The collection industry in the United States is a vast one. After all, over 30 million Americans and businesses owe money to someone somewhere. It is important that people know some key terms when dealing with, or hiring a debt collection agency. Here is the first part of the key terms series that people might need to know about collections.
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| Image source: bankruptcy.uslegal.com |
Accounts receivable is the money clients (whether people or companies) owe to another company for being provided goods or services, or both. It is a line of credit, or an IOU.
Arbitration is any informal hearing called for a dispute.
Balance sheets are financial statements containing the assets and liabilities, as well as the shareholders’ equity at a given time.
Bankruptcy is declared by an individual or a company when they are no longer able to pay their debts.
Cash flow is the money that goes in or out of an account in a period of time.
Co-debtor is one of two (or more) entities who are liable for the same debt.
Credit limit is the maximum amount of credit that any financial institution can give its customers or clients.
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| Image source: accountingweb.com |
Customer relationship management, or CRM is the strategy used by many businesses to help customers get what they pay for.
Income statement is the financial statement that shows the net revenue, and how it becomes net income. This is also considered a profit and loss statement.
Brennan & Clark LLC is an agency that specializes in business collections. Learn more about them and the services they offer by visiting this blog.
