The Cash Flow Group, Inc

Consumer and Commercial Debt Collection Florida

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Fort Lauderdale / Miami, FL

Toll Free: 800.226.2006

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Knowing when You Need a South Florida Collection Agency.

Thursday, December 13th, 2018 | The Cash Flow Group | No Comments

The Cash Flow Group, South Florida Debt Collection

As a business that deals strictly with other businesses, you would naturally expect that you would not have any problems getting your customers to pay their bills. After as your customers are other businesses, surely they understand how important it is that they pay their bills in the same way as they expect their customers do. Sadly, this is not always the case as you will find that from time to time you are going to have to hire a collection agency to recover your money.

In as much as you would like to be able to count on all of your business customers to pay all of their bills on time, there are going to be times when this just is not going to happen. When the time comes that one of your customers does not pay, you may be left with no recourse other than to contact a collection Agency such as The Cash Flow Group. We specialize in business debt collections and our team of experts will work with you and your customer to ensure that you get the money you are owed.

Is a debt as “uncollectible.” South Florida Debt Collections

Thursday, December 13th, 2018 | Florida commercial collection agency | No Comments

South Florida Debt Collection

South Florida Debt Collections

One question that business owners often have to wrestle with at tax time is whether or not to write off a debt as “uncollectible.”

If your business uses a cash basis accounting system, this isn’t an issue for you. In a cash basis accounting system, you don’t count money that you’re owed until it’s paid to you. You can still write off any expenses related to an unpaid invoice, but you do not owe taxes on any unpaid income. If you are a very large company this also is unlikely to be an issue for you. Large companies tend to use a reserve form of accounting and have a “bad debt reserve” to which they apply bad debts.

However, if you are neither a very large or very small company, you most likely file your taxes on an accrual basis. In accrual basis accounting, the unpaid invoice shows up as income on which you owe taxes. However, if you never collect that money, you can write off the amount as a bad debt expense.

From a tax-planning standpoint, it is usually best to take your write off as soon as possible so that you get the tax deduction now, instead of later. The only time taking the deduction later would be better is if you are expecting to be in a higher tax bracket later on. This is primarily a concern for sole proprietors and S corporations, whose annual income fluctuates more widely. However, even if you expect to change tax brackets, you can not randomly decide when to write off debts. There are no hard and fast tax rules about when you can consider a debt “uncollectible,” but the IRS does like to see consistency in your tax filing methods.

Generally, it’s hard to justify classifying a debt as “uncollectible” if the debt has been owed for less than 90 days. But, some warning signs that a debt may be uncollectible, even if it’s been less than 90 days, include a company declaring bankruptcy, a company refusing to answer communication, a company stating that they will not pay you, or a company simply disappearing. Once you have turned a debt over to a collection agency, you are also justified in writing it off on your taxes. However, if the collection agency is able to collect, you will owe taxes on the amount collected.

As a commercial collection agency, we (the cash Flow Group) recommend that you not wait until tax season to think about how you will collect on unpaid invoices. We advise clients to consider professional help with unpaid invoices that are 90 days or more overdue, or when they start to notice any of the warning signs that a business may not be willing or able to pay its bills.

Writing off bad debt is helpful to your bottom line, but what’s more helpful is actually collecting on that debt. For example, imagine that your company is in the 33% tax bracket and a company owes you $10,000. If you write that off as bad debt, you’ll save $3,300 in taxes. However, if you hire a reputable collection agency that charges 20% of the amount collected, you could get $8,000. Earning $8,000 is clearly better than saving $3,300.

Accepting Stock Instead of Payment?

Thursday, December 13th, 2018 | Florida commercial collection agency | No Comments

stock to cash,The Cash Flow Group

The Cash Flow Group a South Florida collection agency can help.

Sometimes, a company that cannot pay its bills may offer you stock, or equity instead of paying what is owed. If you have a personal relationship with the company, or truly believe that their financial problems are temporary, this can be a tempting option. It may seem that by accepting stock options, equity, or other collateral, you are avoiding the hassle of collecting on the debt. Perhaps you want to give the company a chance to fix things in the hopes that may be able to make more money in the long run.

Accepting stock or equity may also feel good emotionally. No one wants to think that they’ve been misled, or that they’ve made a bad decision about when to extend credit. Unfortunately, it is rarely a good idea. For starters, unless the company is public, it is very difficult to turn your stock into cash. If the company is public and having financial difficulties, their stock is probably not worth very much.

