CorporateCollections.com

When the tech bubble began to burst eight years ago, it quickly was apparent that those companies who pursued their receivables quickly and skillfully could and did recover monies owed to them. Those who waited, hoping for a turnaround, lost out.

The climate for commercial debt collection remains fairly robust, although I often encounter debts owed by previously healthy companies who are simply not collecting their own receivables which in turn, makes it difficult for them to meet their payables. The trickle down effect is clear.

Now more than anytime over the last eight years it is important to pursue monies owed, quickly and skillfully. Failure could be catastrophic.

06-24-2008 05:26:16PM - Permalink - Post Reply - Read Comments [0]

The debt collection business cranks up in an economic downturn, and as a result is a bellwether for future events. At Woodworth & Frisella we are experiencing a mild up-tick in business, which appears to be gaining steam on a daily basis. More telling is the fact that most failures to pay are not about disputes but about cash flow.

In these times it is important to remember that whoever gets there first often is the one who gets paid. This is not the time to sit on your accounts receivable.

01-25-2008 05:55:16PM - Permalink - Post Reply - Read Comments [0]

Last night I was honored to Judge the semi-final round of the negotiation contest at my alma mater law school. The contest was among 1L's, who have been in law school for less than 2 months and they handled themselves beautifully. I judged two competitions, and both were very close contests. My thanks to the students at Boston College Law School for inviting me.

I've been thinking a lot about negotiation lately, partly in preparation for this competition, partly because I just read Gerald Williams' great article in the Commercial Law League Magazine on the same subject.

I have always thought of negotiation as more romance than table pounding. It's easier to make a deal with someone you like, rather than someone you loathe. So from the outset of any case, I actively seek common ground with my "opponent". Be it the CEO of the company, their talented lawyer, or the guy working part time in accounts payable, I look for something unrelated to banter about. It doesn't hurt that I'm a news junkie and so more often I just scan my brain for something happening where the other person is located, and we are off and running.

Along the way I've found that there are some pretty interesting people out there who owe my clients money. People can tell when you are genuinely interested, and I am. I learn something new from nearly everyone I deal with. It's one of the best parts of my job.

It's important to understand my adversary and his business - and in that process I'm often able to create a bond which results in an agreement to work together to find a solution to the problem. That is the beginning of any negotiation; it points both parties in the same direction - that of getting the problem solved, and it is more often than not, a huge leap forward in the process.

10-03-2007 02:03:23PM - Permalink - Post Reply - Read Comments [0]

I’ve been trying to figure out how to distinguish my law firm from all the others you can choose from to collect your unpaid receivables. My best answer may be in the following story…

On a recent Saturday morning, while cleaning up some things in my office, I got a call from a man in Germany who wanted me to collect a debt in Oregon for his company. Curious, I asked where he got my name. “Joe Smith recommended you.”

We talked some more about what he needed done, and made arrangements for him to send me the file. I asked him what Joe said that inspired him to call me in Massachusetts from Germany about a case in Oregon.

Joe was the accounts payable guy for a company against which I had collected a debt. He said that Joe told him that last year he was charged with managing the accounts payable for a company that had a mountain of debt. As a morass of collectors, lawyers, and angry accounts receivable people dogged him daily, I was the one person he remembered and the first person he paid when money came in.

Thrilled at this response, I asked if Joe had told the caller why he found my approach compelling enough to put my claim at the top of the pile.

“You did exactly what you said you would do. If you said you would call Tuesday, you called Tuesday. No one else did. So when the money came in you got paid first.”

Collecting overdue debt often requires romance, sometimes requires hardball, but always requires vigilance. Early action is critically important. According to the Commercial Law League of America, when an account receivable is past due, even after only three months, the probability of collection drops to 72.3%. After six months, your chances of collection decrease to 56.1%. At one year past due, there is a mere 29.7% chance that the delinquent account will be collected.

It is that balance between vigilance, early action, romance, and – when called for – hardball that my firm offers. Excellence and judgment in all these areas is what differentiates our work. I’d like the opportunity to show you what my law firm can do. Contact me so we can get started!

08-22-2007 01:28:32PM - Permalink - Post Reply - Read Comments [0]

Last Saturday night (May 20,2006) I named Amy "partner" and changed the name of our lawfirm to Woodworth & Frisella.

I've been planning to make Amy partner since things settled down last October. I decided to do it at a party for friends and clients, which she was in on, but oblivious to the real reason for the party. The party was a great success, and Amy was (thankfully) thrilled with the promotion.

Amy is a graduate of Northeastern law school, worked for Senator Cheryl Jacques before coming to The Law Office of Jane T. Woodworth.

She is a brilliant lawyer with a steel trap mind and a wonderful sense of humor.

Congratulations Amy!

05-24-2006 05:00:43PM - Permalink - Post Reply - Read Comments [0]