Debt Resolution Business

Get Familiar with Credit Reports & Scores

2012-01-19T08:17:00.000-06:00

As a commercial debt resolution professional, you need to be familiar with credit reports and credit scores. The BBB recently posted a brief article regarding these topics on their website you might find helpful. Please click on the below link to view. I also suggest you take the time to get a copy of your own free credit report at www.AnnualCreditReport.com .

http://watchyourbuck.com/2012/01/18/know-the-difference-between-a-credit-report-and-credit-score/

Scott F. Soape

The Bigger the Creditor, the Better!

2011-12-31T14:04:00.000-06:00

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 of 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

2011-11-23T08:49:00.001-06:00

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

2011-10-13T09:11:00.000-05:00

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"

2011-10-01T13:24:00.000-05:00

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

2011-09-22T08:54:00.000-05:00

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

2011-09-16T15:22:00.000-05:00

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

2011-09-13T10:49:00.001-05:00

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

2011-07-21T12:45:00.003-05:00

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

2011-06-29T16:01:00.004-05:00

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

2011-05-26T11:12:00.004-05:00

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

2011-05-12T08:49:00.000-05:00

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+!

2011-04-29T09:08:00.006-05:00

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

2011-04-17T09:27:00.002-05:00

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

2011-04-09T09:43:00.005-05:00

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

2011-03-24T15:15:00.002-05:00

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

2011-03-07T16:10:00.005-06:00

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

2011-03-01T14:40:00.004-06:00

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

2011-02-12T10:27:00.002-06:00

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

2011-02-08T10:00:00.007-06:00

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

2011-02-02T14:20:00.002-06:00

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

2011-01-19T10:56:00.002-06:00

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

2011-01-05T14:28:00.002-06:00

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

Fees

2010-12-17T08:35:00.002-06:00

Over the years, I have become more and more in favor of flat fees as opposed to fees based on a percentage of savings.

Most commercial debt resolution specialists will charge a fee of 35% of the amount they save a client on a debt. If they save a client $10,000, their fee will be $3,500. (The 35% figure probably stems from the practice of attorneys charging 1/3 of the amount their client collects in a lawsuit.) I have three problems with this practice in our business. First, the percentage is too large and depletes the actual savings to the client far too much. Second, it has the potential to create a new problem debt for the client. Third, the fee is completely unknown until negotiations are finished and could be an unpleasant surprise to the client.

When a creditor's attorney charges 1/3 of the amount they collect from a debtor, they simply shave that amount off the funds as they are received with no out-of-pocket cost to their client. When debt negotiators collect 35% of the amount they save a client, the funds must come from the client's pocket... even as the client pays whatever settlement is negotiated.

For these reasons, my preference has become the flat fee for most cases. There are no surprises and the client must still approve any settlements before they are accepted. I also have found using a flat fee gives me an edge over my competition. There is a very simple calculation I use for my flat fee cases and I am happy to share this with any of my students. Please feel free to contact me.

However, I still use percentage fees for some cases such as debts tied to a business and / or real estate being sold. These fees will come from the proceeds of the sale with no out-of-pocket cost to the client. They can also be extremely lucrative providing revenues in the tens of thousands of dollars.

Scott F. Soape

Free Credit Reports

2010-11-16T10:18:00.004-06:00

Everyone is entitled to a FREE annual credit report from the primary credit reporting agencies and you may want to advise your clients of this. Reviewing these reports allows people to spot errors and verify what is being reported to creditors. It also helps to prevent fraud.

Although the frequent TV commercials you may have seen with the catchy tune asks folks to go to a different web site, the official web site for this truly FREE request is www.annualcreditreport.com. People may request a free report from each of the 3 agencies every 12 months. They may also request a credit score at a nominal charge, but this is not required.

Since there are 3 different credit reporting agencies and you can only get 1 report from each per year, I always recommend my clients request one report from each company every 4 months. This allows the company to make any changes needed with time for them to be reflected on the next requested FREE report from one of the other companies. Four months after the 3rd report is received, they can request a report from the 1st company again since 12 months will have passed. Staggering requests for FREE credit reports in this manner provides a snapshot of an individual's credit standing on 3 occasions throughout each year.

Of course, doing this yourself is always advisable and it will also help you get familiar with the reporting formats in case clients have any questions about their own credit reports.

Scott F. Soape

Consumer Credit Counseling

2010-11-16T10:01:00.003-06:00

You will undoubtedly encounter situations where a business owner also has some problem personal debts along with their commercial debt during your career as a debt resolution specialist. As you may know, I always suggest you avoid these "retail" cases for various reasons, not the least of which are the complicated and cumbersome consumer debt protection regulations.

An excellent tool to use for these cases is the "National Foundation for Credit Counseling" and their web site is www.nfcc.org. Members of this organization have been screened and approved to provide credit counseling services to individuals. Prospective clients can easily enter their zip code on the search page to find service providers in or near their area, or they can search for help through the Internet. Counseling services are always low cost and sometimes even free.

By referring individuals to this organization for their problem personal debts you will solidify your position as a trusted professional, avoid pitfalls in working these cases and truly add value to your service.

Scott F. Soape

Electronic Correspondence

2010-11-12T08:28:00.002-06:00

A student recently pointed out that my material does not completely address the use of fax and email in communicating with clients and creditor agents. I always appreciate this kind of feedback and I am updating the program to include this information but thought I would also address this issue here.

The use of fax and email for official correspondences (such as contracts and settlement offers) is widely accepted these days and will typically hold up if challenged in court. This is often desirable in order to expedite communication with clients and creditor agents especially when deadlines are imminent.

I also will use email to offer my service to prospective clients whenever I can locate a direct email address for a company owner. These can often be found with a Google search for a company web site. Sending my powerful "Prospect Letter" via email greatly speeds up landing clients.

Incorporating fax and email for correspondence into your commercial debt resolution practice will result in quicker settlements and quicker fee payments.

Scott F. Soape

"The Harder I Work, The Luckier I Get"

2010-10-20T10:18:00.004-05:00

The above quote is something my father used to say. It may not be completely original but, over the years, I have found it does make sense. Whenever I experience a special success in my business, I can usually relate it to some extra effort I previously put in to get there.

The commercial debt resolution profession is not one of those "sit back and wait for the checks to arrive" phony business opportunities. It is a very real profession that requires real efforts to achieve a high level of success.

My Business Plan System provides my students with all the information needed to work this business. However, it is entirely up to each individual to decide exactly how much time and effort they are willing to invest to reach the level of results they desire.

The cases are plentiful and arise by the hundreds daily around the country... but you have to get them.

As with most worthwhile endeavors, the more you put into building your business, the more you will get out. Other people may just think you are "lucky" when you succeed, but you will know the real reason for your success is your hard work.

Scott F. Soape

Build Referral Relationships

2010-10-08T10:03:00.002-05:00

As your commercial debt resolution practice grows, you will want to constantly cultivate outside referral relationships to ensure a steady stream of qualified leads. My complete Business Plan System shows you how to do this.

CPAs, bankers, bookkeeping services, business brokers... anyone you can think of that might encounter businesses having financial troubles. ALL of these folks can steer debt resolution cases your way.

Set up a regular marketing program to notify these people of your "risk free" service for their contacts. You may not see the fruits of your labor for some time but, be assured, the cases will be forthcoming. Sending at least a quarterly letter, flyer, brochure or email will keep your name at the front of their mind whenever a situation arises.

Your service will be an arrow in the quiver of these other professionals to assist their clients.

Although some professionals will not take advantage for many reasons, be sure to offer a sharing arrangement for any earned fees from referred cases.

Building a broad and varied network of referral relationships over time will keep your pipeline full of new cases.

Scott F. Soape

BBB Warning

2010-09-02T11:48:00.000-05:00

Following is a recent BBB warning...

"Dealing with Phony Debt Collection Calls

Recently several local consumers have notified BBB about phone calls from individuals pretending to be debt collectors and threatening them with legal action or arrest. The consumers are told they must pay a supposed outstanding debt over the phone immediately. In some cases, the callers have social security numbers, bank information and the consumer’s address. BBB wants you to know what to do if a stranger calls claiming you owe them money.

4 Tips to Help You Fight Debt Collection Scams:

1) Ask Questions About the Debt

2) Request Written Proof

3) Don’t Give or Confirm Any Personal Information

4) Tell BBB and the FTC

Have you run across a scam? Be sure to follow us on Facebook and Twitter for the latest trends, tips and to let us know if you have any topics you want BBB to address."

FREE Leads!

2010-08-24T14:06:00.005-05:00

One of the most common questions I get from people looking into the commercial debt resolution profession is: "How and where do I locate prospective clients?"

I always know part of their concern is the potential expense of advertising in order to draw in business.

The great news is: "No advertising is needed to get started and... leads are typically FREE to locate and obtain!"

I always advise people new to this profession to start by checking their local court systems for recent lawsuits involving one business suing another for monetary damages. These cases arise all the time, all over the country and, since they are PUBLIC INFORMATION, they are usually FREE to view. The lawsuits will indicate the parties involved including names and addresses, a brief description of the dispute and the dollar amount of the claim. Basically, everything we need.

The added benefit of these situations is their URGENCY. Typically, the defendant (debtor business) only has a short time to respond or they risk a default judgment being issued against them. This typically requires paying an attorney hundreds to thousands of dollars, win or lose. When we offer to negotiate a discounted, out-of-court settlement on their behalf... on a no results / no cost basis... their choice becomes easy.

Of course, my complete Business Plan System provides ALL the information needed to locate these cases, contact the debtor businesses, offer the service and negotiate successful settlements.

There are also MANY other ways to bring in business and these are all covered in my program. But the fastest, least expensive and most productive way to get started is through the court systems. Often, this information is even available on-line.

Scott F. Soape

A Rewarding Career on More Than One Level

2010-08-10T14:33:00.004-05:00

There is no question this profession has the ability to provide a substantial ongoing revenue stream from earned fees.

What is harder to express and identify is the psychological rewards that come from helping clients who are experiencing a difficult financial time.

Heavy handed collection agents often refer to debtors as "dead beats" in an effort to place them in an unflattering light so they can justify their collection tactics. I think you would find this attitude is surprisingly prevalent in the boiler-room collection call centers around the country. It helps the collection agents live with what they are doing.

In my many years in this profession, I have found the majority of debtor business owners simply find themselves confronted with circumstances beyond their control. Most have every good intention of paying their debts in a timely manner but, for many different reasons, are unable. Sometimes it is due to poor financial management but more often these businesses are waiting to be paid by other businesses before they can, in turn, pay their own bills. It does not take long for the domino effect to begin.

The emotional reward for assisting these business people in keeping their doors open for business can be as great as any earned fee. As a commercial debt negotiator, you are truly one of the GOOD GUYS.

Scott F. Soape

New FTC Rule for CONSUMER Debt Settlement

2010-07-30T13:11:00.002-05:00

Once again the CONSUMER debt settlement industry has drawn the attention of regulators.