If you are determined to pursue this idea with a company that owes you money make sure to do your due diligence. Remember, once you accept stock in place of payment, you are no longer a vendor, you’re an investor. If this company’s business model and current situation means you wouldn’t invest in them under normal circumstances, don’t do it now when they’re already in trouble. Make sure that you also research any potential tax implications, IPO plans, and the effect that not receiving money immediately will have on your own cash flow. Make sure any agreement you sign is fully reviewed by a lawyer and does not leave you responsible for other debts the company may have incurred or may incur in the future.

Most importantly, before accepting stock options or equity, make sure to consult with a commercial collection agency like The Cash Flow Group. With our years of experience, there may be things we can do to get you the money you are owed. If you want to invest in a company, make sure that you’re doing so because you believe in the company and think it’s a good investment, not because you’re desperate to resolve a difficult situation.

Know when to Make a Deal on that Invoice? South Florida collection agency

Thursday, December 13th, 2018 | Florida commercial collection agency, Florida Debt Collection, The Cash Flow Group | No Comments

South Florida collection agency

 

Tips from THE CASH FLOW GROUP a South Florida collection agency, When it comes to companies that owe you money there are two basic types, those who won’t pay and those who can’t pay. With a company that can pay, but won’t, either because they are unhappy with the work or simply want to get away without paying, it’s best to act quickly. If a company is attempting to cheat or defraud you, your best course of action is to send them to a South Florida collection agency, as quickly as possible. However, if a company wants to pay you but is having a cash flow or other financial problem, you may want to consider making a deal.

The first step in deciding whether or not to consider a deal is to get a thorough understanding of the nature of the company’s financial problems. Ideally, you would start to notice signs of financial problems with a company before the invoice was due. That way you could be prepared and even discuss the problem before the payment is late. But, if an invoice is going unpaid, especially from a formerly trusted client, you may want to get on the phone and find out what’s going on. It’s likely that your contact in Accounts Payable, or on your project, will not be willing, or able, to share the full scope of the issue. In this case, you’ll want to speak with an executive or owner, someone qualified and able to share details.

The most compelling reason to make a deal is if a deal is the only way you’ll receive any of the money that you’re owed. If a company is on the verge of bankruptcy or closure, a deal may be your only choice for getting paid. If, however, the company is experiencing a temporary cash flow problem or is likely to rebound, you may want to negotiate a new payment date and add fees or interest. Be careful though, plans to recover from a financial problem are never a sure thing. By agreeing to wait to be paid you could wind up losing the short window of time in which you could be paid. Once a company goes to bankruptcy you are unlikely to ever recoup your money.

Deciding when, how, or whether to make a deal for owed money is complicated. Most people simply do not have the legal or professional expertise to know when it is and isn’t a good idea. That’s why we always recommend consulting with a professional commercial South Florida collection agency. A reputable commercial South Florida collection agency is trained to get you more of the money you are owed than you can on your own and can save you time and irritation. If you have an account that you’re considering making a deal on, give The Cash Flow Group a call first.

Collection Fees and Interest in Commercial Collections

Saturday, December 1st, 2018 | Florida Debt Collection | No Comments

Collection Fees and Interest in Commercial Collections

Collection Fees and Interest in Commercial Collections

 
The Cash Flow Group’s goal is to try to recover your money without going to court.  Yet, sometimes litigation is necessary. Clients often wonder if they can add our collection fees to the collected amount. These costs can add in specific situations.
 

Collection Fees and Costs

A contract between the parties that states collection fees are due in the event of late payment. After this, collection fees apply. Keep in mind that having this provision on your invoices may not be enough.  Many states need you to have a document signed by your customer. This document needs to be indicating they agree to this specific provision. The Credit Application is the generally the best document in which to place this term.
 

Attorney Fees

Attorney fees apply if there is an attorney fee provision in a contract. There are some cases where the attorney fees are not in the contract. The judge has some discretion on whether to add those fees or not. 
 
In many jurisdictions, the are basing the attorney fee award on a schedule. The award is not based on the contingency rate. First, you need to collect 100% of principal, interest and court costs. That is even if attorney fees are being awarded and added to the judgement. A percentage of litigation cases result in a voluntary payment for reduced a mounts. Because of this, it is rare to collect 100% of the original judgment amount. The amount includes interest and court costs in settled cases.
 
Thus, we often do not collect attorney fees even if they are being awarded.
 
