I think this was a record settlement.
On Monday, August 27th, a prospective client retained my services to negotiate a settlement on a lawsuit. I immediately emailed an offer to the plaintiff's attorney. After some back and forth communications, he made a very favorable counter offer the following Tuesday, September 4th, which my client accepted.
This was an extremely quick chain of events and the fast settlement was primarily due to the response time from the creditor / plaintiff and their attorney. I am sure that having some history and a good working relationship with this attorney also helped.
Once again, all parties benefited... I negotiated a substantial discount and favorable payment terms for my client, the creditor will receive a dollar amount they found acceptable without further litigation and I earned a several hundred dollar fee for my efforts.
Scott F. Soape
Saturday, September 15, 2012
Saturday, August 4, 2012
An Unusual Case
After 15 years in this business and with hundreds of cases negotiated, I think I have a pretty good feel for telling when a negotiation has gone as far as it can. Recently, though, I learned a new lesson.
One of the attorneys I deal with on a regular basis was representing a creditor that I have only encountered one other time. In that previous case, this creditor was very unwilling to make concessions for a discounted settlement. They also took a lot of time to respond to settlement offers which caused the negotiations to drag out for over two months (3 weeks is more typical).
This time around, the creditor was quicker to respond and after about 3 weeks they responded to one of my offers by indicating they were sticking with their last offer and would not come down further. My experience has been that this is an indication negotiations are over regarding the dollar amount. The only other area for negotiation involves how the settlement will be paid, i.e. lump-sum or a payment plan with a negotiated time frame.
When I presented this information to my client, they were not pleased with this outcome and asked me to see if the creditor would accept a slightly higher amount than our last offer but in a lump sum. My instincts told me this exercise would be fruitless, but I decided to give it a try along with an indication that my client might just close the business down if the offer was not accepted. Basically, the creditor could take the offer or risk getting nothing at all.
This last offer was substantially below what the creditor has said was their final offer but, to my surprise and pleasure, they accepted this lower amount.
The lesson here is that final does not always mean final. Making just one more attempt may mean the difference between a successful settlement with an earned fee or a wasted effort with no reward. Always push for a little better deal for your clients so you can be sure you did all you could.
Scott F. Soape
One of the attorneys I deal with on a regular basis was representing a creditor that I have only encountered one other time. In that previous case, this creditor was very unwilling to make concessions for a discounted settlement. They also took a lot of time to respond to settlement offers which caused the negotiations to drag out for over two months (3 weeks is more typical).
This time around, the creditor was quicker to respond and after about 3 weeks they responded to one of my offers by indicating they were sticking with their last offer and would not come down further. My experience has been that this is an indication negotiations are over regarding the dollar amount. The only other area for negotiation involves how the settlement will be paid, i.e. lump-sum or a payment plan with a negotiated time frame.
When I presented this information to my client, they were not pleased with this outcome and asked me to see if the creditor would accept a slightly higher amount than our last offer but in a lump sum. My instincts told me this exercise would be fruitless, but I decided to give it a try along with an indication that my client might just close the business down if the offer was not accepted. Basically, the creditor could take the offer or risk getting nothing at all.
This last offer was substantially below what the creditor has said was their final offer but, to my surprise and pleasure, they accepted this lower amount.
The lesson here is that final does not always mean final. Making just one more attempt may mean the difference between a successful settlement with an earned fee or a wasted effort with no reward. Always push for a little better deal for your clients so you can be sure you did all you could.
Scott F. Soape
Sunday, July 15, 2012
Running a Business is Like Running
I have been working out and running ever since I discovered a gym with a universal weight machine and a track near my freshman dorm in college that were both open and available to all students. This morning, during one of my runs, I thought about some analogies I've heard over the years comparing success in business (and life in general) to running.
For each, you have to make a commitment and be consistent with your efforts. Letting up or laying off just makes it harder to get back up to your previous levels. Keeping up in running & in business is easier than catching up.
When I run through my neighborhood, there are hills. Running uphill takes more effort but when going downhill its tempting to ease up. Take advantage of the downhills and continue to push. When times are good in business and revenues are flowing in, keep working just as hard and don't ease up.
I like to end my runs with a sprint or an extra "kick". At the end of each hour, each day, each week, each month and each year, put in an extra "kick" to your business efforts. One more phone call, email, letter, meeting, etc. to try and build your business.
I know there are many more analogies, but you get the idea. Be consistent, persistent and dedicated to your business and you will see the rewards for your efforts!
Scott F. Soape
For each, you have to make a commitment and be consistent with your efforts. Letting up or laying off just makes it harder to get back up to your previous levels. Keeping up in running & in business is easier than catching up.
