There are countless types of businesses in today’s economy, so it is very important to understand the basic characteristics of three main types of businesses before beginning a collection effort. As the structure of the company affects the way you collect the bills you are paying and who you should speak when you call them.
Each of them is organized in a different way, and as a result, your collection approach should be adjusted according to the type of business you are facing. In this publication, we will provide a very brief explanation of the structures of each of these entities and any specific advice we have on their collection.
Proprietorship
This is the most common type of business mostly for small operations. There is one owner who runs the company. When a person opens a property, he bears the financial risk of the company: If the company owes money, they are personally responsible for it. When aggregating from a property, it is important to talk to the landlord during billing contacts, as he is actually the right point of contact for debt collection.
Partnership
Association absolutely does not need to explain: the company belongs to a group of at least two micro-owners, who run the business as a joint venture. If you are an entity associated with your debt collection efforts, you may need to talk to more than one partner and you may need to review the written agreement used to form the partnership to determine who is responsible for the financial of the company. Find out who is responsible for the finances of the company and make sure to focus your communication efforts on those parts.
Company
Companies are very different from companies and property entities, where no individual is responsible for the company's debts. Many companies are large companies, through the establishment, division of company ownership into shares. Depending on whether the company is traded or not, these shares are sold to investors through equity markets in order to divide the company's ownership into several different groups. Companies can also buy shares in other companies, allowing companies to own other companies.
Proprietorship
This is the most common type of business mostly for small operations. There is one owner who runs the company. When a person opens a property, he bears the financial risk of the company: If the company owes money, they are personally responsible for it. When aggregating from a property, it is important to talk to the landlord during billing contacts, as he is actually the right point of contact for debt collection.
Partnership
Association absolutely does not need to explain: the company belongs to a group of at least two micro-owners, who run the business as a joint venture. If you are an entity associated with your debt collection efforts, you may need to talk to more than one partner and you may need to review the written agreement used to form the partnership to determine who is responsible for the financial of the company. Find out who is responsible for the finances of the company and make sure to focus your communication efforts on those parts.
Company
Companies are very different from companies and property entities, where no individual is responsible for the company's debts. Many companies are large companies, through the establishment, division of company ownership into shares. Depending on whether the company is traded or not, these shares are sold to investors through equity markets in order to divide the company's ownership into several different groups. Companies can also buy shares in other companies, allowing companies to own other companies.
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