Monthly Archives: June 2013

Easy Steps to Recover Debt in a Small Business

In a small business, regular cash flow is necessary to make it run successfully. Hence, collecting money from clients is also necessary, to maintain the business structure. Being the owner of a small business, you need to maintain a record of your cash flow. At the same time, you should follow certain procedures to recover your money from the debtor. Maintaining these financial strategies, can save you from facing financial loss.

However, if you are struggling for a long period to collect the debt amount, the following steps can help you out in such situations.

Steps to receive debt easily:-

You may follow some of these discussed steps to avoid financial crises:-

ü       Friendly approach – At the initial stage, it is always advisable to have a friendly approach while asking for money from the debtor. You can remind your debtor via email or phone call. Remind him or her that the due date to pay the amount has expired, and you still have not received payment. Ask them leniently on which date they will be able to pay the amount. A friendly approach is necessary, because the debtor might have forgotten the date, or have paid the amount into a wrong bank account. However, being the creditor you should maintain a record of these emails and phone calls as proof.


ü       Overdue reminder – If the debtor doesn’t respond to your phone calls or your emails, try to get in touch with someone who is involved in the debtor business. Inform them about your communications, and tell them who you are. Ask the concerned to pass your message to the debtor, and in this situation, either the debtor or someone related to him or her to respond to the creditor. Hence, you can expect a return response from them as well.


ü       Visit the debtor personally – You should give final call or email to the debtor for the final reminder. If the debtor still ignores your call or email, its time you visit him or her personally. This visit might help to know the reason for which the debtor is delaying the payment. Moreover, this approach also helps in creating a personal relationship that could be helpful for future payments.


ü       Formal letter to demand for the amount – If your repeated approach via phone calls or emails is being ignored, you can send a letter of demand to the debtor.


ü       Get in touch with a debt collector – After sending the letter you if still don’t receive any response from the debtor, it’s high time to consult with an experienced debt collector in Melbourne. A debt collector is well aware of the necessary steps that can help to entice the debtor to pay the amount.


ü       Taking legal action – The debt collector will first approach the debtor by forwarding an email. If the debtor ignores this warning, legal steps will be initiated. A legal notice will be forwarded to the debtor to pay the amount on time.

During the legal proceedings you can hire a solicitor for legal guidance. The solicitor can explain you how these legal proceedings will take place, and what legal requirements you need to fulfil. However, make sure the solicitor you choose is related to debt collection in Melbourne for proficient legal guidance.

About the author:

Gita Ricca is a financial expert and has been associated with debt collection field for over 30 years. She has written many articles and blogs related to her field of interest. In this article, she discusses easy steps to collect debt in a small business. She also tells you how debt collector in Melbourne who is aware of debt collection in Melbourne can help you to collect your money.


Regular cash flow is necessary in a small business to run it successfully. However, delays in getting money from a debtor, may affect the business structure. That’s why; in this article a few easy steps have been discussed to collect the debt from the debtor.

Tips to manage your finances during unemployment crisis

Managing your finances during a period of unemployment is critical. However the fact that you are jobless does not mean that are not in a position to manage your finances. All you need is to take effective steps towards managing the money you have.

1. Prepare a budget

During the unemployment period it is of utmost important that you prepare a budget of all the basic needs such as house rent, food etc. in this budget ensure that you cut all non-essential items from your budget such as going out for movies, buying new clothes, eating from luxurious restaurants. Ensure that you stick to the budget and buy essential items only.

2. Manage your credit

If you had borrowed money while you were employment, such as car loan, or mortgage. Visit the loan lenders and negotiate for a period of non-payment while you seriously look for another job. Avoid using a credit card during this period, if you are unable to pay the debt accumulated from credit cards, you may be rated adversely by the credit bureaus and this will affect your ability to acquire credit facilities in future. Never rely of credit cards to pay for your expenses during the unemployment period. Make a detailed review of all the debts you have such as car loans, mortgages and depending on the amount of saving you had accumulated decide whether you are in a position to pay any of these debts. If not let the lenders know of your unemployment situation.

