Advice for accounts receivable
July 3, 2009
Dear Editor:Perhaps, Two Man Crew, Paragon Technology Group, Myers & Company Architectural Metals, Charles Cunniffe Architects, John Olson Builder and other enterprises making up the region’s building industry experiencing shakier balance sheet positions (“Liens reveal a cash-strapped construction industry,” Aspen Times Weekly, May 31) can use my merchant/commercial banking thinking advice: “Cut your losses faster to reposition how you improve your future accounts receivable turnover. My intelligent business advice will force your bankers to be more responsive to your conditions. I am the guy who thinks and uses definite banking terms and sees the overall banking picture more clearly than most bankers.”What I find surprising is that construction businesses and their related industry businesses do not take the practical business step after getting a lien or a court judgment by simply letting a collection agency round up their billing money. They would position themselves much better to collect their accounts receivable instead of sitting in the back of the bus.A lien or a court judgment has a better chance to be collected by a collection agency because it has the power to influence credit ratings. A lawyer may make money doing collections, but an attorney lacks the collection agency’s power.It is better to capture some of your owed money sooner than stressing yourself out over time with payment chances receding with time. So if a collection agency gets some of your sought-after money, do be happy you shared a percentage with it.Remember, it is better to use “the ratchet effect” and cut your loses as soon as possible. This even applies to trading stocks and bonds for you stock market players, too.Emzy VeazyAspen and Burbank, Calif.