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
Tuesday, March 1, 2011
Saturday, February 12, 2011
A Couple More Student Comments
I continue to receive positive feedback on my commercial debt resolution Business Plan System. Below are just a couple I recently received...
"Scott, I just wanted to take a moment to tell you I love the course and see its potential." Carlos P., California
"Hi Scott, Received your Business Plan System today. Good stuff!" David F., Minnesota
As always, I welcome any questions or concerns from anyone considering investing in my program. Please fee free to call or email me.
Scott F. Soape
"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
Tuesday, February 8, 2011
A Surprise Case
A courthouse visit late last December generated about a dozen qualified leads for recent lawsuits (my Business Plan System explains in detail how to find these). I went through my usual process of mailing my powerful Prospect Letter and following up with phone calls a few days later. These efforts resulted in my landing several fee generating clients within about a week or two.
However, I was never able to speak directly with one of the prospects and could only leave a couple of recorded messages, the last being on January 6th (leaving more than 2 or 3 messages becomes a nuisance). I figured this business had either retained an attorney or had closed their doors for good.
To my surprise, I received a call on January 31st from the owner and he retained my services the next day. He had waited until the last minute to deal with this problem so I immediately requested and was granted an extension on the answer date to the lawsuit. After a couple of emails and ONE week later, I had negotiated a discounted out-of-court settlement and earned a $650 fee...
Original Debt: $11,030
Settlement: $8,250 payable over 24 months at a 6% APR
Savings to Client: $2,780 (plus waived attorney's fee of $3,670)
This is just one example to how getting the word out about your service can result in cases you never thought you might get. Continuing to prospect for clients on a regular basis can pay off in unexpected ways.
Scott F. Soape
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
Wednesday, February 2, 2011
Using a Virtual Office
My commercial debt resolution Business Plan System easily lends itself to a home-office workspace if you do not want to bother with a regular office. However, you may also want to consider using the services of one of the many "virtual office" companies.
There are many pros and cons to these types of services and a wide range of costs so you will need to make your decision entirely on an individual basis. I located a website that provides a very thorough explanation of exactly what these services entail. Please click the below link to see the whole story...
www.communication.howstuffworks.com/convergence/virtual-office
Scott F. Soape
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
Wednesday, January 19, 2011
Attention: Financial Professionals
If you already happen to be a CPA, insurance agent, financial planner, accountant, judgment enforcer, etc., adding commercial debt resolution to your practice could easily add extra revenues to your business.
One of the great things about this profession is the URGENCY of the cases. When dealing with recent lawsuits for monetary damages, clients must address the situations quickly or risk judgments in the creditors' favor. When you resolve these cases to their satisfaction, the door will be wide open to offer any other services you have.
Most financial services have no urgency and clients will often put off any action. Constantly reminding clients of the need to address these situations is about the only way to spur action on their part. This can take weeks, months, even years.
Resolving court-case financial disputes usually results in cases being landed immediately and fees being earned and paid within 2 to 5 weeks.
Although a background in financial services is NOT necessary to work this business, adding commercial debt resolution to your business mix can add substantial fee income AND help build your core practice area.
Scott F. Soape
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
Wednesday, January 5, 2011
Some Related BBB Warnings
Please follow the link below to view some recent Better Business Bureau warnings related to debt relief (consumer not commercial) and work-from-home scams. Be assured, my commercial debt resolution Business Plan System does NOT fall into either of these categories and my company continues to enjoy an "A" rating from the BBB.
www.austin.bbb.org
Then click on their link for the "Top 10 Scams of 2010".
Scott F. Soape
www.austin.bbb.org
Then click on their link for the "Top 10 Scams of 2010".
Scott F. Soape
Friday, December 17, 2010
Fees
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
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
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