Some contingency attorneys we work with structure their quotes. In these quotes, they get to keep 100% of any attorney fees. These fees are being awarded and collected. This is after all principal, interest and court costs are now recovered.  Their logic is this extra incentive to collect the attorney fee award. They keep the award in full. It gives them incentive to get the interest and court costs on top of principal. This way they can then pursue this ‘bonus’ for themselves.  Clients have control over two things. Whether to accept voluntary settlements or to pursue court ordered judgment collection efforts. But, this extra incentive for attorneys can help our clients.
 
These are a lot of factors to consider. As a result, keep this in mind when using a contingency attorney. Never expect any recovery of attorney fees when considering whether to sue or not.
 

Judgment Interest and Court Costs

Collection costs are not generally included in a judgment. But, a judge will generally include several things. These are pre-judgment interest, post – judgment interest, and initial court costs.
 
When is pre-judgement calculated? It is calculating from the original due date to the date the judgment is being issued. Either the interest rate stated on invoices or in a contract.  If there is no mention of interest on the invoices or in the contract, then a judge may  use the statutory rate. The statutory rate is different for each state, but is often between 6% and 10%. The judge may determine that the creditor is not entitled to pre-judgment interest. This is if there was no mention of interest in the agreement between the parties. 
 
Post-judgment interest generally depends on the same criteria. It also accrues from the date of the judgment until paid. Sometimes the interest rate on invoices or in contracts are high or above the usury limit. The judge may now allow it or may limit interest to a lower rate.
Pre-Litigation: Collecting Interest and Collection Fees You may wonder why we rarely collect interest or collection fees even when they are in the contract.  The bottom line is that if a debtor offers to pay the principal balance in full on a voluntary basis, but only if our client waives interest and collection fees, we have never had a client reject this offer and instead litigate.   Litigation has up-front costs, can take months to years, has a higher contingency rate, and an uncertain outcome.  The right business decision is to take the voluntary payment of principal only, instead of pursuing more amounts through the courts.

Collection Agencies

Other collection agencies may tell you that they get interest and collection fees on a regular basis If they are collecting credit card debt, where these fees are the creditor’s business model and the consumer knows that up front, the debtor expects to pay interest and will But on standard B2B claims, all collection agencies run into the same issue of a business negotiating to not to have to pay fees.
 
It’s frustrating to have spent months trying to collect money and to know that you are entitled to interest and fees that you may not be able to collect.
If you need help with a Collection Fee please contact The Cash Flow Group.

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What Your Clients Need to Know About Debt Collection

Saturday, December 1st, 2018 | Florida Debt Collection | No Comments

What Your Clients Need to Know About Debt Collection

 
One of the best ways to solve debt collection problems is to prevent them from happening in the first place. Work with your clients to notice any warning signs.
 
So, how can you keep up to date on every industry when you have time to run your own business? Obvious sources like reading The Wall Street Journal or listening to NPR can give you a general overview of most industries. Many larger companies use “knowledge managers” or librarians to create digest versions of relevant news. You can do something similar for yourself with daily news digests, including industry specific ones, and Google Alerts for relevant industries. Apps such as Owler, Nuzzle, and can also help you create personalized news feeds that give you the big picture you need.
 
If you do notice news that might have a negative impact on your client or customer, it doesn’t mean you have to cut them off or change payment terms, but depending on the news, you may wish to check in with the client or consider diversifying your client base.
 
Being informed about what’s going on in a variety of industries can help form better relationships with your clients. As a bonus it may also make you a more interesting guest at parties!
 
At The Cash Flow Group, we hope all your clients stay healthy and pay their bills on time, but if not, let us know how we can help.

The Cash Flow Group, FB

Fort Lauderdale / Miami, FL

Toll Free: 800.226.2006

Florida Collection Agency – Nonpaying Clients

Sunday, November 25th, 2018 | The Cash Flow Group | No Comments

Florida Collection Agency – The Cash Flow Group

 

Call The Cash Flow Group

How to Spot the Signs of a Nonpaying Client

Every single business owner in the US has experienced problems with nonpaying clients. The following shoes the worrying statistics once an invoice is delinquent. Collecting on the debt decreases by more than 1 percent every week the debt remains unpaid. Once the invoice is 90 days overdue, you have less than a 70 percent chance of collection. This drops to almost half once the invoice is six months overdue. Rapid action is necessary and taking steps could improve the situation. Consider putting in place a B2B online payment processor.
 
The key to resolving nonpayment issues is to look for the red flags. Flags that show a client could be in trouble before a company even misses a payment. Here are some top things to look for that can show future payment problems.

Red Flag Signs

  • The company is changing locations. It’s expensive to move, so you need to look at the reasons behind it. Is it a smaller location? If so, that could point towards financial problems resulting in downsizing. If it’s a bigger location, that could be a good sign. Financing expansion is often at the expense of companies that the company deals with.
 
