As somebody who recently graduated from college, it was interesting to see students struggling to pay their college debts. This was an area that interested me to see how many classmates of mine were stressing over paying their tuition on time. Paying money to a debt company is something a lot of Americans are faced with each year.
With a good amount of companies that have recently filed for Chapter 11 as a result of the recent recession, it is important to note that a company’s accounts receivable is the most important thing when collecting money for your business. Companies use accounts receivable (or A/R) to keep track of a company’s sales made along with the money they owe to people every month.
If the debtor cannot pay off the A/R in time then a collection attorney looks over the information regarding the A/R claim. The attorneys work in conjunction with the debtors to recover the disputed funds and repair the image of the company in the eyes of the public. The Fair Credit Reporting Act says that a collection attorney must give consumers accurate information about the money that is being disputed along with reinserting negative information on a consumer report in writing within five days and is not allowed to keep any negative information after a claim has been settled.
If you are unable to pay off the A/R in time then you would have to meet with a company that tries to get the debt that is supposed to be due. Collection agencies as they are known help to make sure that a debtors balance sheet is cleared and help to work to pay the money that is due on time. It is crucial that these collection agencies work with the debtors in order to clear their name and let the public know the person or company is trustworthy.
Paying off all your expenses is something that should always be kept in mind when running a business but it is also something that should be a concern 24/7. If businesses are not crazy in paying too much for their supplies the balance sheets will be a breeze when you are due to pay the accounts receivable. My advice for future business owners is to pay off the money you owe to people when it is supposed to be due to maintain a positive image for yourself and the way you run things.
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