The Bigger the Creditor, the Better!

I have found over the years that dealing with larger creditor entities usually improves my odds of reaching favorable settlement terms for my commercial debtor clients.  When you stop to think about this, it makes perfect sense.

A smaller creditor seeking financial remedy in a dispute will not be in as good of a position to forgive or write-off a large dollar amount.  They will want to squeeze their debtor companies for as much as possible simply because they truly need the funds to continue operations.

Larger entities, on the other hand, are able to continue business as usual even if they settle debts at substantial discounts.  They will have a larger capital base and can more easily absorb losses with little impact to their bottom line.

Don't make the mistake of shying away from large corporate or government creditors thinking they are too powerful to negotiate with.  You will find most are quite willing and able to work with you for discounted settlements to the ultimate benefit of your commercial clients.

Scott F. Soape

Phone Calls to Prospects

Sending my powerful Prospect Letter to prospective clients often results in calls to you for your service.  However, if you have not heard from a prospect within 3 or 4 business days of sending your letter, give them a call.

Many times when I call prospects after mailing my Prospect Letter, they tell me "I have your letter on my desk and I was intending to call you but I have just been too busy".  All it takes is a follow-up call from me to land a fee generating client.

Other times, I will just make an initial call to a prospect without bothering to send a letter first.  My offer to resolve a problem debt on a "no results / no charge" basis is a hard offer to refuse!

Phone calls to prospects, with or without sending my Prospect Letter, always enhances my revenues.

Scott F. Soape

A Quick Negotiation Tip

When negotiating settlements (especially when a lawsuit is pending) always refer to the debt as "the amount claimed to be due".  Any acknowledgement of an actual debt from you, as agent of your client, could be used against the client should you fail to reach an acceptable settlement.

Scott F. Soape

Avoid "Unlicensed Practice of Law"

How you phrase settlement offers and client communications can be important, especially if you are dealing with attorneys on pending lawsuits.

Unless you happen to be a lawyer, you must always avoid giving your client advice that could be construed as "legal advice" or making arguments against a debt that include matters of law.  The unlicensed practice of law (UPL) is taken very seriously in the legal community and can result in legal action being brought against you if you are not careful.

By positioning yourself only as a provider of "financial advice" for each debt settlement situation, you will avoid the UPL pitfall.  My complete Business Plan System shows how to do this and all of my sample correspondences make this position clear... with clients and creditors.  In my 14 years of negotiating settlements with creditors and their attorneys, I have NEVER had a problem with UPL.

Scott F. Soape

My Refund Policy

As indicated on my website, I offer a "no questions asked" full purchase price refund (less S&H) for material returned intact within 30 days... for any reason.  These don't happen very often but, when they do, I am always quick to process a refund.

Here is an excerpt from a refund request dated September 8th, 2011:

"Dear Scott, I am writing to inform you of my need to return the Business Plan material received last week.  In the last few days, events in my immediate family have totally changed my present and future plans, leaving me no opportunity to pursue the business.  I did review the documents and I was very impressed with your work.  I regret not being able to take advantage of your system and the business opportunity.  Certainly, if anyone I speak with is looking for a great business opportunity, I will recommend you and your business. George H."

This student's material was received intact within the 30 day period and a refund was immediately issued.

I encourage prospective students to contact my office with whatever questions they may have about my program and the profession in general before placing an order.  However, if anyone decides this business is not for them after receiving my material (for any reason), I will always honor my refund policy.  Just like my core commercial debt resolution service I offer to my clients, there is truly "no-risk" to students of my Business Plan System either!

Scott F. Soape

A Recent Actual Case

I just realized it has been quite a while since I have reported on an actual case so I pulled one that closed this week.

On August 19th I called a debtor business named as a defendant on a local lawsuit to offer my services in negotiating a discounted out-of-court settlement on their behalf.

After a couple of conversations with the business owner over a period of a few days, he retained my services on August 29th.

The next day I sent an initial settlement offer to the Plaintiff's attorney.  After a couple more communications back and forth, they countered with a very favorable offer.