When I run through my neighborhood, there are hills. Running uphill takes more effort but when going downhill its tempting to ease up. Take advantage of the downhills and continue to push. When times are good in business and revenues are flowing in, keep working just as hard and don't ease up.
I like to end my runs with a sprint or an extra "kick". At the end of each hour, each day, each week, each month and each year, put in an extra "kick" to your business efforts. One more phone call, email, letter, meeting, etc. to try and build your business.
I know there are many more analogies, but you get the idea. Be consistent, persistent and dedicated to your business and you will see the rewards for your efforts!
Scott F. Soape
Sunday, June 10, 2012
Bank Referrals
Cultivating referral relationships with as many sources as possible is always a good idea. Commercial loan officers at local banks are in a unique position to encounter business owners experiencing financial difficulties. Getting numerous bankers on your referral list will dramatically enhance your revenues.
Bankers will be quick to know when their commercial loan customers are having problems. When you explain to bankers that you may be able to assist their commercial customers with their non-bank loans on a no results, no charge basis you will give them a very valuable resource to offer their customers.
By negotiating improved payment terms and / or discounted settlements with other creditors, their customers will have more funds available to make their bank loan payments.
Make a few inquiry calls to some of your local bank branches, both big and small, and try to speak with someone with the authority to approve referrals your way. Presidents and Branch Managers are obvious places to start but many banks have also set up special divisions specifically for problem commercial accounts. The more people with the bank you can make aware of your risk-free service the better.
Scott F. Soape
Bankers will be quick to know when their commercial loan customers are having problems. When you explain to bankers that you may be able to assist their commercial customers with their non-bank loans on a no results, no charge basis you will give them a very valuable resource to offer their customers.
By negotiating improved payment terms and / or discounted settlements with other creditors, their customers will have more funds available to make their bank loan payments.
Make a few inquiry calls to some of your local bank branches, both big and small, and try to speak with someone with the authority to approve referrals your way. Presidents and Branch Managers are obvious places to start but many banks have also set up special divisions specifically for problem commercial accounts. The more people with the bank you can make aware of your risk-free service the better.
Scott F. Soape
Friday, April 27, 2012
Another Business Resource
There are many reasons you may want to either incorporate your commercial debt resolution practice or designate it as a Limited Liability Company (LLC).
A good resource for assistance is LegalZoom.com. Click the below link for their website and browse for answers to common questions and pricing:
www.legalzoom.com
Scott F. Soape
A good resource for assistance is LegalZoom.com. Click the below link for their website and browse for answers to common questions and pricing:
www.legalzoom.com
Scott F. Soape
Wednesday, March 28, 2012
Your Edge Over Lawyers
I recently spoke with an attorney that specializes in commercial debt resolution and negotiating settlements. He indicated these types of cases were his primary source of revenue and that he has made a very comfortable living doing this for many years.
We discussed some of the differences between how I operate and how he operates. He brought up an interesting point which I was aware of but have not given much thought to in quite some time...
Lawyers are precluded from soliciting clients over the phone.
Although they can mail letters offering their service, attorneys are not allowed to follow up with phone calls.
This gives you a very important edge when contacting prospective clients since a phone call can be the most effective way to offer your "no risk" service to debtor businesses being sued.
I have said it before, but be sure to include follow-up phone calls when offering your service. It may be the only call a prospective client gets!
Scott F. Soape
We discussed some of the differences between how I operate and how he operates. He brought up an interesting point which I was aware of but have not given much thought to in quite some time...
Lawyers are precluded from soliciting clients over the phone.
Although they can mail letters offering their service, attorneys are not allowed to follow up with phone calls.
This gives you a very important edge when contacting prospective clients since a phone call can be the most effective way to offer your "no risk" service to debtor businesses being sued.
I have said it before, but be sure to include follow-up phone calls when offering your service. It may be the only call a prospective client gets!
Scott F. Soape
Friday, February 24, 2012
Keep in Touch with Referral Sources
My complete Business Plan System identifies several great referral sources for a continuous stream of qualified leads.
Set up a regular system to remind your referral sources of your service so that you will be the first person they think of as and when they encounter businesses that might benefit from your service. Send an email, brochure, flyer or short note on at least a quarterly basis. And be sure to thank your sources for any and all referrals regardless of whether or not a fee is generated!
Cultivating and keeping in touch with as many referral sources as possible will ensure a healthy commercial debt resolution practice.
Scott F. Soape
Set up a regular system to remind your referral sources of your service so that you will be the first person they think of as and when they encounter businesses that might benefit from your service. Send an email, brochure, flyer or short note on at least a quarterly basis. And be sure to thank your sources for any and all referrals regardless of whether or not a fee is generated!
Cultivating and keeping in touch with as many referral sources as possible will ensure a healthy commercial debt resolution practice.
Scott F. Soape
Subscribe to:
Posts (Atom)
