Debtors can use stalling tactics
Canadian Corporate Legal Services has provided commercial debt recovery services in Toronto and beyond for over 25 years, recovering millions of dollars for our clients. Canadian Corporate Legal Services is frequently retained by small, mid-size and large businesses and accounting firms. Protecting your firm’s reputation is our top priority. Here is a candid article by Michael Lebovic, Paralegal and President of Canadian Corporate Legal Services:
When people are owed money they want their funds collected, but they are also concerned about how long it will take. Don’t be misled by an offer of an automatic speedy collection.
Some of our files resolve quite quickly but many others will not be resolved at Internet speed. We advise our clients to be patient, as painful as that might be, because, if you are not patient critical steps will be missed – missed steps that could end up hurting you in the long run!
Debtors can use stalling tactics. They understand the ins and outs of the system and manipulate the system to their advantage. It works sometimes. I personally think that letting people get away with that only adds to the stress on the legal system and allows people to evade their responsibilities, both civil and otherwise.
So we will not deny that sometimes it is frustrating. We are extremely particular in the steps that we take and we are very tenacious. Sometimes it gets wearying even for us, the professionals. But, it is important for people to know that when you get into this, you have a professional working for you. Take the file, dump it on him, and realize that sometimes you may have to come to court. It won’t be for a huge amount of time and there may be a couple of appearances, and there may be some times when you are going to have to put your hand in your pocket and spend money, but in the long run the chances are that you will come out on top.
We can’t always guarantee that, but we wouldn’t take a file to court and begin litigation unless we thought there was a good shot at recovering the debt. Keep in mind that a good shot doesn’t mean a guarantee. Nothing is guaranteed. But you have to be able to say to yourself: I am going to play all nine innings otherwise it is not worth getting into the game. Remember, the other team is prepared to stretch it out because they are counting on you to give up – so don’t!
For more visit: http://www.canadiancorporatelegal.com/
Small business finance trends to aware of
1. Trade credit is rebounding. More small businesses are arranging to buy goods or services on account, without making immediate cash or credit card payments.
2. Cash flow problems continue. A recent survey found that the number of small business owners who say they’re experiencing cash flow problems increased 4 percent between June 2009 and October 2010. Fortunately, the right credit or charge card can help entrepreneurs better manage their cash flow.
3. It’s cheaper to get started. Technology has made it possible to start a variety of businesses with little infrastructure and start-up cost.
4. If your business didn’t have to write off some bad debt during the recession, you were one of the few who escaped the burden of unpaid receivables. Perhaps driven by this experience, more small businesses are better managing the credit they extend to customers and keeping better track of their receivables. Manage your working capital well, and cash will flow.
5. Understanding your own company’s financial numbers will increasingly be more important than following the nuances of the financial markets. Control cash flow, and reducing costs.
6. Micropayments and subscriptions provide small businesses a new, innovative way to profit and serve their customers at the same time. Small, one-time charges and small, monthly subscription fees may be preferable to many consumers, and can provide a steady revenue stream to a small business.
7. More entrepreneurs will seek – and find – financial education specific to small businesses. Financial education can be found in many places, from forums on the Internet to your local university or community college. With more schools and advisers offering courses and advice aimed at small businesses, any entrepreneur who wants to expand his knowledge to grow his business won’t have any trouble finding educational resources to help him do so.
Michael Lebovic, Paralegal and President of Canadian Corporate Legal Services quoted in the Financial Post, Part Two
From Collecting from deadbeats is never easy, Drew Hasselback, Financial Post · Jan. 24, 2011 | Last Updated: Jan. 25, 2011 10:09 AM ET
Don’t wait too long
“I would say the biggest mistake that creditors make, both personal and business, is they wait way too long,” says Michael Lebovic, a paralegal at Canadian Corporate Legal Services (theydidntpay.com). Lots of people put off collections calls because they worry that pressing clients on debts might poison the waters and affect future business. That shouldn’t be a problem if you’re straight with the client about your needs. For example, your bank might require you to take action on debts that are outstanding for too long. For some people, delaying payment on bills is actually part of their business strategy. Be frank with them about the conflict, and maybe they won’t play the delay game.
The thing you need to keep in mind is each province has rules on limitation periods. The law can get a little complex, but the basic rule in Ontario is you can’t sue if the debt is more than two years old. You need to know the limitation period in your province so you can ensure you preserve your right to take legal action before it’s too late.
http://www.nationalpost.com/todays-paper/Collecting+from+deadbeats+never+easy/4154110/story.html
Michael Lebovic, Paralegal and President of Canadian Corporate Legal Services quoted in the Financial Post, Part One
From Collecting from deadbeats is never easy, Drew Hasselback, Financial Post · Jan. 24, 2011 | Last Updated: Jan. 25, 2011 10:09 AM ET
Set deadlines
Too often, clients in arrears will promise to pay, but won’t set a date by which that payment should arrive. You have to have a drop-dead date, Mr. Lebovic says. This is something that can be spelled out in the follow up letters you write that lock down the details of your conversations.
Be polite
It sounds trite, especially since you might be pretty frustrated with some of these people after a while.
“It doesn’t mean that I’m a cream puff, but I believe in treating debtors like they’re human beings, and speaking to them like they’re human beings,” Mr. Lebovic says. “No debtor today, I think, is going to be moved to pay a bill because somebody on the other end of the line yells at him.”
Also, if the matter is destined for small claims court, you don’t want to be cast as a bully. Whether you behaved civilly and reasonably can affect the way a small claims court judge views your case.
http://www.nationalpost.com/todays-paper/Collecting+from+deadbeats+never+easy/4154110/story.html
Small Business News
Plans by a small business group to encourage consumers to use cash instead of credit cards hit a snag when it became unclear whether doing so would violate credit card company rules.
The Canadian Federation of Independent Business had planned to take its war with the credit card industry to a new level after Christmas by arming its 107,000 members with signs and cards that encourage consumers to reach for cash or debit.
Under the headline “Would you consider paying with cash or debit?” the promotional materials would say: “Most Canadians are unaware that small businesses pay huge fees to the banks and credit card companies to process credit card transactions. Paying with cash or by Interac helps independent firms keep prices down for us all.”
Small business wants consumers to use cash
However, the plan hit a snag after Canada’s competition watchdog said Wednesday that one of the rules used by Visa and MasterCard to restrict competition prohibits merchants from encouraging consumers to reach for cash or debit.
The federal competition bureau said the card companies use “restrictive” and “anti-competitive rules” that it said contributed to high fees for merchants who accept credit cards.
What did you use this holiday season?
Should You Represent Yourself In Court?
Small Business News
Canadian individuals and businesses owe $25-billion in overdue taxes to the federal government, newly released figures show — enough to pay off more than half the national deficit if the money were collected.
The tab for overdue taxes has been climbing in recent years, according to the Canada Revenue Agency. The $25-billion figure, the amount owing as of March 31, represents an increase of more than 35% over the total owing five years ago, when overdue taxes stood at $18.5-billion.
Read more: http://www.nationalpost.com/Canadians+unpaid+bill+grows+billion/3967319/story.html#ixzz18DqZhvaC
