly Reminder Letter	78	(1)
Second Notice	78	(1)
Final Notice	79	(1)
Making Quality Collection Calls	79	(2)
What You Can and Cannot Do	80	(1)
Purpose of the Collection Call	80	(1)
Follow Up	81	(1)
Collection Calls, Tips, and Examples	81	(1)
Confirmation Letters	82	(1)
Confirmation of a Payment Promise Letter	82	(1)
Confirmation of a Payment Plan Letter	83	(1)
Tips for Collecting Money	83	(1)
Debt Collection "Cheat Sheet"	83	(2)
PART 4 WHEN TO USE A COLLECTION AGENCY	85	(20)
Chapter 9 How to Choose a Collection Agency for Your Small Business	87	(5)
When to Use a Collection Agency	88	(1)
Working with a Collection Agency	89	(1)
How Collection Agencies Get Paid	89	(1)
How Using a Collection Agency Affects Small Business Owners	90	(1)
Collection Agency Payments and Updates	90	(2)
Chapter 10 Fair Debt Collection Practices	92	(3)
What Is the FDCPA?	92	(1)
Complying with the FDCPA	93	(1)
How the FDCPA Affects Small Business Owners	93	(2)
Chapter 11 Cease and Desist: What Does It Mean?	95	(3)
Bankruptcy and How It Affects Small Business Owners	95	(1)
Death and How It Affects Small Business Owners	96	(1)
My Customer Sold or Went Out of Business	97	(1)
Chapter 12 Fair Credit Reporting Act	98	(7)
What Is the FCRA?	98	(1)
How the FCRA Affects Small Business Owners	99	(1)
Complying with the FCRA	100	(1)
Disclosure and Authorization Required for Consumer Reports	100	(1)
Additional Disclosure Required for Investigative Consumer Reports	100	(1)
Handling Reported Disputes	101	(1)
What Is Credit Reporting?	101	(1)
Can a Small Business Owner Do Their Own Credit Reporting?	102	(1)
How to Do Credit Reporting	102	(1)
To Whom Do I Report?	103	(2)
PART 5 WHAT MAKES A SUCCESSFUL CREDIT POLICY?	105	(16)
Chapter 13 Reasons to Implement a Credit Policy	107	(6)
Things Entrepreneurs Should Avoid When Extending Credit	108	(1)
Top 11 Web Sites for Small Business Owners and Entrepreneurs	109	(1)
Tips to Get Your Business Out of Debt	110	(1)
Five Ways to Better Business Credit	110	(3)
Chapter 14 Helpful Collection Tips	113	(8)
Collection Call Telephone Tips	113	(1)
Common Debt Collection Errors	114	(2)
How to Correct Debt Collection Errors	115	(1)
Top Debtor Excuses for Not Paying and How to Handle Them	116	(1)
Consumer Excuses	116	(1)
Commercial Excuses	117	(1)
Funniest and Strangest Excuses	117	(1)
Silence Is Golden	117	(1)
Tips for Improving Your Collection Procedures	118	(3)
PART 6 CASH MANAGEMENT AND MAXIMIZING CASH FLOW	121	(14)
Chapter 15 Assessing Your Cash Position	123	(7)
Paying Your Bills on Time or Early	124	(1)
Improving Cash Flow	124	(2)
Watching Your Overhead	126	(1)
Managing Payables	126	(1)
Seeking Up-Front Payments	127	(1)
Evaluate Your Pricing	127	(1)
Running a Profitable, Debt-Free, Small Business	127	(1)
Focus on Sales and Reduce Expenses	128	(1)
Advantages of Prompt Invoicing for Any Small Business Owner	128	(2)
Chapter 16 Collection Downfalls of New and Small Business Owners	130	(5)
Getting New Customer Information	131	(1)
Checking Customer Information and Creating Accounts	132	(1)
Getting Paid	132	(3)
Appendix A Credit and Collection Letters	135	(7)
Appendix B How to Turn Prospects Into Credit-Approved Customers	142	(25)
Appendix C Tips to Help You Make More Money and More Sales with a Credit Policy	167	(4)
Appendix D More Credit and Collection Tips	171