  • The company is laying off workers. The cause of this is usually financial problems. You may notice that an employee you usually deal with has disappeared. This could be a sign that he or she has moved on to a more reliable workplace before the company goes out of business.
 
  • The business is being sold. Usually, a business is only sold when financial difficulties are being experienced. When the company sells, collecting on overdue invoices becomes harder than ever.
 
  • Personal problems. If your client is running a small business, problems could take priority over overdue invoices. Problems such as marital difficulties or an illness,
 
  • Excuses. You may here, “We can’t find the invoice.” “The invoice isn’t approved yet.” “The person responsible for signing checks isn’t in the office at the moment.” This could be a subtle indicator that all isn’t right at the client’s end.

What to Do When You Spot A Red Flag?

If you recognize any of these signs from one of your customers, it’s time to get some answers. Call the client and find out more about the situation. Whenever possible, speak to several people. Then you can determine the consistency of the story. If possible, go to the client’s premises and find out the extent of the problem.
 
If you suspect there is a red-flag situation with one of your clients, you need to take aggressive action. If not, you won’t receive a payment quick, or, even, at all. Give the account extra attention and avoid waiting around to see what happens.

How to Improve Chances of Payment

One of the best ways to improve the chance of payment is to put in place a B2B online payment processor. This makes the process of paying for goods and services a lot simpler and more convenient. Use An online payment portal that accepts many payment methods. A portal can make the difference between receiving payments on time and having to chase nonpaying customers. Also, put in place the facility to take payments over the telephone.  During collections, telephone conversations will help to improve cash flow with real-time authorizations. This way you don’t have to rely on waiting for the client to write a check.

Call the Cash Flow Group today with any questions or concerns you might have.  We look forward to hearing from you!

Florida Commercial Collection Agency – Top Tips

Tuesday, November 20th, 2018 | The Cash Flow Group | No Comments

Florida Commercial Collection Agency – The Cash Flow Group

Top Tips For Small Business Owners

Having a small business can be a very exciting venture. There are also many tedious procedures. You need to follow these procedures so the business can function well. Being a business owner is a major responsibility. Even if that business is small. It can be a very steep learning curve to discover how to best manage and run that business. All this sounds daunting, but there is good news! There are many service providers that can help you manage the different elements of your organization. While there is any number of things that your business will need to be a success, three are of key importance. They may not be especially exciting, but they are vital. Business owners tend to overlook them at their peril. The key elements are business insurance, accounting services, and online payment processing. These are for all small business owners. Let’s take a look at why each is important and why you should make sure you have them in place.

Accounting Services

Having good accounting services is key to your business’ success. This goes for whatever type of company you have and whatever size it is. Accounting is vital to keep track of all your company’s accounts. Equity, liabilities, and assets and for any business to function well. Having a strong grip on how, why, and where money goes. You can opt for online accounts services. Or use the services of accounts to keep this information within easy reach. Keep on top of all transactions. This way you can plan your budget, report your profits, and keep investments in your company with ease.

Business Insurance

Car insurance helps drivers if they have an accident. Business insurance is essential to protect your business in case something goes wrong. Being prepared for a worst-case scenario is essential. Having a backup plan is as essential should anything go wrong. There are many kinds of business insurance. Insurance including fire, hazard, unemployment, and workers’ comp. Making sure you have the ones that are most appropriate to you in place is essential. Insurance is all the well-being of your business.

Successful Debt Collection

Friday, November 9th, 2018 | Florida commercial collection agency, Florida Debt Collection, The Cash Flow Group | No Comments

Tips for Successful Debt Collection by Phone and Email

What is one of the biggest mistakes you can make? People try to collect an unpaid debt while communicating in an unprofessional manner. Being in debt and collecting debt can both be stressful situations. There are many laws around debt communications.

Phone Calls

The phone is generally seen as the most effective and efficient way of collecting an unpaid debt. Some general rules to follow:
 

Be polite and professional.

No gum chewing, eating, or web surfing while calling.  Use please and thank you, and introduce yourself. One trick receptionists have used for years is to smile while on the phone.
 
Call at the right time of day. Some people work mornings, others don’t come into the office until the afternoon. By knowing when the debtor is available to talk on the phone, you can avoid playing phone tag. Ask the debtor what time they are generally available. Doing this can save a significant amount of time.
 