On Friday, September 9th, I relayed the offer to my client in writing and asked him to consider it over the weekend.  He accepted the following Monday, September 12th and I received a check for the balance of my fee today, September 16th.

The terms of the settlement were as follows: Original debt of $17,581 settled for $13,185 payable over 24 months with a 6% annual interest rate for monthly payments of $584.37.

I saved my client $4,396 on the principal and got the attorney to agree to waive ALL his fee (this could have been awarded up to 1/3 the amount of the debt... or over $5,800).  I also negotiated a 2 year payment plan at a very low interest rate.

My fee was set at $900 with an up front refundable retainer of $100 so the balance came to $800 (which I received today).  All this with a few quick phone calls and short emails and faxes within about 4 weeks... and all 3 parties benefited.

Of course, my complete commercial debt resolution Business Plan System provides you with EVERYTHING you need to do this yourself.

Scott F. Soape

Repitition is Key to Marketing

When marketing your service, it is best to keep a common theme so you can build an identity for your business.  Repetition of a slogan, a look, a message, etc. will allow your target audience to quickly recognize your business.

Be sure to tie all your marketing and advertising pieces together (business cards, brochures, fliers, ads, etc.) with one or more common theme(s) and you will enhance you results.

Scott F. Soape

Contacting Prospective Clients

Once you have identified a prospective client that might be in need of your service, you will need to contact them. My comprehensive Business Plan System provides detailed instructions on how to go about this and includes my powerful Prospect Letter as well as a sample script. Many times, prospective clients will give you a call after they recieve the letter but often a follow-up call is required on your part.

You will quickly find that calling prospective clients is one of the easiest and most gratifying aspects of this profession. After all, you are offering to assist these folks with a very stressful and maybe even scary situation (business owners are often named as co-defendants to lawsuits along with their companies).

Learning about your risk-free service as an affordable alternative to resolving thier problem debts can be the best call a business owner receives!

Scott F. Soape

Marketing Material

There is no need for a lot of out-of-pocket expense as you get started in this profession. However, you will find it helpful to use whatever marketing material your budget will allow... business cards, letterhead, envelopes, flyers, brochures, etc. All of these will help you build a professional image for your business.

You may want to check out the online material at www.VistaPrint.com for some affordable ideas. Or simply visit a local print shop for a choice of styles that fit your budget and project the image you want. These folks can provide great insight into what might best fit your needs.

Scott F. Soape

Credit Scores

A recent article in the Wall Street Journal provided a helpful breakdown of FICO scores. It is always a good idea for anyone involved in this profession to be versed in all aspects of debt information. It is additionally helpful in our personal lives.

To view this article go to www.wsj.com and enter the author's name, Emily Glazer, in the search window. Her article is titled "Protect Credit Score".

Scott F. Soape

Secondary Case Leads

I always recommend people new to this profession start by checking recent court cases involving one business suing another business for monetary damages. These are ideal leads for several reasons... all of which are outlined in my comprehensive Business Plan System. The defendants (debtor businesses) typically love to hear about our service as an alternative to hiring an attorney. My system has a near 100% success rate in negotiating settlements for these cases.

You may also want to check out other lawsuits naming a business as the defendant but with another entity as the plaintiff (creditor). I refer to these as "secondary case leads". Plaintiffs for these cases are non-business entities and might include government agencies, individuals, etc. Although these cases will not typically qualify for our service, they are an indication the defendant business might be having financial difficulties and may need our service for other problem debts. Contacting them and offering to assist in resolving their other past due or disputed debts can often lead to landing a new client with several cases to work.

In my area there are even a couple of creditor companies that file numerous cases each month but will never negotiate settlements (their attorneys prefer to push for full judgments). Although I am unable to help the debtor businesses in these specific cases, I know they probably have other situations I can help with. These "secondary case leads" simply open the door for me to approach the defendant businesses with my service.

Scott F. Soape

My BBB Rating... A+!

Since founding my company in 1997, I have not received a single Better Business Bureau complaint... from clients or students of my program.