3. Sell some of your assets

It is advised to sell some of your assets such as cars. If you have two cars, it is a good idea to consider selling one of them. If you had invested in the stock market, you can sell the shares. The money generated from the sale of such assets can be used to survive during the unemployment period.

4. Move to a smaller house

If you live in a large luxurious apartment that you pay a lot of money as house rent, it would be a good idea to move to a smaller home that you can be able to pay house rent or mortgage. Once you get another job, you can easily go back to the luxurious apartment.


5. Take advantage of the jobseekers allowance

Once you lose your job, it is a good idea to make enquiries from the jobseekers allowance office using the jsa contact number posted on the unemployment office website. You can find out if you are eligible for any allowances that are offered to the unemployed.

Managing money during unemployment is a daunting task, but it can be done. All you need is to make use of the aforementioned tips and you will be able to survive. Always remember to make job search a priority during the unemployment period. You may contact the jobseekers office using the jsa contact number and find out if you qualify for any allowances to keep you going before you get another job.

Your Options for Insolvency

The true definition of insolvency is when someone is unable to pay their debts. No one has to stay insolvent and there are a few options available to help.  The two more popular options are to get a higher paying job or get on a budget and spend less. The following are a few tips to help those who are currently insolvent.

If you’re out of options the only one that still remains is to claim bankruptcy. Claiming bankruptcy should be left as a last resort since the effects of bankruptcy can last between 7 to 10 years.

Another option for those in the UK, Wales and Scotland are IVA’s. While IVA’s can be a good alternative they can be more expensive than claiming bankruptcy. Recently another alternative has become available and that is debt relief orders. There are several requirements that must be met before anyone can apply for debt relief orders such as:

  • You cannot own any type of property or be a homeowner
  • The total amount of debt cannot be less than £15,000
  • Your total amount of assets must not be more than £300
  • Your income after typical bills and expenses less than £50
  • Live in Wales, England or the UK for the past 3 years
  • Have not applied for a DRO in last 6 years

Once you have applied for a DRO creditors must stop contacting you within that same year. Most people are usually debt free within 6 years.

There are a variety of additional options available for those that are insolvent to become debt free. You can also contact a financial advisor to help you find a solution that will best suit your needs. You can also find additional options by searching on the Internet. There you can find useful information that will help you decide which solution is best for you. All you need to do is search under “insolvency” to find websites that can guide you in becoming debt free.

If you prefer to find a financial advisor to help you through the process be sure you find one that is knowledgeable about insolvency and is experienced in finding solutions according to each individual’s needs. Every individual that is insolvent became that way due to personal circumstances. Each person’s set of circumstances is different so a financial advisor must be experienced in knowing which solution is the best one. Research each financial advisor thoroughly before making a final decision. Most financial advisors have websites where you can read more about their background and their professional experiences. Some even have a contact section where you can ask a question about insolvency free of charge. Some also have a free consultation session where you can discuss your case and ask any questions you have about insolvency as well as their rates to take your case.

Being insolvent makes it difficult to move through life and obtain what you need for a normal lifestyle. With all the options available no one has to stay that way forever.


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How to earn the most from your property

If you have a property you are not living in currently, you could rent it out and make yourself some money, either towards paying the mortgage or other living costs. There are quite a few things you need to think about before renting out, but if you are not able to live in it – perhaps you are working away temporarily – or the market for your kind of house is not currently very strong renting may be the answer. Otherwise you can always sell the property fast through an online property buyer.


People worry about Capital Gains Tax when they rent and then subsequently sell their home, but this is not a problem. If the house has genuinely been your home, there is no CGT to pay when you sell, even if you have rented it out for quite a while. The problems begin if you sell an inherited property after renting it out so you would need to work out how much of the rental income you would lose to tax – this is quite a complicated issue, so you may need to take professional advice, because there are time limits and all kinds of other clauses which change from time to time.