Take notes or record conversations.
If you are going to record a conversation, you must get permission first. But taking notes can be effective. By keeping a log of any agreements or issues, you can avoid repeating what you have already said. After the call, send an email summarizing the conversation and any commitments so there are no disagreements later.
 
Be careful about leaving messages.
It is very important that debt collectors never disclose private information. As a general rule when collecting from individuals, collectors should assume that any voicemail messages they leave will be heard by somebody other than the debtor.  If it is a business debt, full detail can be left on any business phone number and personal phone known to belong to a involved party.
 
Don’t blame or shame.
Having unpaid bills is stressful. It is not helpful to blame the debtor or imply that they have failed by not upholding their commitment to pay. Doing so will only make them upset and less willing to pay. Speak and find out why the debtor hasn’t paid their bills, and then try to work towards a solution to the problem. If they have a complaint about the product or service, find out why and try to resolve the complaint. If the customer doesn’t have the money at that time, ask them to prove this and have them suggest a solution. Forcing the debtor into a payment plan they know will default on will likely cause the debtor to be less interested in working with you.
 
Email
Although phone conversations are the preferred method for discussing unpaid debt, email also has an important role to play, especially when documents are being requested or sent, a paper trail is needed, or for quick follow ups and reminders.
 
If you can’t write, don’t.
Everybody knows their own skill set. If you are not a good writer, please do not write your own emails. Instead consider hiring an in-house or freelance copywriter to create a set of email templates for you that will help you communicate.
 
Be polite and professional.
Because tone of voice is so hard to determine in an email it’s especially important that you be polite and professional. Do not attempt to joke or be lighthearted about the situation. Keep your messages short and ensure they only emphasize the point you want. Shorter emails are more likely to be read in their entirety, and if you make the message you want to send to the recipient very clear they’ll be sure to get the point.
 
Being polite also includes responding to emails on time. If you want someone to respond to your emails, you must do the same for them.
 
Create a factual and short subject line. Your recipient will be far more likely to open the email if they know what it’s about.
 
Don’t send the message to people who don’t need to see it. Remember that any email communication can be used in a lawsuit if the debtor sues you for disclosing information to parties against regulation (especially in the case of consumer collections). Email communications are permanent, and the debtor will be able to find a copy of the message stored online with ease.
 
Communications are one of the tricky elements that sometimes makes it easier to hire a professional collection agency. If you’re having trouble finding the right way to talk to debtors, please give us a call.

The Cash Flow Group

Fort Lauderdale / Miami, FL

Toll Free: 800.226.2006

commercial collection agency

Monday, November 5th, 2018 | Florida commercial collection agency, Florida Debt Collection, The Cash Flow Group | No Comments

When it comes to companies that owe you money there are two basic types, those who won’t pay and those who can’t pay. With a company that can pay, but won’t, either because they are unhappy with the work or want to get away without paying, it’s best to act . If a company is attempting to cheat or defraud you, your best course of action is to send them to a collection agency, as as possible. Yet, if a company wants to pay you but is having a cash flow or other financial problem, you may want to consider making a deal.

Commercial collection agency

 The first step in deciding whether to consider a deal is to get a thorough understanding of the nature of the company’s financial problems. , you would start to notice signs of financial problems with a company before the invoice was due. That way you could be ready and even discuss the problem before the payment is late. But, if an invoice is going unpaid, especially from a trusted client, you may want to get on the phone and find out what’s going on. It’s likely that your contact in Accounts Payable, or on your project, will not be willing, or able, to share the full scope of the issue. In this case, you’ll want to speak with an executive or owner, someone qualified and able to share details.
 
Sometimes making a deal is the only way to receive payments. If a company is on the verge of bankruptcy or closure, a deal may be your only choice for getting paid. If the company is experiencing a temporary cash flow problem, you may want to negotiate a new payment date and add fees or interest. Be careful though, plans to recover from a financial problem are never a sure thing. By agreeing to wait for payment you could lose time in which you could receive. Once a company goes to bankruptcy you are unlikely to ever recoup your money.
 
Deciding when, how, or whether to make a deal for owed money can be overwhelming. Most people do not have the legal or professional expertise to know when it is and isn’t a good idea. That’s why we always recommend consulting with a professional commercial collection agency. A commercial collection agency will help get the money you’re owed. If you have an account that you’re considering making a deal on, give us a call first.

The Cash Flow Group

Fort Lauderdale / Miami, FL

Toll Free: 800.226.2006

The Cash Flow Group, Inc

3389 Sheridan Street

Suite 135

Hollywood, FL 33021

Email: info@thecashflowgroup.com

800.226.2006 Toll Free

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