Thankfully, this rule does not apply to our Commercial Debt Settlemment industry. You may click on the below link to view an Associated Press article by Candice Choi for the full story...

New rule cracks down on debt settlement industry

Keeping Records

2010-07-13T10:23:00.002-05:00

Once you become a professional commercial debt resolution negotiator, you will quickly realize the importance of keeping thorough records.

Start by creating a file for each client as they retain your service. I like to record the primary contact information for my client on the inside cover of the file folder for quick reference. Keep copies of all contracts and other documents for each individual case in this file (multiple cases for one company are common).

You will also want to make notes of each and every conversation relating to a debt settlement. Date, time, name and summary of the conversation can be essential if there is ever a disagreement or failed memory by a party to the case. Always keep a clean legal pad handy for notes.

Additionally, as you work more and more cases, you may find you are dealing with the same commercial creditor and / or the same creditor agent. Keeping track of the past (or best) settlement terms will give you an edge for later negotiations.

Having the ability to review records of your past cases or even just recent communications with clients or agents will allow you to operate efficiently and professionally in a fast paced environment.

Scott F. Soape

Debt Settlement Firms Under Scrutiny

2010-06-19T10:25:00.004-05:00

An article in today's New York Times by Peter S. Goodman reports on the negative aspects of the consumer debt settlement industry. Specifically, Mr. Goodman relates the pitfalls of companies that offer to cut credit card debt for individuals. A copy of the article can be viewed online at www.nytimes.com under today's business section (you can submit a search under "Peter S. Goodman"; the article is titled "The New Poor, Peddling Relief, Firms Put Debtors in Deeper Hole ...").

This information further supports what I have been telling people for a long time... it is best to AVOID consumer / retail / individual debt resolution.

By dealing with COMMERCIAL clients only and by using my "no results/ no charge" program, you will not have to worry about the concerns outlined in the article. And, you will be able to build a long term, lucrative, HONEST, professional practice.

Scott F. Soape

A Recent AVERAGE Case

2010-06-18T16:20:00.006-05:00

On May 20th a new client retained my services to negotiate a discounted out-of-court settlement on his company's behalf based on an email I had sent him. His business had been sued by an insurance company that had provided worker's compensation insurance. My client had not paid premiums as billed and was sued for $10,251.

That same day I sent a low-ball settlement offer to the creditor's attorney. Within a day, I received a response declining the offer along with information indicating the attorney would be taking the following week off and granting an extension to the answer date on the lawsuit.

By the way, this creditor files many lawsuits for similar situations in my area on a regular basis. I have dealt with their attorney often over the years and I am familiar with her general guidelines for most settlements. She, in turn, knows that I can be trusted and that I can typically assist in arriving at acceptable settlement terms. My involvement saves her some time and effort with these cases.

Upon the attorney's return from vacation, I sent another offer for a little higher total dollar amount and she quickly countered with the least she would be willing to accept.

I informed my client of the final proposed settlement terms on June 15th and he accepted on June 16th. I received payment for my fee in the amount of $500 today, June 18th.

Within 4 weeks (it would have been shorter if not for the attorney's vacation) I had landed a client and completed a very favorable out-of-court settlement on their behalf... and deposited a check for a nice fee... all with about 3 or 4 quick emails.

In this case, I saved my client $2,251 on the debt PLUS over $3,400 in potential attorney's fees that could have been awarded to the creditor's /plaintiff's attorney. In addition, the settlement was set up on a no interest payment plan over 11 months. ALL parties benefited.

Keep in mind, this is just an average case generating an average fee... and I work these cases all the time.

My complete commercial debt resolution Business Plan System will show you how to do the same thing.

Scott F. Soape

You Can't Win Them All

2010-06-10T08:42:00.002-05:00

You will encounter all kinds of past due and disputed debts during your career as a commercial debt resolution specialist. Using my time tested and proven techniques to negotiate discounted settlements for your debtor business clients will result in successful resolutions for most of your cases. However, you will not be able to resolve every case.

Although it is usually in the best interest of BOTH parties to compromise and settle these disputes for an amount less than claimed, some creditors will still demand payment in full without a discount or payment terms.

This is just part of our profession and should not be viewed as failure on your part.

Once you have been informed by a creditor or their agent that they are firm in their demand for full payment, you should quickly notify your client of such. If there is a lawsuit pending, encourage your client to retain competent legal counsel to address the situation as soon as possible. Of course, you will need to quickly refund any retainer you have received for these cases.

Most cases you encounter can be resolved to the benefit of your client (and the creditor business) and substantial fees can be earned for your valuable service. But, do not be surprised or discouraged if you eventually encounter cases that you are unable to resolve. It's just part of the business.

Scott F. Soape

Commercial (NOT Retail) Debt Resolution

2010-05-04T09:29:00.002-05:00

A student recently referred me to a debt resolution Internet webinar to which he had received an invitation. The invitation indicated this person had "found a select group of people who are quietly using debt settlement as a "secret" revenue stream to massively increase their monthly cash flow...". The invitation went on to say "collectively, these experts are earning TENS OF THOUSANDS of dollars a MONTH in debt settlement, most PART TIME!" (their emphasis). Of course, "collectively" could mean that 1000 "experts" are only earning $10 or $20 per month, but I digress.

Always eager to learn new or "secret" ways to generate revenues in this profession, I decided to listen in on the webinar.

Sadly, this turned out to be yet another situation where someone has found a way to take advantage of the unfortunate folks who find they have more debt than they can handle. The "secret" revenue stream involved signing people up to reduce their debts on a regular payment plan while skimming a percentage fee for this service off the top of each payment. The only difference was that this program was directed at out of work real estate professionals looking for income ideas.

No real assistance was involved and, if people were to do this themselves, they would pay off their debts much earlier for less money. These so called services have given debt resolution (or settlement) a bad name for good reason and have resulted in increased regulation on the consumer / retail side of the profession to protect vulnerable individuals.

My Commercial Debt Resolution Business Plan System teaches people how to work with BUSINESSES and / or BUSINESS OWNERS to resolve their past due or disputed BUSINESS DEBTS on a case-by-case basis. Fees are agreed upon up-front in a written contract and are earned only for results. They are only paid upon acceptance of each settlement by the business and not skimmed from any ongoing payment plans.

I encourage people to avoid consumer / retail debt settlement situations for many reasons (please see previous related blog posts). This new twist is just the same song with a different tune and should be avoided as well.

With the information from my Business Plan System, anyone can earn substantial, ongoing and HONEST fees in the Commercial Debt Resolution profession.

Scott F. Soape

An Improving Economy Improves Our Business!

2010-04-13T13:21:00.003-05:00

You would be right to think that down economic times are good for the commercial debt resolution business. During down times, many debtor companies find themselves unable to pay bills they could otherwise afford. Obviously, these companies need our assistance to work out settlements and / or payment terms with their creditors.

However, when the economy improves and these same debtor companies start to see additional revenues flowing in, our business will also benefit.

Here's why...

If a debtor company has been able to weather an extended downturn in business and keep their creditors at bay, they could be in a position to offer lump-sum settlements to these same creditors when business turns around for the better. Or, they might simply want to set up payment plans to shrink their debts more quickly with their new improved cash flow.

Whether or not the commercial creditor is aware of your client's improved finances, they may still be willing to do whatever it takes to start receiving payments.

Approaching debtor companies with your "NO RISK" offer to settle debts as they are seeing increased revenues can be your easiest cases to land.

Scott F. Soape

Overcoming Objections

2010-03-11T10:29:00.003-06:00

I recently had an inquiry from a new student about overcoming common objections and I thought I would share my thoughts here.

Perhaps surprisingly, you will find that many debtor business owners are simply in denial about their past due debts. If they do not have the resources available to pay, they often ignore the demands for payment. Unfortunately, there is not much we can do about that kind of attitude apart from explaining we intend to save them as much as possible and they will have full control over whether they accept or reject the final settlement terms. Usually these folks just ignore all correspondence and phone calls regarding their debts.

Other business owners will have a "come and get me" attitude and just don't care if a judgment is issued against them for a debt. Their rationale is "there are no assets so who cares about judgments or liens". Plus, if the business is incorporated and the owner is not named as a defendant, they can shut the doors and walk away without any personal liability. Again, offering to negotiate a settlement on a no results / no charge basis could land a paying client in this situation... they have nothing to lose and potentially a great deal to gain.

Sometimes a prospective client will indicate they plan to use their attorney. You can suggest these folks allow you to attempt a settlement first and, if you can't reach acceptable terms, they can always use their attorney (nothing to lose).

On rare occasions you might have an objection to your fee. Explaining you plan so save them substantially more than your fee can usually land these clients.

My complete commercial debt resolution Business Plan System provides a powerful sample prospect letter that often results in new clients calling you for assistance. Also included is a sample prospect script to use for your follow-up calls which is usually enough to garner business. Although objections are rare, using the above suggestions to overcome them should help you quickly build a profitable practice.

Scott F. Soape

Disputed Debts

2010-02-26T09:57:00.002-06:00

Most cases you work will be due to cash flow problems with the debtor business. Negotiating settlements for these cases simply entails convincing the creditor they should take whatever is being offered or risk receiving even less.

Occasionally, though, you will come across cases where the debtor business disputes the amount claimed to be due, either in part or in total. These cases require a different negotiation strategy. If the debtor business is not willing to pay ANYTHING, it is probably best to move on to another case rather than wasting your time. However if your client is willing to pay at least a portion of the amount claimed to be due, you will have a chance of reaching a settlement.

Ask your client for a dollar amount range they would find acceptable and start your offers with the creditor on the low end. You will quickly know if the creditor is willing to negotiate and take less than the original claim. From there, it is just a matter of a little back-and-forth with counter offers until a final amount is agreed upon.

Disputed debts are a little trickier than other cases but the fees are just as lucrative if you can reach a favorable settlement for your client. My comlete Business Plan System provides guidlines and suggestions for negotiating all types of settlements.

Scott F. Soape

Get The Word Out!

2010-01-29T10:47:00.002-06:00

You might be able to provide the greatest commercial debt settlement service in the WORLD! But, you have to let people know.

As the saying goes... not advertising your service is kind of like WINKING IN THE DARK; nobody else knows you're doing it!

Use whatever avenues your budget will allow to spread the word about your unique service. Run small ads in your local newspaper, send information to CPAs, bankers, business brokers and other financial professionals. Set up a WEB SITE. Offer yourself as a source of information to local reporters. Post your business card or a flier on public bulletin boards.

Targeted information sent to defendants of recent commercial lawsuits will always get results. Be sure you also incorporate a broad based advertising campaign into your marketing efforts to ensure an ongoing source of new business outside of court cases.

Scott F. Soape

Negotiating with Creditor Agents

2010-01-15T13:56:00.002-06:00

Most of your settlement negotiations will be with creditor agents rather than directly with the creditor business. If a debt is sufficiently past-due, you will probably deal with a collection agent. If a lawsuit has been filed, you will deal with the creditor's attorney. Each of these agents has a slightly different agenda but both will try to get the most money on the debt for their client (the creditor business).

Collection agents are typically paid a percentage of whatever they can collect so they have a vested interest in getting as much as possible. Attorneys, on the other hand, are paid either an hourly rate or a flat fee for their services. In both situations, your job will be to convince them they should be happy with the discounted amount you are offering. Both of these agents know some cash in hand is always worth more than the hope of more cash in the future.

There is no reason to feel intimidated when negotiating with collection agents or attorneys. My Business Plan System provides negotiation techniques that can easily be adapted to any type of settlement, regardless of who you deal with. Using my techniques, you will come across as a veteran professional negotiator from the start.

Scott F. Soape

Real Case Examples

2009-12-31T09:16:00.004-06:00

Below are just a handful of cases I have closed in the past couple of weeks:

1. Restoration Company
Original Debt: $31,368
Settlement: $23,536
Savings: $7,832
Fee: $650

2. Air Conditioning Company
Original Debt: $5,837
Settlement: $4,230
Savings: $1,607
Fee: $350

3. Pest Control Company
Original Debt: $15,364
Settlement: $13,500
Savings: $1,864
Fee: $650

4. Roofing Company
Original Debt: $4,845
Settlement: $3,640
Savings: $1,205
Fee: $300

5. Transmission Repair Company
Original Debt: $5,589
Settlement: $4,471
Savings: $1,118
Fee: $350

In each case, I was able to negotiate a manageable monthly payment plan for my client ranging from 12 to 27 months... ALL at 0% interest. And, the savings shown does NOT include waived attorney fees for the creditor's attorney (typically 1/3 the amount of the debt) nor waived court costs of approximately $200 per case. Additionally, I acquired all of these cases FREE from public information.

Negotiations took between 3 to 4 weeks on each case and entailed one initial letter to the creditor's agent followed by a couple of emails to finalize the settlements.

My complete commercial debt resolution Business Plan System provides you with EVERYTHING needed to work in this highly rewarding profession... and to start earning your own fees within 2 to 3 weeks of receiving the material.

Start your New Year with this new profession! Please feel free to contact me with any questions before placing your order.

Scott F. Soape

Helpful Websites (Part 2)

2009-12-02T07:49:00.004-06:00

My complete commercial debt resolution Business Plan System shows you in detail how to obtain great leads from pending court cases where one business is suing another business for monetary damages (only one of several ways to get leads). Many times, the case information includes all the information you will need to contact the debtor business owner and offer your service. However, sometimes the information is incomplete and a little extra research is needed.

One of the best tools for finding a current address, phone number and the name of an owner for a business is http://www.manta.com/ . You can quickly plug in the business name with a city and/ or state to get a full listing of related matches. This will allow you to confirm you are contacting the right individual and company.

To quickly find a phone number for a business or an individual or to confirm an address, you can go to http://www.yellowpages.com/ and enter a variety of information depending on what you have available. Often, this search will provide a company web site link to get even more information and even email addresses for the owner(s).

If you are researching a lead for a sole proprietorship with limited information, you can find great current and historical info with http://www.zabasearch.com/ . Enter a name and city or state to get a full listing of possible matches.

Of course, a quick Google search will often provide all the information you need on a business or individual.

There are many tools available online to assist with your debt resolution practice. Be sure to avail yourself of as many as you need in order to build a successful business.

Scott F. Soape

Please feel free to post your comments with any other helpful web sites you may know of.

Spend a Little to Make a LOT!

2009-11-19T09:35:00.002-06:00

Would you spend $2 if it could make you $200? Would you spend $200 if it could make you THOUSANDS OF DOLLARS?

My Business Plan System for commercial debt resolution costs less than $200 but can easily result in ongoing fees from as little as $300 to several thousand dollars per case. There is a very real need for this service throughout the country and my program is tried, tested and PROVEN to get results. Fees can often be earned and received within 2 to 4 weeks of receiving the material.

Successful business owners know they have to spend money to make money. Smart investments in advertising, marketing, product development, streamlined manufacturing, etc. will result in increased revenues and greater PROFITS.

Don't be afraid to invest a little money in your future if the odds are in your favor for a high pay-off.

Scott F. Soape

Multiple Cases From One Client

2009-11-09T08:58:00.003-06:00

It should come as no surprise that a business experiencing problems paying one creditor most likely is having problems with other creditors. Since most clients you encounter will be having cash flow difficulties (not enough money coming in to pay all the bills), you can bet they have several creditors hounding them for payment.

Once the door is open for you to work one case, the other cases are an easy sell and can result in multiple fees from a single client. Always ask if they have other problem creditors whenever you land a new client. This can be the easiest source of new business for your debt resolution practice.

Scott F. Soape

Extra Ammunition for Favorable Settlements

2009-10-28T11:59:00.003-05:00

In your negotiations for a discounted settlement with creditors, it sometimes helps to offer proof of financial hardship for your client. Many creditors are willing to accept better settlement terms if your client can substantiate a real NEED.

Always check with your client first before you offer any financial information to the creditor. If the information provided by your client does not reflect a problem, then there is no need to offer it to the creditor. However, if the information shows financial problems, ask the creditor or their agent if they are willing to review it to help in the settlement.

Tax returns, financial statements, bank statements or even a compilation of past due invoices from other creditors might help in your negotiations.

Be sure to use all the ammunition at your disposal in order to obtain the VERY BEST settlement terms for your client.

Scott F. Soape

Work Part-Time!

2009-10-13T11:19:00.004-05:00

Commercial debt resolution is a great profession to work on a part-time basis. The actual time required to negotiate a settlement is very small, often entailing less than an hour or two in total. Plus, the limited written correspondence can easily be done evenings or weekends.

Even if you are not able to spare an hour or so during the day once a week or two to personally collect information on prospective clients, leads can often be acquired on-line at your convenience.

Closing just one case can result in a fee from as little as $300 or $400 to as much as several thousand dollars with the same amount of time and effort. Larger cases are typically no more difficult to work than smaller cases.

If you are simply looking for a way to supplement your current income without spending a lot of time, my Business Plan System for commercial debt resolution may be your answer. As always, I encourage everyone to contact me with specific questions before placing an order.

Scott F. Soape

Stamps.com

2009-09-30T13:39:00.004-05:00

I have recently started using Stamps.com for my business postage needs and I recommend this service to all my students (and any other small business owners).

Although I am still learning some of the bells & whistles, this service allows anyone with a computer and Internet connection to quickly and easily print envelopes or labels with postage in place. No more trips to the post office to buy stamps. With the assistance of a good scale, you can even calculate your own postage needs for packages.

The program can even be configured for customized settings that will allow you a personal look with your mailings. It can also be integrated with common address book and word processing software.

One more tool for small business owners to save time and effort.

Scott F. Soape

You Are Providing a Valuable Service

2009-09-17T08:18:00.003-05:00

I typically try to emphasize what a great profession this is for the potential to make a substantial amount of money through fees and other related avenues. However, it is important not to lose sight of the fact that you are providing a very valuable service for each of your clients in the process. In fact, that is exactly why companies are willing to pay so well for your service.

As a professional commercial debt negotiator, you will often save your business clients SEVERAL THOUSANDS OF DOLLARS on each and every settlement. They are more than happy to pay you a small percentage of this amount since they still come out way ahead.

Of course, my Business Plan System shows you how to operate on a "No Results / No Charge" basis so there is absolutely no risk to clients when they retain your service. What decision could be easier?

The potential for making a lot of money is real. But remember it is only because there is TRUE VALUE to the service you provide.

Scott F. Soape

Create Multiple Income Streams

2009-09-02T09:22:00.003-05:00

The commercial debt resolution profession provides an excellent opportunity to create multiple income streams.

During the course of contacting prospective clients you will often encounter business owners that are either 1. considering selling or 2. interested in factoring their accounts receivable. Both situations offer the opportunity for YOU to earn substantial referral fees!

If a business owner is thinking about selling their company, you can relay this information to a business broker. Your referral fee for this simple "introduction" will typically be 10% of the business broker's fee. A small business selling for $500,000 could land you a fee of $5,000 just for putting the business owner in touch with a business broker!

Factoring is a specialized way for a company to receive immediate cash for their accounts receivable. Factoring companies will "loan" up to about 90% toward receivables for a business and then collect the money on their behalf. Their fee for this service is usually 5% and they will pay YOU 10% of their fee. If they factor $200,000 in receivables, your referral fee would be $1,000 ... and this is usually an ongoing service. You could potentially receive this referral fee month after month!

The fees you receive from your clients for negotiating settlements can provide a substantial income in this profession. And the opportunity for additional income will always be possible if you stay alert to these other situations. Keep an open mind and ALWAYS ASK for more business!

Scott F. Soape

Why This Profession?

2009-08-19T09:12:00.003-05:00

With all the choices available for business opportunities, I am occasionally asked "why should I choose commercial debt resolution"? There are several very compelling reasons:

1. This profession provides the potential for substantial fee income. Fees can range from a few hundred dollars per case to several thousand dollars. Larger fees are no more difficult to earn than smaller fees.

2. Fees can be quickly earned and received... often within 2 to 4 weeks of landing a client. Negotiations to close a case typically entail only a letter or two and YOU GET PAID as soon as the settlement is accepted by your client.

3. Start-up costs are nominal. With my Business Plan System in hand, your other initial costs to operate can be well under $100. As your business grows, you can apply earned revenues to whatever area you want or simply grow your bank account.

4. The profession is easy to learn. My material provides you with EVERYTHING you need to quickly get up and running in an easily understandable format.

5. Cases are plentiful. There is more business out there than several hundred debt resolution professionals could handle! These situations arise daily all over the country and they are EASY TO LOCATE.

These are just a few of the many great reasons to give this business a try.

I realize people have many choices as they look for full-time or part-time ways to earn income and I am always available to answer whatever questions anyone may have about this profession. I truly believe this is the BEST profession under any economic circumstances and I encourage anyone looking for a new business to give my commercial debt resolution Business Plan System serious consideration before making a choice.

Scott F. Soape

Working Different Jurisdictions

2009-07-30T12:51:00.002-05:00

The more leads you can access, the better your chances of getting fee paying clients and recent lawsuits represent the BEST leads. If your area only has a few cases filed each week, you may find it helpful to check other jurisdictions.

More and more jurisdictions are providing online access for this public information. Do a little research to find jurisdictions that will let you get this information through the Internet. Although this business can easily be operated nationwide, most commercial debt negotiators find local leads are the best.

Check mid-sized cities around your area for online case information first. Big cities will have plenty of cases, but they will also have more competition. Smaller cities are often overlooked and can be GOLDMINES for great case leads.

If you have trouble finding online case information in an area you think would be profitable, consider using my Associate Program System to recruit your own associates. They will gather the case leads directly from the courthouse and pay you for the opportunity to share any earned fees.

Branch out to new jurisdictions to expand your base of operations AND increase your revenues.

