Cash-flow is the lifeblood of every small business. Avoiding large or prolonged interruptions in that flow can be the difference between survival and failure.
Sometimes those interruptions are the result of non-paying customers, forcing you to play debt collector. This is a tough position to be in as a small business owner because it can break down friendly business relationships with your customers and be both time consuming and expensive. There are several fundamental steps that you can take such as using written contracts, keeping good records, and having regular collection practices in order to minimize the impact of non-paying customers on your cash-flow.
Using a sound written contract for every customer purchase is a big key to avoiding a drawn out collection dispute and may even be required by law. In Pennsylvania, purchases resulting from contact with a customer at their home, even if over the telephone, will require a written contract as do all home improvement transactions. A few must-have provisions in the contract are the customer’s name and address, the fee charged (with interest if not paid) for services provided, the dates of delivery or service, and a fairly specific description of the services and materials provided. The customer and spouse, if any, must also sign the contract. One very helpful item to include in the contract is authorization to debit a bank account or credit card for payment of the contract (an “auto-debit” arrangement). If auto-debit is not possible, simply having authorization to debit those accounts when the customer is behind on payments could save you time and expense in collecting the debt. Continue reading →
“The main purpose of auto insurance is protecting you and your family in the event of a tragedy not just “keeping legal”.
Money is tight today and many families are looking for ways to cut their budget without sacrificing too much. One place to avoid scrimping and saving is with insurance. Insurance may seem like an expenditure without return but it’s important to remember a major aspect of all types of insurance – especially auto insurance – is protection against the financial hardship of a catastrophe or major injury. After all, the main purpose of auto insurance is protecting you and your family in the event of a tragedy not just “keeping legal”. A major car accident is something you hope to never face but if it happens, and you are insured, the impact of the disaster is not nearly as bad and your life can be quickly back on the track.
There is more than a remote possibility that you’ll be involved in a car accident and need to use your auto insurance. Continue reading →
Due to a variety of factors, America continues to be in the midst of a home mortgage foreclosure crisis.
Thousands of people across the country have fallen behind on their mortgages and have little hope of catching up with the payments. If you are one of these people, there may be help. The Federal Government has recently implemented the “Making Home Affordable Program” to help citizens stay in their homes during these hard times. This program gives incentives to many of the nation’s larges lenders in exchange for their participation in refinancing and loan modification programs. According to the United States Department of Treasury, homeowners will likely have the best success working directly with their lenders to work out an amicable agreement. There are also legitimate companies and agencies that are willing to help homeowners for little or no fee, including the Department of Housing and Urban Development and your prepaid provider firm. Continue reading →
If you have any questions relating to job loss, and the financial issues that often occur, please contact us at 1-800-375-3089 for a free consultation.
Federal Assistance for Health Insurance Costs
The subsidy created by the American Recovery and Reinvestment Act of 2009 (ARRA) to help jobless workers afford their health insurance premiums was recently extended by Congress. The Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA“) requires many employers to offer the option to have continued group health coverage after an employee is terminated or when other qualifying events occur. Under the ARRA, the federal government provides a temporary 65% subsidy (premium reduction) of premium payments that eligible workers would need to pay to continue group health insurance. To qualify for the subsidy, workers must have been involuntarily terminated on or after September 1, 2008. The Act also gives workers who did not elect to continue health insurance coverage under COBRA extra time to make that election and receive the subsidy. Continue reading →
With unemployment high and many families struggling with their finances, debt settlement firms are aggressively advertising on the radio, television, and the Internet that they can help by “eliminating your debts”.
Debt settlement companies claim to help consumers pay settle debts by paying less than what is owed. They typically instruct consumers to pay into a special account until they save enough to make a settlement offer to creditors. But first, settlement companies grab significant fees from the account, and keep the fees even if they never settle the consumers’ debts. The fees are usually very high, ranging from 14 to 18 percent of the total debt, payable within the first half of the contract. For debts totaling $20,000 to $30,000, the fees would be from $2,800 to as much as $5,400. Continue reading →
