Business loan mistakes your company should avoid

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Small and medium businesses are often at risk of bankruptcy due to cash flow problems. Lack of customers or customers who fail to make timely payments can easily throw a wrench into your well-functioning cash flow system and ruin everything. This is why some businesses take loans to keep their business running. But according to Brennan and Clark, not all loans are good for your company. Here are some business loan mistakes you need to avoid.

High finance charges: The easier to get your loan approved, the more difficult it is to settle it. This is often the case of loans with high-interest rates. At the end of each payment period, your money goes to paying the interest rather than paying off the debt. If your business is still struggling while you’re trying to pay off a loan, these high finance charges could bleed your business dry.

Luxury purchases: There are times when business owners are confident in their upcoming sales that they go and make credit purchases to get luxury items for the workplace. And while the intention might be good, putting your cash flow at risk for a new office toy might not be worth it. Things can go south real quick in real life.

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Expanding too soon: A lot of entrepreneurs tend to become aggressive when they have the momentum. When things are looking great, they might want to capitalize on their win by taking a new loan to expand operations. According to finance experts at Brennan and Clark, doing so and failing could end up affecting your successful business. In fact, the losses incurred from the other business could end up taking down the first one with it.

Brennan and Clark is a business collections firm that has been in the business for over 30 years. The firm’s management team has been together for the past 20 years, and the combined experience and expertise of its staff enables the company to guarantee higher average recovery rates than the industry average. For more reads on debt settlement and finance, visit this page.

Start the year right with a debt management plan

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Setting financial goals for the new year is a good move for those who want to become better handlers of their income. According to the experts at Brennan & Clark, while paying debts in full might take some time, this will certainly ease a person's anxiety when it comes to money. Check out this guide for creating a debt management plan.

Assess debts: Before coming up with a plan, it's essential to know one's financial standing. This will dictate other important details of the plan, such as the length of time and which ones to finish first. Making a list of all the debts along with one's income will enable a person to plan accordingly, preventing the feeling of being overwhelmed when it comes to making the payment.

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Create a detailed and time-bound plan: To accomplish a goal, it must be realistic and time-bound. This is especially true when it comes to money matters. When drafting a debt management plan, trying to pay off everything all at once can be counterproductive. Instead, one should do it step by step. Taking note of payment days and the amount to be paid will enable a person to prepare and adjust, if necessary.

Choose which debts to focus on: The team at Brennan & Clark suggests listing debts and prioritizing which ones to finish first. One can choose to pay the account with the lowest interest or the one with the highest rates. Starting from the lowest allows a person to pay other debts faster. On the other hand, paying the highest one first will allow a person to finish a debt that might incur more costs in the future. To choose which debt to focus on, it might help to consider a person's current budget and expenditures while planning.

Brennan & Clark is a business collections firm that has been operating for over 30 years. The combined experience and expertise of its staff enables the company to guarantee higher recovery rates than the industry average. For similar reads, visit this blog.

Global debt collection trends to keep track in 2020

Debt collection is a practice regarded older than the history of making money. As early as the barter system, the practice of debt collection has already existed. The debt collection industry has evolved since employing new ways of doing the practice.

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In 2020, consumer debt will continue to increase with credit card debt, auto loans, and student loans leading the trend. Debt collection methods will change through digitization since in-house collections, aggressive calling, and sending invoices have all been proven ineffective ways of collecting debt. Brennan & Clark notes that digitization of methods can improve the customer experience as technology-based debt collection will result in upgraded client engagement. As the prediction of artificial intelligence makes for better forecast numbers, analysis of client communication preferences and the level of trailing each client will require are ensured.

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Heavy reliance on technology will become more prevalent in 2020 as digitized methods will prove to be much better than previous techniques. A more preemptive manner will replace aggressive phone calls to collecting as a result of flexible payment options—a win-win situation for both the client and the creditor.

Brennan & Clark notes that mortgage remains among the top contributors to the nation’s overall debt scene as a single household has $150,000 in debt as an average. Medical bills aren’t as high as credit card loans, student loans, and auto loans, with an average citizen owing $597 in medical expenses. While debt collection for these expenses will be done in ways different than before, the debt scenario stays on a high level like the previous years.

Brennan & Clark is a business collections agency that works with clients in formulating an effective plan that augments the collections strategies that are already in place. For more updates like this, visit this page.

What happens to a company with a bad credit score?

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Most people are aware of what happens to a person with a bad credit score. Financial institutions could see someone with bad credit score as a liability. If you have a bad credit score, it will be unlikely for banks or other creditors to offer you a line of credit. Besides this, it can also affect your purchasing power. You may find it difficult to make large purchases like automobiles or properties if your credit score is terrible.


According to the finance experts at Brennan & Clark, a trusted debt collection agency, companies can also have a bad credit score. What does happen when a company has a bad credit score? Is it the same as that of an individual?

