Procedures
 

Collections Process
Past experience shows that once collection efforts commence, debtors immediately recognize the presence of a third party with one primary objective -- complete and amicable resolution of the past due balance. However, results are not achieved in most cases.

We do not believe in the generally accepted practice that each account, based on balance, is allowed a specific number of letters and phone calls followed by a recommendation for litigation. Conversely, we require that repeated direct contact and investigative techniques be employed by all in-house personnel. Whenever possible or necessary, efforts in the debtors locale are made to personally secure checks or results. Most debtors pay past due balances based on available cash flow and the pressure applied to pay the debt. As troubled companies do not usually have the cash reserves to pay everyone, they historically will pay select vendors who have been elevated to the top of their payables list as a result of pressure.

We believe that continuous pressure and professional pursuit on any and all balances is the key to effective collections. However, early identification and timely placement of accounts also plays a major role in the collectibility of aged receivables as cash declines in a failing company.

Litigation

In the event litigation becomes necessary, Williams, Babbit, & Weisman is prepared to assist in the forwarding process. Court costs and suit fees vary slightly and are dependent upon venue, case conditions, and balances. Although we do not have corporate counsel on the premises, we routinely forward most cases, for geographical purposes, to attorneys who are members of the Commercial Law League of America. The process of forwarding activates a $1,000,000.00 bond for your protection. The only exception to this policy would involve geographical areas that are extremely remote, together with certain international situations.