Monday Morning Memo | Just In Case You Missed Our 7 Deadly Mistakes Webinar Everyone is busy, we understand that better than anyone, so if you missed our webinar on the 7 deadly mistakes people make in the staffing and recruiting collections industry, here is a quick recap on what you missed!
The first mistake that we often see is that companies do not get a personal guarantee when they extend a line of credit to a client. This is a deadly mistake that can cost you money because 80% of businesses will go out in the first two years and an additional 80% will go out in the third year. So, make sure to get a personal guarantee from the head of the company because if they are not willing to take the risk, why should you?
Next, when a company is in the process of signing a new client they do not have a separate form for credit application. This can be dangerous because if a company goes under then their attorneys will look for any escape clause. If you do not become secured creditors, at least add wording to your contract that allows you to file UCC1. Each state has slightly different rules, so make sure you get a signature and details such as personal address from anyone you enter business with. This is important because you should always file where your debtor is located. We advise that a creditor should ALWAYS add to the client application, “the debtor agrees to pay any and all litigation out of collections in the state your jurisdiction is in”. This is the best way to protect your company.
Another mistake we have seen companies make is they do not do their due diligence when signing a new client. This can even be just a simple Google search on the company, but you may be unpleasantly surprised what surfaces if you do not do your research. We once did a Google search on a potential client and found a live news article as they were on the run. I hope this does not happen to you, but it should go to prove our point. As you are doing your due diligence, make sure to check with the secretary of state and see if the company information you were given matches the description filed with the state. This is an extra step that we highly encourage to avoid any deception or misinformation about the foundational aspects of the company.
Over the last 30 years Adams, Evens, & Ross has become the largest credit and collection firm in the world that collects exclusively for the staffing and recruiting industry. With offices located in the US, Canada, UK, and Asia, servicing more than 3500 staffing and recruiting firms, Adams, Evens, & Ross is the undisputed credit and collection leader for the staffing and recruiting industry. All we do is collect past-due recruiting debt and past-due staffing debt.
One of the many benefits of dealing with Adams, Evens, & Ross is we do not have to learn how to collect your past due staffing and recruiting debt. Our people are our secret. We are one of the few collection firms large enough to have Staff Attorneys on staff along with Seasoned Collectors, Asset Investigator and World-class Support Staff. There is no doubt why Adams, Evens & Ross is the only collection firm in the world that is endorsed by 5 funding companies, 14 associations and 10 recruiting and staffing trade magazines.
To turn over a past due account, click the link below:
To subscribe to our FREE Credit Alert Email, an email that is sent out weekly that identifies the companies that have not paid other staffing and recruiting firms, click the link below.
To book an appointment to discuss your specific collection issue, click the link below:
Call us at 800-452-5287 Ext 6578 to discuss your collection issue.
0 Comments