Creditor Remedies in Minnesota and Other States: Confessions of Judgment

A confession of judgment, also known as a cognovit note, is an important tool for creditors in a number of states.  They are powerful when they can be used, but not every state allows them. When allowed, a confession of judgment is essentially a promissory note that includes confession of judgment language. A confession of judgment allows the creditor to appear in court and easily obtain judgment against the debtor.

Collection Agency or Law Firm: Which Should I Use First?

This is a question that every credit person asks from time to time. The answer lies in understanding two factors:  the type and amount of the receivable and the strengths and capabilities of the person you hire.

Collection agencies use special software and automated phone systems to systematically make calls and send letters requesting payment. This approach can be successful particularly when the dollar amount of the receivable is low and the number of transactions high. However, there are other instances in which having a law firm handling the receivable at the outset is prudent.

Know Your Customer

There are several steps you can take to become more cost effective in cash flow management.  One of the easiest—and sometimes most  overlooked—is to know your customer, and to update their information continually. Many customers who are behind on their account habitually make promises and guarantee dates and times for payment, but regularly fail to deliver on their promises and guarantees.

To help prevent what is commonly referred to as fraud by the customer, take the following steps to know your customer: