Businesses can file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy, based upon the business’s debt levels and financial situations. We’ll look at the various types of business bankruptcies and if/how you can move forward with this customer in the future.

The bankruptcy process starts with a petition filed by, or on behalf of, the business. Bankruptcy doesn’t mean they absolutely won’t survive; in fact, some businesses revitalize and save themselves by taking such action. Just ask General Motors, Marvel, Delta, and Starbucks. They all filed bankruptcy previously and are thriving in today’s economy! We recommend educating your management team on the risks vs rewards available in recouping financial losses from companies that have declared bankruptcy. Also, we suggest contacting your attorney to ensure all paperwork is filed on time for the debt owed to you.

Many organizations practice the motto "the customer is always right" -- but is the customer always right?

This is a topic that we could all stand to talk about more often. The customer isn't always right and allowing them to hold the payment(s) will create a bigger issue. Yes, it's important the customer is heard and their dispute is researched. However, the phrase "I don't agree with the charges," is the number one delay tactic that prevents the collector from doing their job.

Questions to ask yourself:

Did the customer wait for you to call them? Or did they proactively notify you? Did the customer contact you prior to the bill being due? Did they make mention to their sales representative in text, e-mail, and/or phone that they didn't agree with the charges or invoice? or did they wait for the invoice to come past due and receive your call to notify you that a problem existed?

Founder and CEO Katie Keich started out working in the trucking and logistics industry right out of high school, beginning in administration and working her way up until she was in charge of credit and collections.

Leveraging decades of logistics industry experience, we discuss dismantling stereotypes and the necessity of education with CEO of Full Advantage, LLC, Katie Keich

Full Advantage Founder and CEO, Katie Keich, will speak at the Women in Trucking Association’s Accelerate Conference in Dallas, Texas next month. The conference, which is presented as a unique event with a critical mission, will be held in person from November 13-16, 2022, and virtually from December 6-7. Thought leaders and subject matter experts in the fields of transportation and supply chain will present on focus areas including Leadership, Professional Development, HR/ Talent Management, Operations, and Sales & Marketing. More than 800 professionals from across the globe are already registered and they include transportation decision makers in companies ranging from motor carriers and 3PLs to manufacturers, retailers, truck driving schools, financial and insurance providers, and health & fitness services.

FreightMango — a digital freight container marketplace — has selected and successfully launched with Full Advantage to streamline back-office accounting processes and scale faster.

For nearly 20 years I have truly seen and heard it all when it comes to bad debt in a company. Most people think that 3-5% of bad debt relative to their revenue, is their "magic number". What I can confidently tell you is our company historically knows how to get your bad debt under 1%.

This is one of those simple tweaks in your process today that can improve your customer onboarding experience and cash flow.

If you are responsible for managing cash, you probably have already forecasted a decrease in payments.