As you develop your commercial debt resolution practice you will find you are dealing with the same creditor agents or attorneys on a regular basis. Building a professional rapport early on will be extremely helpful so that they understand you can be trusted in future cases, especially if you find it necessary to request answer date extensions for pending lawsuits.
Also of importance is keeping good records of each case. A simple legal pad to take notes of conversations with clients and creditor agents is all that is needed. I find it helpful to create a file folder for each new client. Listing their contact information on the inside cover saves time whenever I need to get in touch with them. Copies of all contracts and correspondence are kept within each client folder along with my notes on conversations.
I also recommend you create a file for each creditor. Of course you will want to list their contact information. But just as importantly, you will want to summarize the settlement terms for each case as you deal with this creditor. Knowing how they have structured past settlements will be quite beneficial as you open settlement negotiations on behalf of new clients. Having this reference will help you get the very best deal for your client on each negotiation.
Scott F. Soape
Tuesday, March 24, 2009
Friday, March 13, 2009
Are Face-To-Face Meetings Required?
One of the most common questions I am asked is whether face-to-face meetings are necessary with clients and / or creditor agents.
The answer is: Absolutely not.
My Business Plan System material provides all the information needed to conduct this profession 100% without needing to meet with anyone if you choose. All of this business can be conducted by phone, fax, Internet and mail if that is how you want to work your practice.
However, if you prefer meeting with people to discuss their situations, that is perfectly acceptable and you are certainly free to work your practice in that manner. It is entirely up to each individual how they choose to operate.
Contact with the creditor agents typically entails a properly worded offer by mail, fax or email without the need for even a telephone conversation.
Personally, I rarely meet with clients. It is simply not necessary and, since I operate my practice on a national level, it is often not practical. My material will teach you how to conduct a quick interview over the phone or by email in order to gather all the information you need to negotiate a settlement for your clients.
You may conduct your business in any manner you choose and my material provides the information to allow flexibility in whether or not you decide to meet with other people.
Scott F. Soape
The answer is: Absolutely not.
My Business Plan System material provides all the information needed to conduct this profession 100% without needing to meet with anyone if you choose. All of this business can be conducted by phone, fax, Internet and mail if that is how you want to work your practice.
However, if you prefer meeting with people to discuss their situations, that is perfectly acceptable and you are certainly free to work your practice in that manner. It is entirely up to each individual how they choose to operate.
Contact with the creditor agents typically entails a properly worded offer by mail, fax or email without the need for even a telephone conversation.
Personally, I rarely meet with clients. It is simply not necessary and, since I operate my practice on a national level, it is often not practical. My material will teach you how to conduct a quick interview over the phone or by email in order to gather all the information you need to negotiate a settlement for your clients.
You may conduct your business in any manner you choose and my material provides the information to allow flexibility in whether or not you decide to meet with other people.
Scott F. Soape
Saturday, March 7, 2009
Why Creditors Accept Less
It is pretty obvious why a debtor business would like to settle a debt for less than is actually due. What is less obvious is why a creditor business would be willing to accept less in a settlement. To more fully understand the creditor's reasoning, you need to put yourself in their position.
To begin with, past due debts represent a distraction for commercial creditors. They turn their attention away from regular business as the creditor attempts to collect. This can have an adverse impact on the revenue stream from normal operations.
Secondly, there can be real expense involved in collecting past due debts. Expenses are incurred either from hiring a collection service (who might be paid a percentage of anything collected) or from hiring an attorney (who typically gets paid by the hour regardless of any collection).
Additionally, past due debts look bad on a company's balance sheet and can cause problems when they need financing from a lender.
Given current economic conditions, most businesses understand receiving something in payment for a debt is always better than nothing. Commercial creditors know there is a very real chance a debtor business may simply close up shop and leave them high and dry on a debt.
Once you understand the psychology from the creditor's point of view, the negotiation process is much easier. Often, just making a properly worded offer is all that is needed to reach a satisfactory settlement for your client.
Scott F. Soape
To begin with, past due debts represent a distraction for commercial creditors. They turn their attention away from regular business as the creditor attempts to collect. This can have an adverse impact on the revenue stream from normal operations.
Secondly, there can be real expense involved in collecting past due debts. Expenses are incurred either from hiring a collection service (who might be paid a percentage of anything collected) or from hiring an attorney (who typically gets paid by the hour regardless of any collection).
Additionally, past due debts look bad on a company's balance sheet and can cause problems when they need financing from a lender.
Given current economic conditions, most businesses understand receiving something in payment for a debt is always better than nothing. Commercial creditors know there is a very real chance a debtor business may simply close up shop and leave them high and dry on a debt.
Once you understand the psychology from the creditor's point of view, the negotiation process is much easier. Often, just making a properly worded offer is all that is needed to reach a satisfactory settlement for your client.
Scott F. Soape
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