Scott F. Soape

Real Results

2009-07-05T10:17:00.003-05:00

I get a lot of great feedback from students who have purchased my Business Plan System regarding the quality of the material and their own personal success stories. Below are just a couple of examples:

"Scott: Just a quick note to thank you for your business plan. I had a similar plan several years ago while living in Florida, however in a move to Michigan it was lost in transfer. I have been searching for a similar one since then and was pleasantly surprised to not only find one but to find one much more valuable than the original. Thanks so much again for such a professional and complete plan."

Max T.

And...

"Hi Scott, I did one. Printing job. Took 3 phone calls... $800. Pretty Good."

Sheryl T.

(By the way, Sheryl sent me this note about 2 weeks after receiving my material.)

These are just a couple of examples but you get the idea. This profession is REAL and my material is THE BEST. A small investment to learn how to operate your own lucrative commercial debt resolution practice can quickly pay off in an ongoing stream of substantial fees for your valuable services.

Scott F. Soape

Contacting Prospective Clients

2009-06-19T10:12:00.002-05:00

My Business Plan System material provides several ways to easily locate prospects. The next step is contacting those prospects to offer your valuable service.

For most cases, I suggest you first send a letter. If you use the powerful "Prospect Letter" provided with my material, there is a good chance the prospect will quickly give you a call to retain your service. However, a follow-up call is sometimes needed to help prod the prospect in the right direction.

Phone calls to prospective clients are one of the easiest aspects of this profession. Remember, you are offering to help this business owner with a very real and URGENT problem. In addition, you are offering to assist on a "no results, no charge" basis! What could be easier?

The letter will have already opened the door for you, making the follow-up call a warm call rather than a cold call. Often, I am told they just had not gotten around to calling my office when they take my call.

By following the recommendations and scripts provided in my material, you should have no problem contacting prospects and quickly turning them into fee-paying clients.

Scott F. Soape

Start Up Costs

2009-06-08T08:10:00.004-05:00

One of the great things about working in the "Service" industry is that it's typically very affordable to get started. The commercial debt resolution profession is no exception.

Once you have invested in my comprehensive Business Plan System, the other costs to get up and running are nominal. Assuming you already have access to a computer, you will also have some sort of word processing software to create your own letterhead and envelopes which can be printed with your business name and return address. Quality paper and matching envelopes can be obtained in small quantities from your local office supply store for a professional look. A private post office box may be rented inexpensively on a short term basis to be used for all your business correspondence.

Business Cards are one of the only items where I suggest you maximize your initial investment. They should convey a clear and professional image so high quality card stock and print is important. These and your letters may be the only face your clients and prospective clients ever see of you and your business so they need to be sharp.

As your practice grows and revenues allow, you may want to add a dedicated phone line for faxes and / or your business calls. Also, you will find some sort of brochure will be helpful in conveying your message. I use tri-fold brochures that only cost about 40 cents each. A print run of 50 is around $20 and 100 are just $40. These allow me to summarize my business, show clients the benefit and include all my contact information in a professional format. Every prospective client mailing includes a brochure.

Websites have become increasingly important for a credible and professional image. One can be created as revenues allow but you can start very cheaply by using special on-line services (see previous Blog entry on websites).

When you consider the TOTAL start up cost to enter this highly lucrative profession can be easily recouped with your VERY FIRST paying case, the "cost decision" should be easy.

Scott F. Soape

What About Competition?

2009-05-11T17:32:00.007-05:00

The commercial debt resolution profession is relatively new and typically under-represented in areas around the country. However, most large cities will probably have some competition in this business.

The good news is: there is plenty of business to go around! Lawsuits involving financial disputes between companies are filed daily all over the country and there is no way for one or even several debt resolution firms to handle them all. Additionally, these debtor companies typically have several other problems you will be able to settle. And, if you work on building a wide referral network using my many suggestions, you may never encounter another debt negotiator.

In my local area, I know of at least one other debt resolution specialist (but I am sure there are probably a couple others). He and I bump into each other occasionally at the courthouse and we are on friendly terms. We have even met for coffee to exchange ideas on the business. Fortunately, there is plenty of business for us both and I have only encountered one client in the past 11+ years that we both were working.

Don't get concerned about whether or not your area may have some competition. Given the volume of cases to work, you are bound to find plenty of prospective clients happy to pay for your assistance.

Scott F. Soape

Can Anyone Do This?

2009-05-08T10:49:00.002-05:00

I am often asked: "What kind of background, qualification or education is needed to be a successful commercial debt negotiator"?

The answer is: "No special background, qualification or education is needed."

My comprehensive Business Plan System will provide you with all the information needed to work this profession. I have written the material so that almost ANYONE can begin their own practice within a couple of days from the date they receive it.

The business itself is not difficult and my step-by-step instructions will guide you through everything required to be successful. There is no need to become some sort of financial guru or master negotiator. If you can read and write and you are comfortable with occasional phone conversations, you are qualified.

90% of this business is conducted by correspondence (fax, mail or email) and I provide samples of the basic form letters. About the only time you will speak with another person is during follow-up phone calls to prospective clients and gathering simple information from clients to ascertain what type of settlement is best for them. Again, I provide you with sample scripts for these calls. There is absolutely no need to meet with anyone face-to-face unless you choose.

Do not be put off by thinking you are not qualified to work in this highly lucrative profession. I will provide you with everything you need to get up and running... and potentially making a LOT of money.

Scott F. Soape

"Bread & Butter Cases"

2009-04-16T16:04:00.003-05:00

Once you have been in this profession for a time, you will find there are certain creditors that file numerous cases in your area on a regular basis. In my area there are about 4 or 5 of these repeat offenders.

I always know from the start exactly what to expect from the attorneys that represent these creditors. And, since they have dealt with me on many cases over the years, we are on a friendly (although professional) first name basis.

Two of these 4 or 5 repeat offenders are very stringent with their settlement guidelines and rarely make any exceptions on terms. I refer to these cases as my "Bread & Butter Cases" because I only charge a minimum flat fee of $350 to $450 for each settlement depending on the size of the debt (these debts usually run from $5,000 to $10,000). They require very little time or effort and I can easily handle several each week without detracting from my other case load.

Be assured, I ALWAYS save my client much more than my fee. But knowing the creditor will not give up much of a discount and knowing I will not need to spend much time in negotiations, the fee is fair.

Once you have spent some time working various cases, you will likely encounter the same situation. I encourage you not to set your fee too high when you work cases that do not allow for substantial discounts for your client. You will easily make up for any perceived fee shortages by the shear volume of cases!

Scott F. Soape

My BBB Rating: "A"

2009-04-09T16:20:00.002-05:00

Although my company is not an active member of the local Better Business Bureau, they still maintain records on any complaints received(as they do with many other non-member businesses).

I am proud to say my BBB rating is "A"... the HIGHEST RATING they issue.

After nearly 12 years in business, I have not received a single complaint with the BBB. Of course, this does not mean I am perfect. What it should indicate is that I make every effort to resolve complaints to the complete satisfaction of each and every client and student.

Based on the design of my core commercial debt resolution business, I do not charge a fee unless I obtain settlement terms on a debt to my client's full satisfaction. This means they must approve any settlement before they are obligated to pay for my service. Over the years and with hundreds of cases, there have only been a handful of settlements I could not close. No settlement, no charge to the client, no reason to complain.

Regarding my Business Plan System, I always make every effort to address whatever special problems or concerns a student may have with the program. If a student decides the program is not for them for any reason and they return the material within the 45 day refund period, I always process refunds promptly... no questions asked.

I hope you will take my BBB record as an indication of how I have conducted my business from 1997 to present. Personally, I am very proud of this "zero complaint" record and I intend to do my best to keep it intact.

Scott F. Soape

Please feel free to check for yourself at: www.bbb.org.

Support

2009-04-06T16:11:00.004-05:00

I am personally available to assist anyone purchasing my Business Plan System. You will receive support and guidance through your first two cases or for 60 days (whichever takes longer) at no charge whatsoever. Most folks are able to work cases entirely on their own after the first couple. However, if further assistance is needed, I am happy provide some ongoing input. After all, your success is of the utmost importance to me!

My office is available for questions and assistance by phone, email, fax or letter as needed while you are getting started. I encourage all my students to contact me directly if they encounter any problems or concerns. With nearly 12 years in the business, I have come across nearly every type of case!

Additionally, this blog should be used as another ongoing resource. Case examples, negotiation techniques and marketing tips are provided here regularly. Please check every week or two for new posts that may enhance your business.

I am also happy to hear from any students when you encounter special case situations or when you close an exceptional case. Your feedback is always welcome and will be used to improve my information whenever possible.

Be sure to let me know if I may help you succeed in this exiting and lucrative profession.

Scott F. Soape

Keeping Records

2009-03-24T11:48:00.002-05:00

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

Are Face-To-Face Meetings Required?

2009-03-13T10:04:00.002-05:00

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

Why Creditors Accept Less

2009-03-07T08:22:00.002-06:00

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

Bartering Fees - An Alternative

2009-02-24T21:25:00.003-06:00

99% of the time your fees will be paid in CASH. That is how most clients operate and, frankly, how most debt negotiators prefer to be paid.

Occasionally, though, you will encounter a client strapped for cash but who may possess a skill or merchandise you can use. If you can be flexible on how you get paid, BARTERING your fee in trade for something else of equal value can sometimes benefit both YOU and YOUR CLIENT.

One of my favorite barter situations occurred several years ago when I negotiated a substantial discount on a debt with a local nursery. My fee was set at a percentage of the savings and came to over $2,000. Unfortunately, my client was unable to pay both my fee and the settlement. Since I did not want him to lose the excellent settlement nor did I want to miss the fee, I suggested we barter for a product instead. I had just completed building my new home at the time and needed sod for my front lawn. So, in trade for my fee, my client provided me with a truck load of 20 palettes of sod along with the starter fertilizer.

Of course, I could have purchased the sod with the same money I should have received for my fee, but this made it easier for my client to make payment.

Use your imagination and keep an open mind as you deal with your clients. It need not even involve a large fee... I once worked for a $300 box of cigars from a local cigar shop in lieu of a cash fee.

Bartering your fee can add a new dimension to your practice and benefit both parties.

Scott F. Soape

Networking Groups

2009-02-15T12:39:00.002-06:00

Networking groups exist for the sole purpose of promoting business for their members. To find out about networking groups in your area, start by contacting your local Chamber of Commerce and asking who they know that you can call. Chances are there will be several groups in your area to choose from and you may join as many as you want if they are accepting new members.

Most groups try to limit the type of businesses represented in order to avoid competition for referrals. A group may have members consisting of one CPA, one Printing Company, one Insurance Agent, one Restaurant, one Real Estate Agent, one Banker, one Dry Cleaner, one Mortgage Broker, etc. Typically, they like a broad spectrum of business types.

You can almost be sure they won't have any Commercial Debt Specialists and many groups will be more than happy to include you as a member. Join as many as you like. They usually meet once a month but some have weekly meetings either for breakfast or lunch or even early in the evening depending on every one's schedules. Find one (or more) with meeting times that fit your schedule.