Of course this does not mean I have never encountered a problem or concern along the way. What it does mean is that I strive to always do the right thing in resolving any dispute.

My "no results, no charge" arrangement with clients naturally keeps complaints to a minimum. After all, who can complain about a service they don't have to pay for? I try to reflect this same attitude in my Business Plan System with my "no risk" 30 day full refund offer. Should a purchaser of my program decide for any reason it is not right for them, they can return the material for a complete refund of their $187.00 purchase price.

I am very proud of my "A+" BBB rating and I encourage you to click on the link below to see for yourself. Enter your zip code then click on the "Check Out A Business or Charity" button and enter my company information: Scott F Soape & Associates, LLC, Georgetown, TX.

www.bbb.org

Scott F. Soape

Keep Spreading the Word

Referrals from many different sources are a great way to ensure a constant stream of pre-qualified clients. Setting up a program to regularly remind your referral sources of your service will keep these leads flowing. My complete Business Plan System identifies several possibilities for great referral sources. Personally, I love to get out and visit with my referral sources one-on-one. I will either just drop in for a quick visit and leave a brochure or schedule an appointment for a short talk or lunch. If you prefer, you can simply mail a note, brochure or flyer. A brief email is also appropriate. I have also used the Internet business networking site www.LinkedIn.com to cultivate referrals with some success. Whatever method you choose, just be sure to follow through and keep spreading the word. The referrals are sure to follow! Scott F. Soape

Getting Started

I recently had a question from a new student asking about my recommendation to use a P.O. Box for a business address. Of course, as with many new start-up businesses, his concern was to keep expenses as low as possible until the revenues began arriving. My recommendation is to use a P.O. Box for an address, unless you are already set up with a regular office. This promotes an image of a REAL business... which can be important when you are trying to build trust with new or prospective clients (and creditors). However, everyone is on a different budget and, if you want to cut costs, you may certainly use your home address as you are getting started. Don't print too many business cards at first and, when your income allows, you can switch to a P.O. Box and print more cards. One of the great things about this profession is the ability to start up on a shoe-string budget and grow your business as fees are earned! Scott F. Soape

Avoid Default Judgments

Many times, a creditor's attorney will file a lawsuit simply in hopes of receiving a Default Judgment against a debtor business with NO intention to actually take a case to trial.

If the defendant (debtor business) fails to file an answer to the lawsuit by or before the answer date deadline, the court is likely to award a Default Judgment to the creditor for the full amount claimed, plus attorney's fees (up to 1/3 the amount of the debt), court costs and possibly back AND future interest on the debt. Once a Default Judgment is issued, the creditor's attorney will have additional legal tools available to hunt for and attach to assets of the debtor business.

This situation should be avoided if at all possible.

Even if a debtor business does not retain your services, you should encourage them to file an answer to the lawsuit. There is a chance this will be all it takes to keep a creditor at bay and the lawsuit could be dismissed by the plaintiff without further effort on the debtor business's part.

Scott F. Soape

"Typical" Clients

I am occasionally asked: "what type of businesses are your typical clients?" by students. Below is just a partial list of companies I have assisted over the years...

Painting Contractor
Law Firm
Event Coordinator / Catering Company
Logging Company
Maid Service
Machine Shop
Furniture Store
Heating & Air Conditioning Company
Software Developer
Moving & Storage Company
Computer Store
Cigar Shop
Nursery / Landscape Business
Swimming Pool Company
Beauty Supply Business

Transmission Repair Shop

Trucking Corporation
Gutter Installer
Temporary Employment Agency
Magazine Distributor
Oil Field Supply Company
Automobile Collision Repair Shop

The point is, there are really no "typical" clients in this profession. All types of businesses encounter financial disputes at one time or another. There are ALWAYS cases to work and these situations develop all over the country on a daily basis... and my complete commercial debt resolution Business Plan System shows you how & where to find them.

Scott F. Soape

Payment Plan Calculations

Although they typically result in the best discounts, many businesses will not be in a position to make lump-sum payments to settle their problem debts. You will need to negotiate payment plans for these clients.

