"We're lost, but we're making good time."

Yogi Berra

Does that sound familiar? As a former Credit Manager, and a Collection Agency owner for more than 25 years (two agencies), I can say with confidence that a lot of Account Receivable departments could look at Yogi's statement and identify their current situation. The easiest first step to gaining control is to move out the biggest time consuming items. You can usually find them in the over 90 column. Outsourcing to a reputable third party should have a calming effect and give you room to breath. You may even have the time to step back and reevaluate internal procedures!

Lawrence Peter "Yogi" Berra was born on May 12, 1925 in St. Louis, Mo. and grew up on Elizabeth Street in a neighborhood called "The Hill".

Yogi got his "nickname" from Bobby Hofman, a childhood friend. While watching a movie about an Indian snake charmer, Bobby noted that Yogi had a striking resemblance to the Hindu man, saying "That yogi walks like Lawdie ( Larry) Berra," and the name stuck. Joe Garagiola tells a funny story about Yogi giving Carmen an anniversary card signed 'Yogi Berra.' She asked him if he thought he had to sign his last name so she wouldn't think it came from some other Yogi.

Yogi may not be the most understandable speaker in history, but he deserves his place. Just about everything he's attributed with saying (with a few exceptions) actually does make sense. You just have to think a little harder.

David Ward, CEO

Welcome back for another month of industry information and other tidbits in the Delta Recovery Systems monthly newsletter. This month we'll take a fun, yet relative look at a case study of two typical companies. We'll also learn about the IACC, and get a little timely advice from Yogi. We'd also like to wish everyone a very happy Thanksgiving. As always, we welcome any comments, suggestions and/or questions you may have concerning our newsletter and industry issues in general.

Comments, Suggestions and Feedback

"Manager A" sees the company's receivables growing and, although well aware that help is needed, he still hesitates. WHY? If I had to guess, I'd say he doesn't want to pay a portion to an outsourcing company, or worse yet, he believes that their upper management would see outsourcing as an admission of failure! So, would he rather watch the debt grow old and lose all chance of collecting it?? No, BUT...he rationalizes - maybe if they try one more call or letter the debtor will pay. OK now we are at 3 months, 6 months, 9 months, a year (and you know I could go on) do you think all of a sudden their debtor is going to "see the light"? (* See definition of insanity.) Is there some magic in the 10th letter that wasn't in the third? Face it folks, they are not going to pay you - now what? No plan? Are you seeing what I am seeing? These receivables get no respect.

"Manager B" has installed a standard operating procedure that allows for a specific amount of timely calls and letters. If the invoice is not paid in 90 days she outsources to a reliable partner. She uses a respected, professional, contingent, commercial collection agency. She also has reviewed their contract and invoice, adding language that allows them to recover the collection costs and/or attorney fees. In addition "Company B" also has language that allows them to sue in their own venue, cutting out the costly expense of traveling to get their money. A clear plan. These receivables are treated with respect!

The size of the company or the product or services you sell makes no difference. A clear plan is always best. "What gets managed gets measured. What gets measured improves". Holding on to old receivables does nothing but give your debtor the ability to write checks TO THEIR OTHER CREDITORS with your money.

The management and staff of Delta Recovery Systems work with our clients to promote responsible business. We offer free contract reviews and help our clients add the proper language to their contracts/invoices that will allow them to add the collection costs and/or attorney fees when placing an account. We also help our clients develop standard operating procedures - easy to follow steps that their employees can follow, taking the guess work out of collecting your debts. We would like to work with you to increase your cash flow and decrease your stress!

* Insanity: doing the same thing over and over and expecting different results.

The International Association of Commercial Collectors (IACC) is the largest organization of commercial collection specialists in the world. Its membership spans the United States as well as 20 countries internationally. The purpose of the IACC is to promote the welfare of the commercial collection industry. This is done by:

· Promoting ethical conduct among its members, and between members and their clients.

· Providing industry related resources and educational programs.

· Increasing awareness of the benefits of using an IACC member agency.

· Providing certification testing for individual collectors of member agencies.

All of Delta's collectors are IACC Certified Commercial Collectors, meaning that they have been educated and tested on all facets of commercial collections. Delta is also proud to announce that our President and CEO, David Ward, is the President-Elect of the IACC. David is also a member of the Board of Directors for the IACC, and Chairman of the subcommittee overseeing IACC International Membership. Over the years the collection industry has frequently received a bad rap, oftentimes rightly so. Minimize your risk, and only employ IACC Certified agencies for all you commercial collection needs.