These groups are a great way to spread the word about your unique service and you will find most group members have never even heard about your profession.

Include networking groups in your marketing efforts and you will find them to be a very effective and inexpensive way to get referrals.

Scott F. Soape

Negotiation Techniques

2009-02-02T08:56:00.004-06:00

Some people thinking about getting into this profession are concerned they will need to be "hard nosed" aggressive negotiators in order to be successful. They are worried they don't have the proper personality or disposition to negotiate head-to-head with the creditor agents and "win" a settlement for their clients.

The good news is you can work this profession in whatever manner best fits your own personal style and attitude. If you want to be a hard-nosed aggressive negotiator, then go for it! If, on the other hand, you prefer to take a more subtle approach, that can work just as well.

My Business Plan System material provides all the information needed to negotiate settlements and you may use it to fit your own personal style and comfort level when dealing with clients and creditor agents.

As I have said before, the negotiation process is not difficult. Often, all that is required is making a properly worded offer or two before a settlement is finalized (see my Blog entry of August 20, 2008). And most of the time there is no need for face-to-face contact or even a telephone conversation with the creditor agents! My sample Settlement Offer Letters usually do all the work.

Anyone, regardless of the personality type, can operate a successful commercial debt resolution practice using my system.

Scott F. Soape

Keep Fanning the Referral Flames

2009-01-24T14:30:00.003-06:00

My Business Plan System material provides you with a number of referral sources to contact about your debt negotiation service. These sources will encounter qualified candidates for your service on an ongoing basis and are usually very happy to steer them your way.

Incorporate a system of contacting these important folks on a regular basis into your business so that you are always at the forefront of their minds when potential clients show up.

You may want to start by sending a letter to introduce yourself and briefly explain your service to them. Including a bi-fold or tri-fold brochure will help create an identity for your business and give them something to maintain on hand along with your business card. Ideally, a follow-up phone call should be made to ensure they received your information, provide additional information and ask about any current referrals they may know of.

Once you have made the initial contact, be sure to "touch" your referral sources occasionally with a brief letter, email, newsletter, phone call or personal visit on at least a quarterly basis.

I make a point of dropping in for personal visits whenever possible. This allows my referral sources to connect a face with my name and also lets me provide extra information about my unique professional service. Often, I will even make a "cold call" visit to new referral sources when my time allows. Most folks are happy to take a minute or two for an introduction and almost all are interested to hear about what I do.

Don't make the common mistake of thinking one brief contact with a referral source is all you need. By Fanning the Flames of your referral sources, you will keep a steady stream of qualified leads coming your way... and the fees will follow.

Scott F. Soape

The BEST Profession for this Recession!

2009-01-16T11:03:00.003-06:00

It should come as no surprise that the Commercial Debt Resolution profession is experiencing a HUGE SURGE in business given current economic conditions. Not only is this a recession proof profession but our business actually improves when times are bad since companies are experiencing a variety of debt problems stemming from the overall down economy.

Fortunately, we professional debt specialists are here to assist companies with their past due and disputed debts by negotiating discounted settlements with the creditors. Everyone wins when a debt can be settled out of court... the debtor gets a discount and/ or a manageable payment arrangement, the creditor receives money they may not have ever seen otherwise and the professional debt negotiator receives a substantial fee for his or her successful efforts.

Industry forecasts indicate our profession will prosper for the foreseeable future. If you are on the fence about getting into this business, I encourage you to take the plunge NOW. Commercial Debt Resolution can provide you with new or additional revenues and can be worked on either a full-time or part-time basis. Please visit my website for details and feel free to contact my office if you have any specific questions I may address.

Scott F. Soape

Another Reason to Avoid Consumer Debts

2009-01-11T12:43:00.004-06:00

As stated in my blog entry of May 29, 2008, there are several reasons I suggest debt negotiators avoid consumer (personal) debts. An additional reason is the pending legislation to regulate that area of debt settlement that will likely soon be adopted in every State of the Nation.

The Uniform Debt-Management Services Act (UDMSA) provides comprehensive regulation of debt counseling and debt settlement services. It provides guidance and regulation to the consumer credit counseling and debt settlement industries and is a comprehensive statute that provides rules for (among other things) registration requirements, bond requirements, certification requirements, disclosure requirements and penalties for non-compliance.

My sources assure me this Act applies only to consumer or personal debt counseling and debt settlement and not to Commercial or Business debt services. Our profession remains basically unregulated and will for the foreseeable future. That is because we are basically acting as business consultants, dealing only with commercial entities on both sides of a debt settlement negotiation.

I strongly recommend you avoid working with consumer debts on any level for many reasons. This pending legislation is just one more reason to stick with Commercial Debts ONLY.

Scott F. Soape

For additional information please visit the official website for UDMSA at http://www.udmsa.org/ .

Who Handles the Settlement Money?

2009-01-05T12:16:00.004-06:00

I am often asked by folks new to this profession if they will be responsible for handling the settlement payments on behalf of their clients. (Students of my Business Plan System already know the answer to this question.)

Although some programs require debt negotiators to place settlement funds into escrow accounts and direct payments themselves, my system shows you how to avoid this headache.

As far as I am concerned, the primary function of a Commercial Debt Resolution Specialists is to NEGOTIATE SETTLEMENTS. If you happen to have a background or expertise in other areas such as accounting, law, insurance, investments, etc. you may want to offer to assist your client with these matters as well. Otherwise, I suggest you limit your service only to settlement negotiations.

My system shows you how to negotiate the best possible settlement for your commercial client to include the lowest total amount and, if a payment plan is arranged, the longest time to pay, the lowest interest rate and the smallest monthly payments.

Once a settlement is agreed upon, your job is done and it is entirely up to your client to follow through with and adhere to the payment terms with the creditor or their agent. In other words, after a settlement is finalized, you are "out of the loop". This is specified in writing and a sample document is included in my Business Plan System material.

There is no reason to create extra work, responsibilities or record keeping for yourself by offering to handle settlement payments through an escrow account. Simply negotiate the best terms for each client and move on to the next fee-generating case.

Scott F. Soape

Happy New Year!

2008-12-31T15:31:00.002-06:00

With the new year upon us, you might want to consider making a resolution to improve your marketing campaign for 2009.

Review your business card format and ensure it projects a professional image and clearly states your business information and what you do. Be sure to use the back of your cards for added impact with little extra cost. Your cards may be the first and only thing prospective clients see about your service.

Create a bi-fold or tri-fold brochure. A local print shop can assist with a format or you can experiment with your own basic word-processing software. If you can include a photo of yourself, that will help to create a more personal relationship and give clients an idea of exactly who they are dealing with. Take a tip from all the real estate agents that ALWAYS include their own pictures in their marketing material. They've been doing this for a long time and they know it works.

Research the possibility of running inexpensive ads in local newspapers, or on local radio and TV stations. The ad departments with these media will assist you at little or often NO COST in creating a professional message.

Incorporating an effective marketing campaign into your other regular prospecting efforts with enhance your overall business. Use this new year to get off to a great start in 2009.

I wish you all a very safe, happy and PROSPEROUS New Year!

Scott F. Soape

FREE Website Hosting

2008-12-16T12:25:00.002-06:00

There are several FREE website hosting services where you can quickly & easily build a decent website for your commercial debt resolution practice. Here are just a few...

www.snappages.com

www.weebly.com

www.wix.com

www.squarespace.com

www.synthasite.com

These sites offer a great way to present a professional looking web presence at no cost and very little effort. In addition, most of these allow you to upgrade for a small price and add extra bells & whistles.

Internet exposure for any legitimate business has become a MUST. Be sure your business has a website so that prospects and clients can find out more about what you have to offer.

Scott F. Soape

Enlist Independent Associates & GROW Your Practice!

2008-12-04T18:35:00.005-06:00

Although a steady stream of local leads and referrals can be counted on in this profession, there may come a time when you will want to expand your reach to other geographic areas. I experienced this desire early in my career as a commercial debt negotiator.

After a few failed attempts to find a reliable way for locating additional leads, I finally developed a truly innovative program for getting OTHER PEOPLE to pay me to send me leads. Now, I market this Associate Program as an "Income Opportunity" and receive an ongoing stream of qualified leads from around the country on a regular basis without spending any personal time or money (I pay my Associates only if I receive a fee).

By enlisting the services of independent Associates, YOU can also tap into all the commercial financial disputes arising anywhere you desire. I'll show you how.

My Associate Program System is available to anyone in the commercial debt resolution profession and it will allow you to exponentially GROW your fee revenues.

Whenever you are ready to take your practice to the next level, contact my office for additional information on this extraordinary fee-enhancing program. You may end up with MORE BUSINESS THAN YOU CAN HANDLE!

Scott F. Soape

Web Networking

2008-12-04T10:17:00.002-06:00

There are a number of FREE networking websites for businesses available. I have been a member of StartUpBiz for several months and receive quality referrals on a regular basis. Feel free to add your own business information to this site and / or do your own search for others. The wider you can spread your name, the more business you will get!

Scott F. Soape

An Average Case

2008-12-02T08:20:00.003-06:00

During your career as a professional debt negotiator, you will encounter small cases generating minimum fees of $300 or $400 as well as large cases generating fees of several thousand dollars. You will also quickly find the actual work and time involved with each negotiation is practically the same. Typically, it takes no more skill, time or effort to close a large case than it does to close a small one.

Here's an example of an average case I recently closed...

On October 31st, I located a courthouse lead where a local Yellow Pages book was suing a business for $14,800 in past due billings for an ad (these are very common). I sent the business owner my powerful "Prospect Letter" then followed with a phone call a few days later.

On November 5th, the business owner hired me to negotiate a settlement and I quickly faxed a low-ball offer to the creditor's attorney.

On November 11th, I received a fax with a counter offer from the attorney. Interestingly, the attorney's letter indicated his client "does not appear to be very amenable with negotiations from this point, but it may not hurt to counter offer". That same day, I sent him another offer for a higher amount but still considerably below his offer.

You will often find the biggest hold up in closing a case is on the creditor's end. Since an answer date for the lawsuit was coming soon, I requested and was granted an extension of several weeks from the attorney while we were in negotiations.

On November 24th, I received a fax with a final settlement offer from the attorney. The terms allowed for a substantial discount and an 18 month payment period without interest. I quickly relayed this to my client. Since this was Thanksgiving week, he asked for some time to think about it before deciding. In the meantime, I put everything in writing along with my "Closing Letter" and sent him the details.

On December 1st, my client accepted the terms and I notified the creditor's attorney who then prepared the paper work.

Although this case took just under 4 weeks to close, it really only involved a couple of short phone calls and a couple of quick faxes & form letters. My fee was $750 (a flat fee based on my initial interview with the client and my expectation for the probable outcome). The final settlement was for $11,200 to be paid in 17 monthly payments of $625 each and a final payment of $575. My client saved over $3,600 on the principal amount of the debt plus over $5,000 in potential plaintiff's attorney fees, court costs and interest on the debt.

