Proper Finance Requires Thinking in Four Dimensions

Statistically, you should expect a certain fraction of those with whom you work to avoid payment as a matter of course.

The three main reasons people skip out on a bill are ignorance of said bill, inability to pay it, and downright underhanded business tactics which seek to suspend payment as long as humanly possible.

Since you don’t have the ability to tell by the face of things, per se, hiring a corporate debt collection agency gives you the ability to increase the statistical returns you see yearly without diminishing your public image.

If you can reap even twenty percent of the expected losses on a yearly basis, that can be expanded substantially over time.

So use the fourth dimension to your advantage: understand the risks involved in corporate business, and put under your command contingencies which can help to curtail them.

What is the Fourth Dimension?

Time – ostensibly; physicists will argue with you over that definition all day. The point is, if you’re going to get into finance, you’ve got to understand what investments are going to look like over time. You’ve got to understand things like the seven year cycle, and you’ve got to understand the difference between “good” debt, and “bad” debt.

A mortgage is “good” debt, because it demonstrates homeownership and upward mobility. A car loan is “bad” debt, because it demonstrates the opposite.

That said, what is and isn’t “good” or “bad” debt is rapidly changing in modern society. The housing market has gone through some exceptionally severe times lately, so a home mortgage isn’t what it used to be.

Though these items principally concern debt as it is involved in private lives, understanding non-corporate trends beyond the office are a great way of understanding corporate politics within the office. After all, what happens “in here” has an effect on what happens “out there”.

For example, consider the plight of a home manufacturing company that builds subdivisions. It’s possible the housing crash could have shorted them substantially, making it impossible for them to pay back a loan they owe your organization without filing for bankruptcy. The same holds true for a small company that  engages in decks construction who has trouble collecting from their customers for the materials they bought from you.

In either case,, the same group could be in financial climes that are just fine, and is merely giving you the run-around to avoid paying a bill.

It’s situations like this that eminently require the services of professional collection agents who specialize in corporate collection, like GGRInc.com.

Two Different Realms

Where the corporate world differs from the world of the individual has to do primarily with magnitude. A corporation in today’s world is kind of like a “lord” presiding over a “castle” in the world of yesteryear.

Corporate employees are the peasants. Now, if the “lord” of castle Sega owes you, the “lord” of castle Microsoft, several million dollars, the likelihood is those assets can be collected.

Gaming enthusiasts out there will recognize that Sega, who produced their last console, the Dreamcast, at the turn of the century, has moved from console production to video game production. Meanwhile, Microsoft owns the popular XBox franchise, for which Sega regularly produces games.

Perhaps Microsoft helped fund a team of Sega developers for a game that ultimately flopped, and now Sega is trying to avoid paying back that funding–which was conditional to begin with–with all their strength.

Well, Sega owed Microsoft several million dollars. You can’t just let that slide; but there’s only so much you can do to collect it.

When you get a professional agency involved, you’re more likely to recoup that loss, allowing you to finance the result in other markets/with other developers.

Mortgage Buyer Debt Collection Best Practices

As a mortgage buyer, you will literally take on the responsibilities of the mortgage holder when you buy a mortgage note. So if your focus is buying non-performing assets, you’ll have to learn the ins and outs of this investment strategy in order to experience success.

The reasons investors love buying distressed assets are the huge discounts and numerous ways to capitalize on the investment.

Since they are only paying a fraction of the price to secure the note, this type of investment is rarely at risk. If the note buyer did his or her homework, they will know ahead of time if the asset (distressed property) is worth more than the initial investment in the note.

Remember, note buyers operate based on a different set of rules when compared to those investing in real estate. Their interest in a distressed property is different than a real estate investor.

For starters, mortgage note buyers have to receive note payments. And when the note buyer stops receiving payments, they have the legal right to attempt to collect the debt once the note goes into default.

It’s at this stage of the game when a mortgage buyer would request the services of a collection agency.

The note buyer will not get to collect the entire value of the note at this point, because the collection agency will charge a percentage for their services, but getting something is certainly better than getting nothing at all.

Contact a highly respected collection agency like GGR if you find yourself in this situation.

Author Bio:

Pat Sava

Title: Super-Connector

Pat is a super-connector with Towering SEO and Youth Noise NJ who helps businesses find their audience online through outreach, partnerships, and networking. He frequently writes about the latest advancements in digital marketing and focuses his efforts on developing customized blogger outreach plans depending on the industry and competition.

Categories: Debt