Businesses have many needs for capital. They may need cash flow to cover accounts receivable, they may need funds to expand, or they may need money for payroll. Often, a business cannot or is unwilling to put up collateral to secure a line of credit. In this case, the company can apply for an unsecured line of credit. Credit Application When approving a customer for an unsecured line of credit, it’s important to have a good understanding of the company’s profile. The best way to do this is by using a complete and comprehensive credit application. A credit application should include: The name ..read more

Most businesses will eventually need to borrow money or enter into a lease agreement. Whether it’s venture capital to get new technology off the ground or a lease for office equipment, financial transactions like these happen. There’s nothing wrong with this – it’s a standard course of business in many industries. In fact, some industries thrive on utilizing their debt efficiently to make the most of their cash flow. But how does a company determine its own debt capacity? And how can debt capacity be calculated when reviewing financials for another company? This blog will look at the finer poi ..read more

Feds Raising Rates: What You Need to Know The Feds have signaled that they’ll likely raise interest rates again in 2022. And this is important to know if you plan on taking out a loan in the near future. Because interest rates affect almost everything, but most especially loans. When interest rates are higher, borrowing money — whether it’s to buy a house, a car, or something else entirely — is more expensive. In this article, we’ll discuss rising interest rates and how they affect you. What Is the Federal Reserve, and How Does it Impact Interest Rates? The Federal Reserve, also known simply a ..read more

One of the most crucial lessons the global community has learned in the last few years is the importance of supply chains and their impact on daily life and business. When supply chains are functioning well, they go almost entirely unnoticed, but even a slight interruption at a critical point in a supply chain can send things into turmoil. Let’s take a closer look at how supply chains function and how they can best serve your business. What Is a Supply Chain? A supply chain is a series of connections between companies, individuals, and various intermediaries that provides consumers and busines ..read more

If a commercial account goes unpaid for an extended period of time, there will come a point when the business doing the billing takes additional action to recover the money. The delinquent account is put in collections. An account placed in collections has the potential to be paid in full, partially, or not at all. The question is when to place an account in collection. When to Shift Unpaid Accounts to Collection The age of the account is the primary determinant as to whether the account should be placed in collections. In general, the rate of financial recovery for an account that is a couple ..read more

Extending credit to commercial customers can be a win-win situation for your business and your customers. It gives you a chance to build what could be a long-standing and lucrative relationship, and it enables your customer to buy more from you through commercial debt. However, the credit is a form of a loan, and the money isn’t yours until it’s in your bank account. A credit application provides a path for mitigating risk, even though it does not eliminate it. Instead, it establishes rules between you (the seller) and your customer (the buyer), so both of you understand what’s expected. Ultim ..read more

The quest to obtain financial compensation for unpaid commercial debt might require legal action. To be more specific, you need the assistance of a commercial debt collections specialist to pursue civil litigation on your behalf. Your legal action as a plaintiff is filed in the appropriate court, setting the stage for a lawsuit that obtains financial compensation from the debtor, referred to as the defendant. Commercial Debt Recovery Through Civil Litigation Commercial debt collection is performed after a business fails to provide payment for services or goods rendered. Such litigation is typi ..read more

When you’re attempting to collect a debt from a commercial customer, you know that every second counts. After all, the older the debt is, the harder it becomes to collect. When the traditional letters, phone calls, and negotiations fall short, it may be time to consider filing a debt collection lawsuit against your customer. Filing a claim for unpaid debt in civil court can be a complex, time-consuming process. You may have already hired a third-party collection agency, which has recommended litigation as your best option for collection after their own collection efforts proved unsuccessful. W ..read more

You’ve spent months chasing down a company that owes you money. Now you hear the dreaded news: Your non-paying customer is filing for bankruptcy. After the time, money, and resources you’ve invested in this customer, you are likely wondering about your options. Some businesses might write off the claim altogether upon learning this news. However, if the debtor owes a significant amount, you may want to consider pursuing the debt in bankruptcy court. A Chapter 11 commercial bankruptcy filing is a serious legal matter that brings its own unique set of time constraints. Even in a best-case scenar ..read more

Running a business involves the provision of goods or services in exchange for payment. In a perfect world, this exchange should be seamless. However, we are not in a perfect world, and sometimes clients may fall back on their payments. Unfortunately, this tends to strain your business operations. The good news is that it is your right to collect on debts as long as you follow the right legal procedures. If you operate a B2B model, you are required to follow business debt collection laws. If you owe or another business owes you, you are in good company because this article discusses the nitty ..read more