I have closed much larger cases in less time and I have closed smaller cases that took even more time but my actual time spent in negotiations is usually about the same. Keeping your "pipe line" full of a variety of cases will ensure a steady revenue stream with cases closing on a fairly regular basis.

Scott F. Soape

First Contact with Prospects

2008-11-20T08:37:00.003-06:00

Your first contact with a prospective client may be your only contact so it is important to make a convincing case for them to use your service.

Your message needs to be professional, concise and compelling. This is true whether the communication is by phone, letter or email. Of course, those who have purchased my Business Plan System know I am a proponent of sending a letter first then following with a phone call most of the time. My sample "prospect letter" included with my material has proven to be a great tool in getting a prospective client's attention (and often prompting them to call you).

You only have a short amount of time to convince a prospect your service is valuable to them. My sample script provides a good guide line for the phone conversation but I encourage you to alter the wording to fit your own personal style. To close the deal, I have sometimes found it helpful to tell a prospect they can always hire an attorney if I am unable to negotiate an acceptable settlement first. Since there is no cost unless I am successful, they have nothing to lose.

Always take your first contact seriously and ensure the communication reflects favorably upon you and your service. It may be your only opportunity to turn a prospect into a fee paying client.

Scott F. Soape

How to Make $100,000 + a Year

2008-11-08T09:20:00.001-06:00

You've heard me say a six figure income is possible in the commercial debt resolution profession. Earning fees of several thousands of dollars per case is certainly one way to get there... but there are also other ways.

Let's look at 3 different examples:

EXAMPLE 1. If you can close 5 cases per week generating a fee of just $400 each, you will earn $2,000 per week. With 52 weeks in a year that gets you $104,000 per year. Since most cases take no more than a couple of hours TOTAL time to negotiate & close once you land a client, that's about 10 hours per week. (Keep in mind a $400 fee is about the minimum you should earn on a case, so lets look at another example.)

EXAMPLE 2. If you can close only 3 cases per week generating a fee of $700 each, you will earn $2,100 per week. That comes to over $109,000 per year.

EXAMPLE 3. Now figure you earn the average fee of about $1,200 per case and close only 2 cases per week. At $2,400 per week you will make nearly $125,000 a year!

You can assume you will have a wide mixture of cases earning a wide range of fees. Some may only earn you $350 while others generate fees of $3,000, $5,000 or $10,000+. That's the nature of this business. Sure, some weeks you may not close ANY cases, but other weeks you may close numerous cases each day. Other weeks you may only close one case but that case might earn you a fee of $2,000 or more.

The business is out there and making $100,000 + per year is possible if you incorporate ALL of my recommendations for getting leads & closing cases. Making more money just means contacting more prospective clients and closing more (or bigger ) cases each day or week. Of course, nobody says you have to make a six figure income. If all you need or want is an extra $400, $800 or $1,000 per week, then it will take fewer cases to get there. Follow my program and the potential is absolutely there to earn whatever level of income you desire.

Scott F. Soape

Repeat Clients - The "Icing on the Cake"

2008-11-01T16:02:00.000-05:00

There are always new clients in need of our service. Financial disputes are constantly occurring and lawsuits between businesses are an ongoing certainty all over the country. So, our service is always in demand.

However, as I teach in my Business Plan System, repeat business from current clients is "the icing on the cake".

Once you have identified a potential client with a problem debt, you can bet they have several other creditors hounding them for payment. ALWAYS ASK!

This is the easiest source of new business you will encounter. After your client sees what a great service you have to offer with their first problem debt, they will gladly allow you to negotiate settlements with their other creditors. After all, they have nothing to lose... and potentially, thousands of dollars to gain.

Ask about their other problem debts when they hire you AND ask about their other problem debts once you negotiate a settlement on the first debt. A satisfied client is your BEST source for new business!

Of course, my Business Plan System explains all you need to know. Please visit my website at http://www.debtresolutionbiz.com/ for details on this profession and feel free to contact my office with specific questions.

Scott F. Soape

How to be REALLY Successful

2008-10-23T06:45:00.000-05:00

I am often asked: "How much money can I expect to make in this profession?"

Well, the answer is: "It depends."

I can teach you how to be a professional debt negotiator and where to find the business, but it is entirely up to each individual to decide what to do with these skills and this knowledge. A six figure income is certainly possible; it just depends on the amount of effort you are willing to put forth.

I think the best and easiest to understand comparison is with individual real estate agents. When you think of all the real estate agents you know, I'm sure some are making a great deal of money while others may just be doing OK. And some may only work part-time. Simply being in the business is not enough to ensure financial success.

Although all licensed real estate agents start with the same knowledge of their profession after completing their training, it is their individual effort that differentiates their financial success. Knowing how to sell real estate does not mean an individual agent will necessarily make a lot of money. Most highly successful ones have to hustle for business, especially when they are just getting started and until they build a reputation.

The same can be said for professional debt negotiators. The cases are ALWAYS out there but some effort has to be put forth in order to really make a LOT of money. By following my recommendations for locating court case leads as well as for building ongoing referral relationships with as many other sources as possible and sticking with it, you can be assured a substantial stream of fee revenues.

Schedule a portion of each day or week for prospecting new clients, building new referral relationships and for reinforcing those already in place. Tell everyone you know and meet what you do. Network with other business people. Create a professional looking website. Advertise when it is in your budget. Send direct mail information to bankers, accountants, CPAs, business brokers, etc. In short, create an identity as the "go to" person for any business experiencing debt problems in your area. (As your business grows and as your budget allows, you can add some of these marketing strategies. There is no need to spend a lot of money up-front.)

Sure, you can work this profession on a part-time basis and some debt negotiators are perfectly happy earning just a little extra income. There is absolutely nothing wrong with that. However, if you want to be at the TOP TIER of this profession, take the extra effort to build relationships and a reputation early in your career... it will quickly translate into BIG fees and financial success.

Scott F. Soape

Case Closed in ONE Week!

2008-10-16T13:49:00.000-05:00

Although this case cannot be considered the "norm", it is another great example of how quickly these cases can play out...

On Thursday, October 9th, I contacted a court case lead and offered my service. The business owner asked for details on the case since he had not yet been served the citation for the lawsuit so I offered to call the plaintiff's attorney and find out for him. The attorney was out until the next week but promised to call me with the details upon his return. I relayed this information to the business owner.

On Tuesday, October 14th, the attorney called me with the details and I called the business owner who immediately hired me. I faxed a contract to him and got a signed copy back a few minutes later.

By the way, when I called the attorney I also asked him how much of a discount his client might accept to settle the lawsuit quickly. He indicated a 30% discount would probably be acceptable but it would need to be a lump-sum payment.

That same afternoon, I faxed an offer to settle at a 46% discount (you never know unless you try).

On Wednesday, October 15th, the attorney countered at a 33% discount so I knew that was as good as it would get. I conveyed this to my client and he accepted.

Just ONE WEEK after first contacting a lead I had earned a $930 fee! And as usual, all parties benefited: my client saved several thousand dollars & the creditor received money without additional collection expenses.

I think its important to note this case was the result of a referral from an independent Associate who will be sharing a percentage of the earned fee. Please contact me for information on how you can work with your own independent Associates and receive an ongoing stream of qualified leads from different jurisdictions.

Scott F. Soape

The Tricky Part

2008-10-15T18:35:00.000-05:00

You may wonder after reviewing my website "how can this profession pay so well and why aren't more people doing it?".

The answer is: this profession pays so well because we are providing a very needed and valuable service AND precisely because so few people are doing it.

The actual "work" is not that difficult and my Business Plan System explains everything in detail on what to do. But that is not to say it is effortless. As I have said before, the tricky part is not necessarily negotiating the settlements... the really tricky part is convincing business owners our service is better than the alternative.

What is the alternative?

1. If a debt has been incurred, the alternative is a lawsuit.

2. If a lawsuit has been filed, the alternative is a money judgment.

3. If a judgment has been awarded, the alternative is legal collection of the entire debt plus attorney's fees, back interest on the debt, court costs and collection expenses incurred.

As strange as it may seem, many business owners are in denial and just ignore the issue even when confronted with these alternatives (no matter how far along they are in the process). This means we sometimes have to offer our service to lots of people before we land a client. That's the tricky part and that's why there is not much competition in this profession AND why we get paid so well. The more people you can contact, the better your chances of landing a fee paying client!

By working several jurisdictions for court cases and broadening your referral base, you will ensure a steady stream of leads and increase your odds for fee paying clients. Keep at it and you will see the BIG PAYOFF in substantial, ongoing fees... and the very real potential of a six figure income.

Scott F. Soape

Answer Date Deadlines

2008-10-10T08:03:00.000-05:00

As indicated in my Business Plan System, it is always important to stay aware of the answer date deadlines for pending lawsuits. Most jurisdictions allow a defendant between 2 to 4 weeks to file an answer (response) to the court after they have been served the citation (notice of the lawsuit). The citation will indicate the deadline. If they fail to file an answer within the prescribed time, they risk a default judgment being issued against them for the full amount claimed plus additional expenses.

Always ask your new client if they have been served and, if they have, when they were served. Make note of the answer date deadline so you can request an EXTENSION if your negotiations are not completed by that date.

Most creditor attorneys are willing to grant an extension to the answer date if you ask. Getting it in writing is always a good idea but some attorneys may just grant an informal verbal extension. Either way is fine.

If you ever encounter a case where the answer date cannot be extended, be sure to notify your client and recommend they hire an attorney to file an answer on their behalf in time. You will lose a client but it is much better than the alternative of a default judgment.

Scott F. Soape

Another Actual Case

2008-09-30T17:34:00.000-05:00

On September 12th, I contacted a business owner who's company had been recently sued. After explaining my offer to negotiate an out-of-court discounted settlement on a no results / no charge basis, he agreed to let me try. I quickly faxed him a contract.

This case involved a worker compensation insurance company suing for past premiums that were due. Since I deal with the attorney for this company on a regular basis, I knew going in what to expect in the way of a settlement. However, I always start my negotiations with them low just in case they're not paying attention. You never know!

The principal amount of the debt was almost $19,000 (plus court costs, attorney's fees and back interest on the debt) so I initially offered $8,500 as a lump-sum payment. I also indicated any higher amount would require at least a two year payment term. They rejected this offer and countered at $15,000 payable with a down payment of $1,000 followed by 24 monthly payments of about $633 each. There would be an 8% interest rate applied to the outstanding balance and the settlement would be secured by an Agreed Judgment (please see previous blog entry of July 4th). My client would also have to pay the court costs of $272 but no attorney's fees (these could have amounted to over $6,300 or 1/3 the principal). This counter offer was comparable to other settlements I had worked with this same creditor and I knew it was their best deal... approximately a 20% discount with some standard provisions.

I presented these terms to my client on September 25th and they accepted on the 29th. As usual, the plaintiff's (creditor's) attorney is preparing all the documents and sending them to me. I will forward them to my client upon receipt of my fee. For this case my fee was set at 30% of the savings and came to over $1,100. The entire process only took a little over 2 weeks and involved a couple of phone calls and one settlement offer letter but ALL parties benefited.

