Running a business is undoubtedly a profitable and rewarding experience. You came up with the concept, had the passion to find investors and went on to establish your business. Now, your business is thriving, but what do you do when customers don’t pay you on time or not pay at all? There are consumer protection laws in place for protecting debtors from harassment or unscrupulous behavior on the part of creditors, it doesn’t mean that you cannot do anything. As long as you follow all the procedures and laws put into place, your business is not without recourse. Ultimately, you may have to take the matter to court and a collections attorney will be needed in this situation.
Collecting your Debts
The first thing you have to do is take all legal and reasonable steps to collect money from your customers or even from contracts with other businesses. If you have done the work or sent the product as well as the invoice, but not received any response, there is no need to panic. You need to use a measured approach to collecting your past-due invoices. This involves sending a collection letter to the debtor and remind them of the payments missed and give them an opportunity to correct the issue. It starts with an initial letter, a follow-up letter and then a final demand before the matter is escalated.
Do you need a Collection Agency?
The need of a collection agency depends on your specific situation. When it comes to a debt collection agency, there is not a one-size-fits-all approach that can be used. But, if you are using one, it is best to hire an agency that’s licensed and bonded and complies with the regulations set forth in the Fair Debt Collection Practices Act. Bear in mind that there are a number of consumer protections in place for protecting debtors against harassment from debt collection agencies. You need to be familiar with these protections or else you may end up violating the law.
Why is a Collections Attorney Helpful?
There are a number of ways that a collections attorney is helpful. They can provide you with assistance according to your situation. They will be able to provide you guidance regarding the proper procedures to be followed and can also assist in drafting a proper debt collection latter that’s sent to customers. A collections lawyer can also provide other solutions to this problem like visiting the customer. They can also discuss if it is a good idea to use the services of a collection agency or if it is better to opt for a court-based remedy to collect the debt. This involves filing a lawsuit and getting a judgment in your favor. A collections lawyer can also assist you in collecting on your judgment.
If you want your business to be successful and want to be able to collect your payments, you should contact a collections lawyer in Charlotte, NC as they can show you how to go about it.