Late Payment Collection Alternatives: Repayment Agreements and Beyond

• Overview

Learn how to handle delinquent accounts and what alternative methods you can utilize to collect.

The turmoil in the credit market has siphoned available credit from many corporate customers' companies looking for new and continued financing to meet their operations. Now lenders are either charging very high borrowing costs, or refraining from lending at all. For many corporate customers, the reality of tight credit already is limiting daily operational needs, leaving many vendors to these corporate customers with delinquent accounts. Can your customer pay? What are your alternatives in dealing with the delinquent account?

Authors

Agenda

Is the Account Delinquent?

• Vendor's and Customer's View

• Industry Information on Delinquent Customer

• Opportunities to Revisit A/R Portfolio and Credit Policies

Traditional Credit Management Approach (Gatekeeper) vs. Modern Approach (Relationship Preserver) With Delinquent Customer

• Who Has the Leverage in the Trade Relationship?

• Punitive or Accommodate Response?

• The Voice of the Sale's Team

• Reconciling the Account Under Traditional and Modern Credit Approaches

• Robinson Patman Antitrust Considerations

What Assets Are Available for Payment?

• Likelihood and Effect of Bankruptcy

Document Retention

• Emails

• Litigation Holds

Preserving the Delinquent Customer Through Contract and Credit Enhancements

• Credit Application T&C's

• Personal Guarantees

• Additional Customer Financial Information

• Credit Insurance

• Alternative Payment Methods

Dealing With Past Due Invoices, yet Maintaining Sales

• Using a Repayment Agreement to Fix the Debt

• Fixing Indebtedness and Waiving Claims

• Collateral Pledge

• Dealing With a Customer's Insolvency

• How Arbitration and Mediation Operate as a Means to Collect the Delinquent Account

Looking to the Court System to Collect a Delinquent Account

• Jurisdiction

• Prejudgment Remedies

• Timing

• Enforcing a Judgment Through a Writ of Execution

Alternative Sources of Collection

• Shareholders

• Promoters

• Guarantors

• Successor Corporations