The answer is it can be worse for companies with bad credit rating. And like personal credit, a business can get a bad rating when it starts failing to make payments regularly. Perhaps the company has other payment obligations as well, and it chooses to use its line of credit to pay off other debts only to have its debts consolidated in its business line of credit.

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A business with a bad credit score is viewed differently by other firms. For example, utility companies would ask clients with bad credit ratings for a deposit before rendering any services. As for other services such as distributors, they may just outright deny the business of goods if they feel like the business won’t be able to make payments. Finance experts at Brennan & Clark believe that bad credit ratings are there to protect the users themselves from getting into debt so deep that they are unable to pay them off.

Brennan & Clark is a business collections firm that offers receivables support solutions to businesses. Through this complete program that is customized to meet the needs of every client, the firm provides assistance in evaluating and improving on a company’s collections process. Follow this Twitter account for more similar updates.

What business owners need to know about microlending

As part of upholding its stellar service to people everywhere, Brennan & Clark has shared a number of highly-informative blogs and articles on debt, credit, collections, and everything in between. On this blog, the firm focuses on microlending and what people need to know about it.

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Also known as microcredit or microfunding, microlending’s popularity skyrocketed in the ‘80s. With the subsequent boom of microenterprises in the decade (mostly run by people who didn’t have funding and needed to start over), the public’s opinion of microlending seemed to sway more towards the positive side. However, it has been questioned throughout the years.

An issue was raised on how most people who were lent money through microlending never really used or intended to use the funding for a business. Microlending affords these individuals with a brief reprieve from poverty, but also increases their expenses and deepens their debt through interest. As one critic puts it – microlending really doesn’t do poor people any favors since it inadvertently teaches them to spend more rather than save money. Ultimately, people in the lower income class don’t go above the poverty line.

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But not everyone who resorted to microlending sank deeper into debt. For some people, microlending funds were used to start small businesses (which is the ideal route, Brennan & Clark notes), thus breaking their own vicious cycle that many people fell into.

Brennan and Clark is a business collection agency that has been operating since 1980. A member of the Commercial Collection Agencies of America, the firm offers unparalleled service as well as the most comprehensive guarantee in the industry. For more information on the company, visit this website.

The importance of effective communication in debt collection

Brennan & Clark has a remarkable track record in business debt collections. This is due to factors such as well-trained collections agents and tried-and-tested methods of collecting. Another crucial part of its success in collecting business debts is communications.

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In debt collections, there is a proper way to communicate with the people and businesses who owe money. Communication is governed by rules and regulations such as those found in the Fair Debt Collection Practices Act. It is the Federal Trade Commission’s responsibility to implement these guidelines.

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The standards for communication are quite clear, as are the procedures to follow when reaching out to debtors. While Brennan & Clark have gone through many of the fine points regarding the instructions and standards used in debt collections in past blogs, the agency continues to reiterate why these instructions and standards should be followed.

The main reason following the guidelines is paramount is, so debt collectors don’t overstep their bounds. In doing so, collectors steer clear of any legal action from the debtor and are still free to continue collecting debt for their clients. If one goes through the many guidelines of debt collections, they’ll notice that most of the items pertain to the rights of the debtor, Brennan & Clark notes.

Brennan & Clark is a business collections agency providing customized receivables support solutions that help businesses eliminate credit losses. Click here for more information on the company and its services.

More tips for small businesses looking to manage financial risks

Every entrepreneur knows that proper money management is the key to achieving goals. If one is to avoid falling into financial debt while reaching company growth milestones, nothing less than a sound finance management is a must. Hereunder are some ways small business owners can best manage their money while maintaining good cash flow, courtesy of finance and credit professional Brennan & Clark.

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Keep track of expenditures: Simply establishing a process for monitoring spending will help a lot in avoiding financial risks. Watch your travel expenses and pay special attention to subscription-based services, as the rates of these may change without warning. Any abrupt changes in monthly charges should be detected, studied, and avoided if you are to maintain your profits.

Come up with budget statements: Always make it a point to prepare a budget report at the end of every fiscal year. You need a comprehensive budget guide if you are to keep your profits and not overspend. Determine the budget you’d have for the coming year while assigning certain portions to different business-related expenses. Only then will you truly able to calculate your so-called “thinking capital” for business growth.

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Open a separate bank account for your business: One of the fundamental tips in managing small business finances is having separate business and personal bank accounts. This way, you won’t be tempted to use your business credit card to buy personal luxuries. You avoid any future confusion with tracking your business income and spending by abiding by this tenet, Brennan & Clark advises.

Brennan & Clark is a business collections agency that aids entrepreneurs in eliminating credit losses. The firm has been in operation for over 30 years. More reads related to finances and credit management here.