September 2001

Delinquent accounts and collection costs are a reality for any business that allows consumers to purchase on credit. Extending credit increases gross sales, but also carries an element of risk. Managing accounts wisely and maintaining effective controls will help to reduce the losses that are often associated with credit granting. According to Jon Dunn, president of the American Collectors Association (ACA) and owner of Diversified Account Systems of Georgia, there are some basic rules a credit grantor should follow when extending credit in order to avoid collection problems in the future. "Consumer payment trends are quickly revealed when these fundamental procedures become a part of your daily routine," Dunn said.

ACA Offers Advice for Cutting Collection Costs

ACA offers the following suggestions for credit grantors to keep in mind when extending credit:

• Be sure there is a clear understanding of the terms of the credit transaction by both parties when it is initiated. Results of this mistake are often costly to overcome.
• Conduct a diligent follow-up of every account. Decide what techniques best fit your needs.
• Keep accurate and up-to-date records, including consumer background information, account history and all recent account activity.
• Do a periodic age analysis of every outstanding account. Include the name, amount owed and the age of the account.
• Identify bad debts early and act promptly and decisively. The more time that passes, the less likely consumers are to pay.
• Create and follow a collection schedule. Develop a schedule and follow each step fully before moving on to the next.
• Consult a professional collection service. Utilizing a collection service can save you time and money, and will often have more effective results.
• Do not place an account with more than one collection service. You can avoid confusion by keeping the account with only one agency.

Let Us Introduce Ourselves

Should you have a new employee come on board who is handling your accounts receivable, or perhaps someone has transferred to that position, let us know. We would like the opportunity to introduce ourselves.

Often times it is necessary for us to send information to that person or clarify the process in which accounts are sent over. Our goal is to provide and receive consistent feedback so that our relationship continues to grow.

Kate Melasi
Client Consultant

Dissatisfied Workers A Multi-Billion Dollar Industry

Business owners know that employee productivity runs from highly productive to mediocre to poor. It's a fact of life. And a potentially costly one.

While workers who are dissatisfied in their jobs ultimately affect a company's bottom line, you can reduce their numbers with a dedicated effort, producing an economic boost for your company.

A recent Gallup Q12 survey revels that only 26 percent of U.S. workers 18 or older are extremely satisfied with their work, 55 percent moderately satisfied, and 19 percent are dissatisfied by their work. That 19 percent represent 24.7 million U.S. workers who are not committed to their jobs, are working below their potential and don't plan to be with the company in a year. They also miss more days of work and report having high negative stress.

• I know what is expected of me at work.
• I have the materials and equipment I need to do my work right.
• At work, I have the opportunity to do what I do best every day.
• In the last seven days, I have received recognition and praise for doing good work.
• My supervisor, or someone at work, seems to care about me as a person.
• There is someone at work who encourages my development.
• At work, my opinions seem to count.
• The mission/purpose of my company makes me feel my job is important.
• My associates (fellow employees) are committed to doing quality work.
• I have a best friend at work.
• In the last six months, someone at work has talked to me about my progress.
• This last year, I have had opportunities at work to learn and grow.

What kind of workplace are you?

Workshops

Successful Collection Skills II October 19, 2001, 8:30am - 12:30pm Holiday Inn, 3600 Plymouth Rd., Ann Arbor, (734) 769-9800

Collector Workshop

• Re-examining and re-organizing your in-house office policies and procedures
• How to get your collectors to believe in and follow your office policies andprocedures
• How to make your collectors more efficient and effective in their collections
• Discussion of issues and cases which affect specific collection problems
• What's involved when your account goes to third-party collection litigation
• Time is reserved for your special and unique questions to be answered by collection professionals and legal council

Who should attend?

• Supervisors/Managers who want to hone their collection technique and provide new ideas for A/R staff
• Collector's who have completed our Collection Skills I and experienced A/R representatives

Fast seminar facts: _ $75.00 per person _ Workbook/instructional manual included _ To register, mail or fax in form to right

SUCCESSFUL COLLECTION SKILLS II

Gain the collection skills you need - and want - to have A half-day seminar full of important tips and techniques People don't care how much you know, until they know how much you . . . collect Let us help you create a windfall this autumn. Our seminars can help increase your cash-flow!

Organization Credit Bureau, Inc. offices will be closed Saturday, September 1 and Monday, September 3 for the Labor Day holiday. All offices will reopen Tuesday, September 4, 2001 for regular office hours.

High Payment of the Month

High payment honors go to Julie Bame in our Ann Arbor office this month. She helped bring in a $3,666.00 payment for an Ann Arbor apartment complex!! Congratulations Julie!!

Our Offices

Welcome to Our New Clients

• Vivian Butler
  
• Dr. Swartz
  
• Dr. Anterasian
  
• Dr. Sanjui Upadhyay
  
• Family Counseling Center
  
• Belleville Healthcare
  
• Burger & Associates
  
• Peter Cornell
  
• North Oakland Fire Authority
  
• McDonalds Towing
  
• Paul's Collision & Towning
  
• J.D. Laundra Foundations
  
• Dr. Gregory Franklin
  
• U-Store Mini Storage of Holly
  
• Jaafer Sweets
  
• Baker College Auburn Hills
  
• Reeve's Wheel Alignment, Inc.
  
• Brighton Hospital
  
• Intervention Associates
  
• Employment Research Corp
  
• Holt & Mason Towing
  
• Huron Gastroenterology
  
• Back to Nature
  
• Deehl Chiropractic
  
• Richard B. Morrison, DDS
  
• Dr. Bruce G. Ryding, DDS
  
• Mill Creek Townhouses

Upcoming Events

Collection Skills I-Ann Arbor
September 21, 2001

Collection Skills II-Ann Arbor
October 19, 2001

Ann Arbor Blues & Jazz Festival September 6 - 9, 2001
Lineup: Abbey Lincoln, Shemekia Copeland, Maceo Parker and more! Contact our sales department for ticket information.

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Ann Arbor Credit Bureau, Inc.
311 N. Main   Ann Arbor, Michigan   48104
800.710.4821     734.665.6173
info@a2cb.com