Client and customer debt plagues most commercial enterprises, from banks and credit unions to those engaging in domestic and international trade. Unpaid debt affects your business operations, your success and your company’s longevity.
You may think that partnering with a debt collection agency is your only option, but the costs of these services are often prohibitive. Resorting to a debt collection service can also affect your ongoing relationship with clients.
Legal representatives often get better results
You may not know this, but the legal profession can aid you in collecting unpaid invoices and other business debts. More and more law advocates are choosing collections as their primary service field to keep up with current demand.
As agents of the law, attorneys often succeed where debt agencies fail. After all, few people want to go against an individual representing the law.
Try these good faith strategies
Some businesses get fair results by attempting to collect their debt before turning to the law. These good faith strategies can help.
- Reach out to clients as soon as invoices are overdue
- Call your debtors but avoid harassing or threatening conduct
- Send formal demand letters to those that owe your business money
- Extend an offer to settle for less if it poses no hardships to your company
Even if they fail, these techniques lay a sturdy foundation for you to build a debt collection lawsuit, if necessary. Courts look favorably on companies that attempt to resolve such matters in-house.
Be sure to document and save all your attempts to collect on the debt, as it will strengthen your case if a lawsuit becomes necessary. We also suggest learning more about collecting business debts without violating Florida laws.