If your property is in a tourist location, you may want to consider renting it out as a holiday let. There are pros and cons to this method of making money from your property so you would need to look at your own circumstances before deciding what to do. One of the major pros of renting as a holiday property is that you don’t have to worry about contracts and length of tenure – by definition the property is let in blocks of one or two weeks or even less. You could also let it as a very short let in the off season, but with holiday rentals per week often equalling or exceeding a monthly rental long term, you may not need to. A downside is that you will have costs – gardener, cleaners and agency – but these are built in to the rental price so should not put you off. It also makes selling quicker if you don’t need to remove a tenant.


If you need to make money from a property you are not living in, the best way is to let it room by room to numerous tenants. This is by far the highest rental you could achieve but you would need to consider the disadvantages. Most multiple lets are to students and they are not known for taking great care of a property. You would need to make sure that you had all the correct indemnities and insurances on board, but for good returns, this is probably the best option of all, as you have a more or less guaranteed full occupancy through almost the entire year, with a retainer in college holidays, so the income is year round. Again, your contract is likely to be fairly short, meaning that you could sell the house with not too much wait, should you decide in the end that selling is the right thing for you.


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Ethical Ways to Use Social Media in the HR Department

Today employees are frequently hired and fired based on social media research done by an employer. In fact, many employers make demands that employees do not discuss their employer in a negative light on social media from Facebook to Twitter. But recent legislation has said that such restrictions are illegal. The National Labor Relations Board says employees can discuss work life whatever way they want whether they are discussing it at dinner or on Facebook should make no difference. The organization fought for the reinstatement of several employees who were fired over disparaging posts on Facebook. “Many view social media as the new water cooler,” says Mark G. Pearce, the board’s chairman. “All we’re doing is applying traditional rules to new technology.”
But, there are instances when social media is rightfully used in matters of HR. Here are some of those instances:

Social Media apps

Firing Because An Employee’s Negative Social Media Posts Are Not About Working Conditions

While the NLRB supports employee discussion of poor work conditions as a way of bettering said conditions, it doesn’t support generally offensive reflection of employers based on employee actions. Recently a reporter posted on his Twitter account: “What?!?!?! No overnight homicide…You’re slacking Tucson.” And he also posted, “Stay homicidal, Tucson.” The NLRB had no problem with the newspaper firing this employee over the posts because they were not trying to better work conditions, but rather were offensive and poorly reflected on the newspaper. Likewise, the NLRB supported a bar’s firing of a bartender who posted on his Facebook page that he hoped his “redneck” customers choked on glass as they drove home drunk. Because the posts poorly reflected the employer and had nothing to do with improving work conditions or employment, the NLRB supported the employee’s dismissal.

I hate this job

Firing Because An Employee Discloses Trade Secrets or Private Company Details

In the case that an employee agrees not to divulge company trade secrets and other details, HR departments are legally entitled to dismiss the offending employee. The HR department just needs to make sure that these social media policies are clear, according to Denise M. Keyser, a labor lawyer. She advises companies to implement specific social media policies rather than loose “across-the-board” restrictions.

Hiring Based on Social Media sites

Social Media Explained (with Donuts)

Employers are not just firing based on social media sites; they’re also hiring by screening Facebook pages and Twitter accounts to find prospective employees. Lawyers suggest if employers do this that they tread lightly. Not hiring someone based on decimation build off of Facebook research can be grounds for a lawsuit. Likewise, as more and more people become aware of HR’s use of Facebook to determine employee character, many are creating ‘fake’ Facebook pages that don’t accurately reflect the person’s daily activities. If you’re using Facebook as a way to recruit, just make sure that you do so in a respectful and non-discriminatory way and that you make sure the page is legitimate.

Social media brings private lives into public sight; in fact, that’s essentially the definition of social media’s goal. So it’s no surprise that HR departments are using social media to help them determine the effectiveness of a given prospective or current employee. As legislation starts to catch up with social technologies, just make sure that your HR department treads lightly, legally, and ethically.

Christopher Shanks is a blogger and uses several social media sites as inspiration for his articles about employment related stories. He also uses and to find interesting people for his articles.


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