As I have previously stated, the negotiation process need not be complicated or difficult. A simple offer to get the ball rolling is all it takes once you land a client.

Scott F. Soape

Referrals From Bankers

2008-09-24T08:55:00.000-05:00

As I have mentioned before (and in my Business Plan System), building a good referral network for new leads is essential to building a strong commercial debt resolution practice. A regular stream of referrals from several different sources can enhance and perhaps even exceed your court case leads.

When you think of the type of business or professional that might come into contact with companies experiencing financial difficulties, bankers should quickly come to mind. Loan officers deal directly with local business owners and are often the first to know when a company is having a problem. It is part of the banker's job to help their commercial loan customer figure out ways to resolve their cash flow problems... primarily so they won't default on their loan(s) with the bank.

Make a few phone calls each week and find out the names of branch managers and / or presidents of banks in and around your area. Send these bankers a short letter offering your service to their commercial customers that might find themselves in financial difficulty. It is important that you let the bankers know you will not be trying to negotiate discounts on the bank loans. Rather, you will assist their customer with their other obligations making more funds available for loan payments.

As with most other marketing efforts, a follow-up phone call will greatly increase your odds of developing a good relationship.

There are many different sources for referrals you can tap into that can help you build a thriving practice. Make a point of contacting these folks on a regular basis and you will soon see a difference in your revenues.

Scott F. Soape

Helpful Websites

2008-09-01T10:39:00.000-05:00

There are dozens of great websites that can assist you with your commercial debt resolution practice... locating people, calculating loan payments, identifying company owners, finding phone numbers, identifying referral sources, etc.

Here are just a few FREE sites I use on a regular basis with my practice:

www.ZabaSearch.com lets you plug in a name and state of residence to get all possible listings of past addresses and phone numbers.

www.YellowPages.com will give you phone numbers based on input of an individual or company name & city or an address. It will also give you an address if you input a phone number.

www.Calculator.com will help with calculating payments for payment plan settlements.

www.USPS.com can provide a 4 digit zip code for a specific address.

Of course a simple Google or Yahoo search can provide websites for companies and information about who the owners are. All these free sites make our job easier and ensure we are presenting our service to the right people and providing the right information. Please feel free to leave your comments here for other sites you find helpful in your own practice.

Scott F. Soape

Negotiating Settlements

2008-08-20T16:35:00.000-05:00

I think it often comes as a surprise to many people new to this profession that negotiating settlements can be the easiest part of the job. Remember, BOTH parties (creditor & debtor) are motivated to settle their financial disputes.

Creditors know the assurance of some money now is always better than the hope of more money later. Even if a creditor receives a judgment in their favor after filing a lawsuit, they still have to try and collect the money. This can be a long and expensive process with no guarantee they will ever see any money for their efforts. Debtor businesses even have the option to simply close up shop and walk away if there are limited or no assets. They can also hide assets or channel them into areas that cannot be touched by creditors.

Debtors, of course, are almost always happy to pay less than what is actually due or at least set up a manageable payment plan with the creditors. Also, since their income is reliant on staying in business, they prefer not to close up shop and walk away.

There is really no trick or special skill to the negotiation process. Often, simply making an offer to the creditor and waiting for a counter or acceptance is all that is entailed. My turn-key Business Plan System provides all the information needed to successfully begin negotiating settlements immediately and includes suggestions and guidelines for all types of situations.

Don't be put off by thinking you have to be some kind of master negotiator to succeed in this profession. With my guidance, anyone can prosper as a professional commercial debt negotiator.

Scott F. Soape

Ethics - Client Relations

2008-08-08T11:54:00.001-05:00

As expressed in my Business Plan System, you must always remember your service has been retained to reach the very best possible settlement terms for your client.

It may be tempting to think the quicker you reach any settlement, the quicker you get paid, but that is a sure way to also quickly work yourself out of this business. Sadly, there are (and probably always will be) a small number of people in this profession who place their own interests ahead of their clients' interests. This unfortunate situation reflects poorly on the rest of us doing our best to provide quality service to our clients and will eventually lead to stricter regulation of the industry.

Here are a few recommendations you may want to incorporate into your practice:

1. Maintain client confidentiality.
2. Initiate negotiations and complete settlements in a timely manner.
3. Clearly state fee arrangements in a written and signed agreement.
4. Accept cases only when legitimate benefits can be provided.
5. Provide written documentation to clients on all settlements.
6. Refer clients to competent legal counsel as needed.
7. Never offer legal advice.
8. Maintain truth in all communications.
9. Avoid conflicts of interest in all cases.
10. Maintain a professional attitude in all communications.

As with all endeavors, if you know you have done your best, you can always be PROUD of your results... and your business should flourish!

Scott F. Soape

Referrals From Creditors

2008-07-28T13:14:00.000-05:00

I have had a few inquiries lately about getting leads outside the court cases. Although I do suggest most people new to this profession begin with recent lawsuits filed in their area (this is the quickest way to earn fees), building a good network for ongoing referrals is the best way to really GROW your business over time.

One referral source worth researching is through creditor businesses. You can identify possible companies by scanning lawsuits and looking for the same business listed as plaintiff on more than one case. These will probably be companies that have an ongoing problem collecting on past due accounts.

Once you have identified a few of these companies, send them a brief letter or call and offer your service to "collect" on their past due accounts at no charge. After you have their attention you can explain how you will be compensated by the debtor business but the creditor will benefit by receiving payments. They may only be willing to accept payment in full on these debts but you might be able to get them to take payment plans or a small discount or both. The more wiggle room to can get them to agree to, the easier job you will have when you approach the debtor companies.

Over the years I have developed relationships with several such creditor companies and they will occasionally provide me with a list of past due accounts to contact with all the information I need. When I talk to the debtor business owner, I let them know I can probably settle this dispute for them at a discount or at least set them up on a manageable monthly payment plan. Since I know exactly what to expect from the creditor and there is very little actual negotiation involved, I typically keep my fee at my minimum rate of $350.

If you can establish relationships with just a few creditor businesses like this, you may be assured several easy cases each month and an additional stream of ongoing fees. Set aside a few hours each week solely for the purpose of building your referral network from several different sources (see my previous Blog posts on Business Brokers & Factoring Companies) and you will soon see a substantial increase in your revenues.

Scott F. Soape

A $3,000 Fee

2008-07-17T12:54:00.000-05:00

The copy of the check shown above dated July 15, 2008 represents the balance of a $3,000 fee I recently earned (less $100 for a retainer I had already received). Here's how the case played out...

During a regular courthouse visit, I came across a case where an insurance company had brought a lawsuit against a trucking company for past premiums due on a policy. The lawsuit was for $80,059 plus attorney fees, back interest on the debt and court costs of $317 for filing the suit.

I sent a letter to the debtor business (defendant) at the address shown on the lawsuit and followed with a phone call a few days later. Once the owner of the company heard I was offering to settle out-of-court at a discount on a no results / no charge basis, he agreed to let me try. I got his side of the story & immediately faxed over an agreement for him to sign.

Although he had some dispute with the amount the insurance company claimed was due, this was basically a result of being short on funds to pay the debt in full in one lump sum. The owner gave me some general guidelines on what he could afford. HINT: clients will often give you a much lower amount than they can really afford thinking that will save them some money.

I quickly sent the attorney for the insurance company a low-ball offer of $29,200 (a hefty 63% discount), payable in 23 monthly installments of $400 with a balloon payment in the 24th month of $10,000. She rejected this offer but after a couple of counters she indicated she would accept $56,042 payable in 24 monthly installments of $2,483.82 bearing an interest rate of 6%. The settlement would be secured by an Agreed Judgment (see previous blog post). I saved my client over $21,000 even after he paid my fee! Although my fee was based on savings on the principal amount of the debt, I also saved him attorney fees which could have amounted to 1/3 of the debt (another $26,600).

Now, for this case, I had initially set my fee at 25% of savings rather than my usual 30% for 2 reasons: first, I knew what to expect from this creditor from dealing with them over the years, second, I knew my fee would be well in excess of my cap of $3,000 even at 25%.

There were some delays involved since the creditor requested financial information from my client in order to justify the discount but everything was completed within about 6 weeks and only took a couple of hours of my time.

This is only one example and these cases are filed all over the country, every week. Of course, while I was working this case, other cases were being worked and fees were being received. Keeping your pipe line full of cases and constantly prospecting for clients through courthouse searches and referral networking will ensure you a steady stream of fees.

The business is always out there and, using my proven techniques, YOU CAN GET IT!

Scott F. Soape

Building Synergy Referral Relationships

2008-07-15T20:22:00.001-05:00

At the risk of giving away one of my trade secrets, I'm about to reveal one of the best reciprocal referral relationships of this profession. If you happen to be a competitor, please avert your eyes...

There exists a specialized area of alternative commercial finance known as FACTORING. Basically, the companies that work this business will issue "loans" against accounts receivable from a small business, collect on them and keep a small percentage of whatever they collect. The money they "loan" is not typically considered as debt since they are really buying the accounts receivable. As you might imagine, this helps the small business in many ways . These Factoring Companies provide an indispensable service for their small business clients:

1. They can help reduce bad debt loss.
2. Make cash quickly available for any use.
3. Provide a professional collection & credit service.
4. Give constant detailed reporting of progress.
5. They get paid from proceeds of their collections.

Most factoring companies are very flexible and will custom fit their service for each individual client depending on their needs. Some or even all of the cash your client receives for their accounts receivable from the factoring company can be used to make payment on the debts you settle (making your job much easier).

Now, here's the BONUS part for YOU, the factoring company will pay you a referral fee for any business you send their way that becomes a fee generating client. The standard rate is 10% of whatever fees they receive... for as long as they receive fees... and this can easily translate into thousands of dollars for you and continue for months or even years.

Most of your clients will be businesses experiencing cash flow problems and could qualify for factoring if they have enough and the right kind of accounts receivable. You will not only be doing a favor for your client by suggesting this alternative financing but you could earn yourself a substantial ongoing referral fee.

Also & importantly, if you build a relationship with several of these companies, they will send business to YOU! Face it, their clients are probably having cash flow problems or they would not have approached them in the first place. If you can offer to negotiate discounted settlements on their clients' problem debts, that leaves more money available for their other pressing needs.

Do a little Internet search for "factoring" or "accounts receivable financing" companies in your area and send them a letter about your business. As always, follow-up with a phone call and you will be on your way to building some of the best referral relationships for your business you can find. But keep this under your hat... I would hate for my competition to find out about this idea!

Scott F. Soape

Agreed Judgments to Secure a Settlement

2008-07-04T19:29:00.000-05:00

It is not uncommon for a creditor's attorney to request an "Agreed Judgment" when they settle on a pending lawsuit.

An Agreed Judgment is basically an agreement from the debtor business that they owe a specified amount to a creditor without going to court. Typically it will include the original amount claimed by the creditor, attorney fees, back interest on the debt and court costs for filing the original lawsuit.

