Can business credit improve during a global crisis?

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Qualifying for creditworthiness is incredibly important for small businesses. The past months have proven to be challenging for business owners, with governments implementing lockdown measures and industries putting a halt to selected operations. Keeping a small business afloat during uncertain times can be a tall order; what more improving its credit rating?

Business credit rating can improve even during a global crisis, notes collections agency Brennan & Clark LLC. Monitoring a business credit profile is something every small business owner must do with diligence. While easy to do and free of charge, many forget to forego this step. Businesses whose owners understand their credit rating are 41% more likely to be granted loans when they apply. Those with good business credit profile comprehension have an increased likelihood of expanding their venture.

Although credit has always been a huge deal, it will become tighter following global crises. Lenders may take a while before they re-enter the market. Consider payment terms from suppliers. These may not be loans, but these influence a small business’s credit and strengthen credit profile. Discount terms from suppliers can help keep paychecks regular even in tough times.

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Brennan & Clark LLC reminds everyone only to use the credit they need for making payments to agreed-upon terms accordingly. The option to borrow as much as one can during challenging times can be tempting. While some fall prey to the temptation, remember that the only good reasons to borrow money are to increase ROI, build business value, and maintain viability.

Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. Its expertise helps companies achieve well-defined goals for their collection process, evaluate all internal procedures, implement improvements, and guarantee better results in collections. Head over to this page to know more about Brennan & Clark LLC.

Common debt traps for business

A debt trap is a financial ploy that is designed to keep businesses in debt for them to continuously make money off people or establishments that are unable to clear their debt. Debt traps are often set by financial institutions like lenders who structure their business in such a way that they can exploit loopholes in consumer credit laws to avoid regulation. According to Brennan & Clark LLC, these establishments are technically legal, but they do pose a high chance of keeping people in debt due to their practices. Here are some of the most common debt traps for businesses.

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Payday loans: Whether you’re a single parent trying to make ends meet or the owner of a small business, payday loans are notorious for keeping their clients in debt. They do this by first charging an establishment fee of up to 20% and a monthly fee of 4% of the amount borrowed. So if you borrowed $1,000 from a payday loan creditor, they expect you to pay $1,240 within the next month.

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Blackmail security: It’s often policy for some creditors to have their lenders sign off on an asset to guarantee a loan. Usually, the items that are put up are more expensive than the loan itself so that when a loan defaults, the creditor can still make money off the asset. But according to Brennan & Clark, dubious security firms choose cheaper assets, but assets that are vital to your business. Besides this, they also have a steep minimum loan amount that could go as high as $2,000.

Brennan & Clark LLC is a business collections firm with over 30 years of experience. It maintains membership in the Commercial Collection Agencies of America. To read more about finance, visit this blog.

A lot of companies struggle with clients who are often late when it comes to making payments. This financial conundrum can effectively ruin a company’s cash flow and cripple operations. Still, it may be hard to believe that some companies find it hard to pay within the date marked on contracts. According to professional debt collectors at Brennan & Clark LLC, there are several reasons why clients fail to make their payments on time.

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One of the biggest reasons why clients become delinquent on their debt is because of multiple debts and prioritization. If a company is currently paying off multiple debts, it could prioritize bigger debts rather than take on all of them at the same time. It’s a well-known repayment strategy that is effective when it comes to eliminating debt. However, if your company is at the end of the pecking order, it might take a while before they get to pay off their debt to your company.

Another reason why clients turn delinquent is the structure of their finance department. Multinational companies, as well as other large corporations, are known for finance and accounting departments having their own processes. This could mean that the payment for your services is still being fulfilled by a department separate from the one you were in contract with.

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The third reason why clients can’t pay on time falls on the company that owes money not having flexible payment options. Some companies only accept checks or bank transfers. According to expert collectors at Brennan & Clark LLC, some clients are more than willing to make cash payments or go through other means of credit transfer just to settle their bill.

Brennan & Clark LLC is a business collections firm with over 30 years of experience. Based in Villa Park, Illinois, the agency was founded in 1980. It maintains membership in the Commercial Collection Agency Association, the National Security of Premium Insurance Auditors, the Insurance Accounting and Systems Association, and the International Association of Commercial Collectors. To know more about the company, visit this website.

Sound accounting advice for startups

Any owner of a startup understands his or her personal liability for the business. But even with so many operating details demanding attention, one of the most important considerations is financial health, advises business collections professional Brennan & Clark LLC.

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With the following tips, an entrepreneur can develop smart accounting tactics to better navigate a small business’ initial stages.

Firstly, don’t be afraid to use an accounting software. You’ve to have a good idea of where you stand financially, at all times. And the best way to ensure such is by using a certified accounting software. We suggest going for a cloud-based one, so you can access your financial information even while in transit or remotely.

Go for payment incentives. You can mark up your goods and services, giving solid discounts to clients who pay early or opt for subscription plans. Remember that people will be more willing to spend if they feel that they are getting more for their money. Moreover, incentives and rewards boost consumer loyalty.

It would be wise to let someone else handle your finances. Hire an accounting firm or a contract money manager and pass on to them the money management duties. They will not only have the needed experience in handling finances but can offer likewise offer you advice on saving and warn you of potential financial hurdles. This will free up precious time which you should use to focus on the core business and growth your startup.

Finally, keep in mind that borrowing money is not necessarily a sign of weakness, Brennan & Clark adds. Consider financing options and avoid possible startup burnout as you try to raise too much too fast. Many startups forego key growth opportunities because they are too caught up in raising the money first. You don’t have to rely solely on incoming cash; there are smart financing choices out there, from crowdfunding to bank loans.

