Business Owners Cannot Give Clients a Free Ride
All companies are in business to make a profit, to make a living, and to offer a needed product or service to you the public. Clients who come to you for information, product, or service do so with the knowledge that they must pay you for what they receive.
If you gave everyone who came to your company free services, you would not be able to stay in business long. If clients do not want to pay, you soon lose your livelihood.
As a business owner of any company, hopefully you find that most of your clients pay you for services rendered. However, there are those few who avoid paying you. Reasons are varied such as, simply not wanting to pay for anything and the ability to get goods free, they keep forgetting about the debt, or the client simply does not have the money to pay you.
In an ideal world, your clients will always pay on time. So what can be done about the few who do not pay on time? Moreover, what should you do if you have tried everything to collect what is due? If your business is in a difficult situation, then it might be time to seek the counsel of an attorney to collect any outstanding business debts. However, before hiring anyone, you need to know that they are the best in their field. Ideally, they should also be based in your local area. This ensures that they have a good understanding of business law in your location. For example, if your business is based in Denver in Colorado, you can find plenty of helpful legal resources on this website: www.cololawyers.com. Ultimately, be sure to compare a few different legal professionals in your area to ensure that you have the best business law experts on your side.
State Laws, Rules, and Regulations
Each state has its rules, regulations, and laws in place regarding the collection of business debts. By all rights, you can start proceedings the day after the bill is due to collect on that bill. However, most companies give clients a grace period after the due date. Most companies are very lenient and most will work with clients who cannot pay their bill.
It makes no difference if you go through a third party collection company or an attorney; laws must be abided. The difference between these two is that letters from attorney’s office make clients take more of a notice. The client may soon realize that the business is serious about collection activities because they sought the guidance of an attorney.
An attorney can send a letter to the client threatening legal action. If the bill remains unpaid, then the attorney can take further steps. If you hire an excellent attorney, they can generally negotiate a settlement that makes you and the client happy. If the bill remains unpaid after all measures by your attorney, the attorney can explore options for liens on the property, wage garnishments, and a writ of execution. These steps are reserved for accounts worth thousands of dollars in unpaid debt. Seldom do business owners have to take these measures.
When a bill becomes too old, business owners can no longer collect on the account. This time usually involves seven to ten years, more or less.
One Client Can Make All The Difference To Your Business
All it takes is one client who does not want to pay you for services rendered, especially if the account is a small account. If this client owes you hundreds to thousands of dollars, this could be what breaks your business. Pay you recieve for services rendered is what you use to pay your vendors, meet payroll, meet your financial demands, and keep your business running.
As a business owner, you will eventually meet up with a client that is difficult to collect. As a business owner, you know that getting paid on time is essential to keeping your doors open. Many business owners believe that if they go right to a business attorney for help, this is quicker and more beneficial than a collection company. A short and sweet letter from an attorney is more productive than a threatening and harrassing letter from any collection company.
What are the Steps a Business Attorney Can Take?
The following are the steps involved in collecting a debt. A business attorney can help you get back on an even keel with your accounts.
- Attorneys never use harassing and unprofessional tactics like collection companies.
- The attorney sends a short letter.
- The client notices that the business hired legal representation for payment.
- The attorney negotiates a settlement of the debt between the business owner and client.
- The possibility of a lawsuit sparks payment.
- An attorney considers why the client is not paying their debt, such as temporary setbacks, loss of liquidity, or more willing to settle or make payment arrangements.
- Attorneys may mention a possible pending lawsuit but tries to avoid this only as a last resort, depending on how much the client owes.
These third-party collection companies use harsh words, threatening treatment, and harassing calls to get debts in collections paid. By the time a debt reaches a collection company, the business does not care if that client returns or not. The priority is not the client, but the amount of money collected. Collection companies set a quota for employees to fill, which accounts for some of the most formidable tactics to get people to pay. A collection company usually does not care what the reasons are that the debt is not paid. The company wants the money, and that is the bottom line.
A Business Attorney is Your Best Option to Collect Uncollectable Debt
If you are a business owner in Houston, Texas, or surrounding areas and are having problems collecting from customers who avoid paying their bills for products or services rendered, give this experienced, seasoned, and licensed attorney a call today and see if hiring an attorney for bad debts is the path you need to take. This attorney is ready to give you a free, no-obligation consultation to determine if you need to hire an attorney to help you collect on accounts you cannot.