When a creditor agrees to an out-of-court settlement after filing a lawsuit, this is their collateral for the settlement in case the debtor defaults on the settlement terms. It is used primarily when a payment plan is accepted by the creditor (rather than a lump-sum payment) and saves them from having to file a new lawsuit if the debtor business defaults on the payment terms with a settlement. Typically, the agreed judgment is dropped once all payments are received and they do not reflect on the client's credit report.

By signing an Agreed Judgment, a debtor business indicates they "agree" to the full amount due (plus extra expenses) if they do not comply with the terms of the settlement.

These are very common and should be expected under the above circumstances so let your clients know it is simply part of the deal once a settlement is negotiated.

I suggest you NEVER OFFER an agreed judgment during negotiations, rather wait to see if the creditor's attroney will require one. If one is required, ask if they will hold it and not FILE it for record unless & until there is a default on the payment terms. This is always negotiable.

Do not be surprised if you encounter these during your negotiations and ALWAYS feel free to contact me if you have any questions during your negotiation process. I am here to provide whatever guidance I am able for those that have invested in my commercial debt resolution Business Plan System.

Scott F. Soape

Business Broker Referrals

2008-06-23T13:21:00.000-05:00

I strongly encourage anyone in this profession to build referral relationships with as many Business Brokers in your area as possible.

Business Brokers list various businesses for sale and match them with interested buyers. They earn a commission based on the sale price of the business (usually 10%). They also assist in valuing a business and make recommendations to enhance that value before a sale. This sometimes entails cleaning up existing debts.

Due to the current economic conditions, there are many business owners trying to sell their businesses but finding it difficult given their problem debts. You will find most Business Brokers very receptive when you approach them and offer your service in negotiating discounted settlements before a sale. Your successful efforts not only benefit the business owner but also the broker by making the business more marketable and increasing their commission with a higher net sales price.

Most businesses in this situation will have several cases to work. In addition, your fees will be higher since there is no need to cap them. By tying the settlement payments AND your fee into the proceeds of the sale, everyone is assured payment from escrow at closing.

All parties benefit:

1. The owner gets more money.
2. The broker gets an easier sale and a higher commission.
3. The buyer gets a clean balance sheet.
4. The creditors get cash.
5. You get a substantial fee with assured payment.

Do a little on line research soon and locate business brokers in your area. Send them a short letter about your service and follow-up with a phone call a few days later. You will be surprised at how easy it is to build several steady referral relationships with these folks and have them send business to you.

Scott F. Soape

Realistic Fees

2008-06-11T13:54:00.000-05:00

I would like to address a question that often arises regarding the kind of realistic fees that can be expected in this profession.

As you research different commercial debt resolution / debt negotiation training courses, you may come across some programs that promise huge fees. I know of one in particular that cites a "case example" resulting in a fee to the debt negotiator of $17,500. (This same training material sells for about $5,000 and I suspect the huge fee is used to justify the huge cost.)

Although large fees are certainly possible, we need to always be cognizant of our client's ability to pay both our fee and the settlement. Setting your fee too high will only result in another problem debt for your client and create a collection nightmare for you. In most cases, I recommend capping your fee to avoid this problem. My program provides some general guidelines, but it is entirely up to each professional to set your own limits. An alternative is to set your fee at a flat rate to ensure your client can afford your service and avoid "sticker shock" at the end of negotiations. A thorough interview early on with your client will help you determine the best fee structure.

HOWEVER, there are a couple of situations where this is not necessary. Negotiating discounted settlements to debts hindering a real estate sale or a business sale can be worked without any limit to the fee. Since your fee will be paid from the proceeds of the sale and your successful efforts will always result in more money for your client, there is no need to set a cap. These situations can easily result in fees of tens of thousands of dollars for large or multiple debts.

As an example, I am currently negotiating settlements with 10 creditors on behalf of a business seller with debts totalling over $100,000. To date, I have negotiated a discount of over $60,000. When the business sells in early July, my fee will be in excess of $18,000 and my client will still see a net benefit of more than $40,000. I am assured payment because my fee will be paid out of escrow from the proceeds of the business sale.

Substantial fees can always be expected in this highly rewarding profession and a comfortable ongoing income is possible, but don't get carried away by setting your fees so high they can never be collected.

Scott F. Soape

Judgment Collectors

2008-06-01T11:50:00.000-05:00

I have recently begun an email marketing campaign offering my Business Plan System to judgment collectors as an additional source of revenues.

Since developing my training program, I have tried to occasionally target specific professions with people possessing complimentary skills for commercial debt resolution. Many of these professionals have found they can quickly add extra income to their existing practices by incorporating my proven techniques. CPAs, Bookkeepers, Insurance Agents, Financial Planners and other professionals have found this business offers a new way to generate cash flow and often create new clients for their regular business.

If you have received an email regarding my program, I hope you will take the time to seriously consider how commercial debt resolution might fit with your existing business and add a new source of revenues without detracting from or diluting your other efforts.

Scott F. Soape

Commercial vs. Personal Debt

2008-05-29T11:46:00.000-05:00

Those of you using my Business Plan System know I am a proponent of only working commercial debt cases rather than personal debt cases. There are a few reasons for this.

First, there are a number of consumer protection laws and requirements for debt negotiators representing individuals. These can be cumbersome and complicated requiring lengthy disclosures to all parties involved. Commercial (or business related) debts do not typically carry this requirement.

Second, emotions usually run higher for both creditor and debtor for personal debts making a discounted settlement much more difficult. If the creditor is an individual, they often won't rest until the debtor (be they a person or business) feels the "pain" of having to pay in full. Similarly, if the debtor is an individual, they may have too many personal feelings attached to making a payment of any kind. For the most part, business owners on both sides are more interested in getting back to running their businesses and would rather just put the matter to rest as quickly as possible.

Third, debtor individuals may have fewer resources available to make a settlement payment and pay the debt negotiator's fee.

Although anyone in this profession may work either type of debt case if they are properly equipped, I recommend sticking with only commercial debts to make the best use of time and resources. The cases are numerous, the dollar amounts are often larger and the fees are usually easier to collect.

Scott F. Soape

Ethics - Dealing with Colleagues

2008-05-22T16:39:00.000-05:00

A recent event I experienced has compelled me to address the issue of ethics as they relate to dealing with other commercial debt resolution professionals. I will address other specific ethics related topics in subsequent writings on an ongoing basis.

Last week, I received a call from an individual asking about my Business Plan System for the commercial debt resolution business. After a while, he indicated he was not only interested in the program but was also a business owner with some debt problems. Through the course of our phone conversation I attempted to address his questions as best I could and explained the business and how I operate as plainly as possible. He sounded genuinely interested and asked if I could email a sample of my contract so he might consider retaining my service to resolve his problem debts (and continue to consider my training program).

After I sent him the requested sample contract, I began to suspect something didn't quite feel right about the conversation. A quick Internet search verified my suspicions. This person turned out to be the husband of a fellow debt negotiator in California.

It seems they had come across my firm on-line and were simply fishing around for information about my business. Apparently, the husband thought he could pull off his telephone impression of James Bond and garner some proprietary information about how I conduct my highly successful practice in order to help out his wife's business. Unfortunately, his clumsy attempt at corporate espionage failed and he was "busted" before I released any special information.

Sadly, had he or she simply called and inquired honestly about my practice, I would have been more than happy to share my information.

Unfortunately, this profession is populated with a few unprofessional and dishonest individuals, so it is important for the rest of us to conduct our business at the highest ethical standards with clients, creditor's agents and EACH OTHER. Sharing information with colleagues should not pose a threat since there is already more business available than we can all handle anyway. In the 10 + years I have been in this profession, I have never crossed paths with this other company and I doubt I ever will in the future (certainly not if I can avoid it).

I hope everyone involved in this business will feel free to share ideas, techniques and success stories with our colleagues. An atmosphere of openness can only serve to help our overall industry and business practices. After all, although most of us are fiercely independent, we are all in this together.

Scott F. Soape

Unlicensed Practice of Law (UPL) Risk

2008-05-20T16:37:00.000-05:00

It is extremely important in this profession that you make clear to all parties you are not an attorney and cannot provide legal advice (unless, of course, you happen to be a lawyer). Those in the legal profession take this very seriously and some can be quick to accuse a careless debt negotiator of UPL.

Since starting my practice in 1997, I have never had a problem with this. All of my correspondence includes a disclaimer indicating I am not an attorney and I preface all my initial conversations with prospective clients and creditors' agents with this same information. I strongly encourage everyone in this profession to state this as obviously as possible in all business related communications.

However, this is not always enough. Since we are often dealing with debts that have escalated to lawsuits, our clients may look to us for guidance with their cases. Be careful that you do not give advice that could be construed as "legal advice". Be clear that you only specialize in negotiating discounted out-of-court settlements and you should not have any problems with UPL accusations.

As an additional service, I also suggest that you check your area for 1 or 2 reputable civil defense lawyers as referrals for any of your clients that you are unable to help with a settlement. This may not earn you any fees but it goes a long way in "good-faith" relations with your clients and may get you a referral from a happy one later.

Following these guidelines and using the wording provided in my sample correspondences will help ensure you a long and profitable career in this exciting profession.

Scott F. Soape

An Actual Recent Case

2008-05-14T11:53:00.000-05:00

Locating cases, obtaining clients, negotiating settlements and getting paid can be a very simple and quick process in the commercial debt resolution profession.

As an example, on April 15th I identified a potential case lead at the local civil court records division of the county court. The debtor business had been sued by a local phone book for not paying on their yellow pages listing and the plaintiff was asking for $11,755.20 in principal, $3,900 for attorney fees, reimbursement of court costs (usually about $275) and post judgment interest on the entire debt until paid.

I immediately sent a letter offering my service to the owner of the business listed in the lawsuit at the address indicated. I followed up a few days later with a phone call and discussed my service. The owner expressed an interest but wanted to think it over first. On April 25th, he called me back and I faxed him a contract.

Since I knew from years of negotiating with the attorney representing this plaintiff (creditor) that a discount would be tough to get on the debt, I set my fee at a flat $350. It was also clear this business had very limited resources and a higher fee might be hard to collect.

After a phone call and 2 emails to the attorney, I had a final settlement offer of $12,000.00 payable in 24 monthly installments of $500 each (basically a 2 year loan with no interest). The client accepted the settlement on May 1st and I received a check for my fee immediately thereafter.

The total turn around time from identifying a lead to getting paid was just over 2 WEEKS but took only about an hour of actual hands-on work time for me.

This is just one example and the fee was set at my absolute minimum but you can see the results.

By the way, my client told me he had been contacted by another debt negotiator who offered to work for 35% of whatever he could save the business on the debt. I had intentionally set my fee as I did knowing I had competitors and knowing what to expect in the way of a final settlement. This helped me win the business.

My commercial debt resolution Business Plan System will teach you everything you need to know to operate your own business in this highly profitable profession. Please visit my website at http://www.debtresolutionbiz.com/ for details.

Scott F. Soape