Brennan & Clark is a business collections agency that provides customized receivables support solutions that help businesses eliminate credit losses. The firm is a founding member of Commercial Collection Agencies of America. Visit this blog for related posts.

How to politely remind clients of their unpaid bills

Businesses have to know how to properly collect debt from their clients. Communications can be a tricky subject, especially for those who aren’t the best when it comes to words and verbal communication. And with a topic as sensitive as debt or credit, caution must be taken so as not to damage the relationship between client and creditor or supplier.

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According to the experts at Brennan & Clark LLC, a debt collection agency, one has to be gentle yet stern when it comes to collection calls. If your client is running delinquent, here are polite ways to remind them of their unpaid bills.

The best way out of this situation is to not be there in the first place. If the credit to be paid is rather large, you could send an email a week before the due date to remind the company of their bill. Here, you can also include their various payment options. The more options your company has when it comes to accepting payments, the easier it would be for clients to repay their debt.

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On the due date, inform your client that the payment has to be made that day. To help them in this situation, it’s always better to add all the details necessary to the message. This includes the invoice number and the date it was sent, the total amount, as well as payment options. You should also end the message with a note soliciting clarifications or further questions.

After the due date has passed and no payments have been received, continue sending collection notices. According to Brennan & Clark LLC, your tone needs to be firm during this stage. You should also attach a copy of the invoice, as it is possible for the invoice to be accidentally lost or deleted, especially if it is a digital one.

A business collections firm based in Villa Park, Illinois,Brennan & Clark LLC has been a leader in the industry for over 30 years. For more reads on commercial debt collection, visit this website.

Eight ways to get clients pay accounts on time

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It’s incredibly important for a business, regardless of its size, to keep track of cash flow. If according to sales the business is doing very well, yet cash flow does not reflect this, then the disparity could be related to invoice problems.

Outstanding debt by clients needs to be paid to keep the business running. To make this possible, make invoicing a priority. Businesses should send invoices to their clients at the soonest time to get paid at the earliest date.

Avoid leaving out specific details in the invoice. Having been in business for over thirty years, Brennan & Clark LLC recommends businesses to ask their consumers what they expect to be on their invoices.

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In all transactions, be courteous. Saying “thank you” reflects a business’ gratitude and appreciation toward the customer. According to business experts, politeness should be reflected in invoicing. Structure repeated billing, preferably on a monthly basis, to remind clients of their balance. Offer online payment options, making it as easy as possible for the customers to pay their bills.

Develop payment terms including late fees. Setting this up from the beginning lets the client know what they are in for. Brennan & Clark LLC suggests businesses to design payment plans adjusted to the capabilities of their customer base.

Monitor invoices and customers to get a good view of the payments received. Request for upfront payments, then proceed to ask for smaller payments, instead of demanding a lump sum. Not only will this keep the cash flowing throughout the fulfillment of the project, it also allows customers to make smaller payments on time.

Brennan & Clark LLC is a collections agency based in Villa Park, Illinois. A leader in the industry, the firm has a management staff with over 150 years of collective experience. Visit this blog for more updates on business collections.

Collections 101: The significance of receivables analysis

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Any money owed by clients and customers to businesses and debtors is termed accounts receivable. Managing this properly is an important aspect of business, as it affects the overall health of a company.


There are many things accounts receivable can do for a business. It is an integral part in helping a company increase its cash flow. When a business needs goods and services to be available on credit, accounts receivable makes it all the more possible. It promotes goodwill between customers and businesses, and establishes faith and trust in accounts receivable policies. Simply put, having accounts receivable in a business translates to better sales and higher growth rate.

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So, where does accounts receivable money go? It helps a company with a lot of administrative work, such as the regular payment of employees’ salaries and all the bills needed to keep the business operations going. What’s left from it is often called current assets, as it goes to inventories, securities, prepayment, and cash.


It’s crucial that a company have people analyze accounts receivable. Since money is the lifeblood of the business, it should be collected regularly and on time. Along with this analysis is a constant review of policies to ensure that they are up to date (if need be) and have no room for misunderstanding.


Brennan & Clark, LLC is a business collections firm that has been in the industry for more than 30 years. With 150 years of collective experience, its expertise aids companies in achieving well-defined goals for their collection process, evaluating all internal procedures, implementing improvements, and guaranteeing better results on collections. To know more about their services, visit this website.

More benefits of hiring a collection agency

Business owners often have a lot of work to manage and little time to devote to collecting payments and debts from customers. Sometimes the process of collecting can be troublesome, especially as the debt gets older. This is where a good collection agency comes in, relieving unnecessary stress and allowing managers to focus on the business. 

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For one, a good collection agency will offer legal protection. It knows that well-informed customers will not think twice and sue businesses if their rights have been violated, so they know the ins and outs of both federal collection laws and the laws that govern the state in which the agency holds a license. They will likewise prepare a comprehensive documentation that can be used as crucial evidence if the occasion for a legal recourse arises. 

Success in recovering debts is the forte of a collection agency, so ensure that you get one with a good track record and tons of experience. If you are focused on running your business, an agency’s primary job is to focus to collect debts. It will know the best techniques to legally make debtors to pay, including how non-payment can adversely affect a debtor’s credit score for up to seven years. 

Finally, a good collection agency will give you much flexibility, offering programs that fit with your business model and suit your business needs. Some of them will offer a flat or fixed fee, while others will require a commission for successfully recovered amounts. There are even those which offer net returns within a few days of a company turning over accounts for collection. This way, the collection agency absorbs the risks and the client gets the cash immediately. 

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Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. Its expertise helps companies achieve well-defined goals for their collection process, evaluate all internal procedures, implement improvements, and guarantee better results on collections. For more reads on debt collection, drop by this blog.