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
Tuesday, April 13, 2010
Thursday, March 11, 2010
Overcoming Objections
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
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
Friday, February 26, 2010
Disputed Debts
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
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
Friday, January 29, 2010
Get The Word Out!
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
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
Friday, January 15, 2010
Negotiating with Creditor Agents
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
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
Thursday, December 31, 2009
Real Case Examples
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
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
Wednesday, December 2, 2009
Helpful Websites (Part 2)
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.
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.
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