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For companies dealing with other business entities, debtrecovery for services rendered can prove a difficult task. Throughout the debtrecovery process, you may be tempted to take the path of least resistance and try to either put the situation behind you or turn to a collections agency. Cohen LLC. . Receivership.
As experienced collections attorneys, rather than providing a multitude of services to our clients in many different areas of law, we prefer to focus on debt collection and construction litigation with an expanded coverage area, which has resulted in our incredible success in Massachusetts debt collection. At the Law Offices of Alan M.
Most Concrete Pumping companies do not require collateral for their accounts receivable; however, the Company may file statutory liens or take other appropriate legal action when necessary on construction projects in which collection problems arise.
To address these issues, our latest blog explores the QCR Accelerator, a state-of-the-art , plug-and-play collection software specifically designed to streamline and automate debtrecovery processes. HURDLES IN DEBTRECOVERY Financial institutions are encountering considerable difficulties in collecti ons concerning unsecured loans.
Thus, timely debt collection is crucial for every business. Moreover, debtrecovery is directly associated with your credit score. Therefore, it is vital to have a robust debt collection strategy to enable you to stabilise your cash flow and acquire money from your debtors without hampering your business relationships.
These often involve initiating legal proceedings against debtors intending to repossess, auction, and sell collaterals or executing payment orders to seize the debtor’s assets or income. Regardless of the outcome and the ultimate objective of recovery, multiple implications could potentially jeopardise the entire strategy.
Often, a business cannot or is unwilling to put up collateral to secure a line of credit. Character: The company’s record of repaying debt. Collateral: Any asset that the company is willing to pledge to secure the loan. Capital: The amount of money the company has on hand to pay debts. Usually found in a credit report.
These actions can help secure the debt by leveraging their assets as collateral. Collection agencies: Engaging a professional debt collection agency specializing in commercial debts can be an effective strategy. Persistence is key to increasing the chances of debtrecovery.
UCC filings are the standard for placing liens against other businesses or individuals with collateralized agreements. In each of these instances, the collateral for the UCC will vary. For example, if a business is leasing equipment, the collateral for that particular UCC filing is the equipment that is being leased.
You also don’t have to sit helplessly in the face of bad debts when your debtor fails to make payments. Cohen, can turn bad debts into definite debt payments, while you enjoy a stress-free debtrecovery experience regardless of where you are located—in the state of Massachusetts, another state or another country.
Debt can also be secured using intellectual property, equity, and other soft debt. Missing payments on secured debt causes the creditor to repossess the property as recourse. If collateral is seized, it often occurs in court, leaving a record for other partners and vendors to dig up. Indenture Agreement Violations.
Businesses need collateral for secured loans, which can come in different forms: Asset-backed loans. Collateral can be real property or liquid assets. As lenders can seize the collateral, secured loans are generally easier to approve for businesses without a lot of credit or financial history. Commercial property loans.
Secured debt: If a business receives a loan or other credit — like a credit card — because of specific assets or liquid collateral, they have secured debt. Though more uncommon than equipment leases and unsecured debt, some businesses are able to acquire secured credit options.
While there might be property debt situations that warrant garnishment, it’s more often used for unsecured debt, or debt that isn’t backed by any collateral. Though the IRS can initiate the garnishment process without court approval, other creditors and debt collectors have different requirements depending on the state.
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