I always try to start negotiations with payment plans for the longest time period possible and at a 0% interest rate. However, many creditors will require some sort of interest rate if they are going to deal with extended payments. Using one of the many online calculators makes these offers simple. Here are just a few...

http://www.bankrate.com/

www.Calculator.com

www.moneychimp.com/calculator

You may need to click further to reach the "loan" calculator (auto, mortgage, etc.) on these sites. Just plug in the total amount of the settlement offer, the interest rate and the number of months (or years) and you can quickly calculate the monthly payment to complete your offer.

Of course, my complete Business Plan System provides all the information you need to negotiate ANY type of settlement.

Scott F. Soape

A Couple More Student Comments

I continue to receive positive feedback on my commercial debt resolution Business Plan System. Below are just a couple I recently received...


"Scott, I just wanted to take a moment to tell you I love the course and see its potential." Carlos P., California

"Hi Scott, Received your Business Plan System today. Good stuff!" David F., Minnesota


As always, I welcome any questions or concerns from anyone considering investing in my program. Please fee free to call or email me.

Scott F. Soape

A Surprise Case

A courthouse visit late last December generated about a dozen qualified leads for recent lawsuits (my Business Plan System explains in detail how to find these). I went through my usual process of mailing my powerful Prospect Letter and following up with phone calls a few days later. These efforts resulted in my landing several fee generating clients within about a week or two.

However, I was never able to speak directly with one of the prospects and could only leave a couple of recorded messages, the last being on January 6th (leaving more than 2 or 3 messages becomes a nuisance). I figured this business had either retained an attorney or had closed their doors for good.

To my surprise, I received a call on January 31st from the owner and he retained my services the next day. He had waited until the last minute to deal with this problem so I immediately requested and was granted an extension on the answer date to the lawsuit. After a couple of emails and ONE week later, I had negotiated a discounted out-of-court settlement and earned a $650 fee...

Original Debt: $11,030
Settlement: $8,250 payable over 24 months at a 6% APR
Savings to Client: $2,780 (plus waived attorney's fee of $3,670)

This is just one example to how getting the word out about your service can result in cases you never thought you might get. Continuing to prospect for clients on a regular basis can pay off in unexpected ways.

Scott F. Soape

Using a Virtual Office

My commercial debt resolution Business Plan System easily lends itself to a home-office workspace if you do not want to bother with a regular office. However, you may also want to consider using the services of one of the many "virtual office" companies.

There are many pros and cons to these types of services and a wide range of costs so you will need to make your decision entirely on an individual basis. I located a website that provides a very thorough explanation of exactly what these services entail. Please click the below link to see the whole story...

www.communication.howstuffworks.com/convergence/virtual-office

Scott F. Soape

Attention: Financial Professionals

If you already happen to be a CPA, insurance agent, financial planner, accountant, judgment enforcer, etc., adding commercial debt resolution to your practice could easily add extra revenues to your business.

One of the great things about this profession is the URGENCY of the cases. When dealing with recent lawsuits for monetary damages, clients must address the situations quickly or risk judgments in the creditors' favor. When you resolve these cases to their satisfaction, the door will be wide open to offer any other services you have.

Most financial services have no urgency and clients will often put off any action. Constantly reminding clients of the need to address these situations is about the only way to spur action on their part. This can take weeks, months, even years.

Resolving court-case financial disputes usually results in cases being landed immediately and fees being earned and paid within 2 to 5 weeks.

Although a background in financial services is NOT necessary to work this business, adding commercial debt resolution to your business mix can add substantial fee income AND help build your core practice area.

Scott F. Soape

Some Related BBB Warnings

Please follow the link below to view some recent Better Business Bureau warnings related to debt relief (consumer not commercial) and work-from-home scams. Be assured, my commercial debt resolution Business Plan System does NOT fall into either of these categories and my company continues to enjoy an "A" rating from the BBB.

www.austin.bbb.org

Then click on their link for the "Top 10 Scams of 2010".

Scott F. Soape