Using a Personal Guaranty for Business Collections

Business Collections can be a tricky business. When an account is past due or a credit limit exceeded, the natural inclination is to cease shipping supplies until the account is brought current or put the customer on COD for future invoices. While this method keeps your business from getting deeper in the hole, it may not result in getting the overdue bills paid. If your company is the primary supplier of goods for a concern, then shutting off the pipeline means it can’t produce new goods to sell and generate the income necessary to satisfy its debts.

These situations are common and often require expert legal advice to work out a reasonable system to allow your customer to continue while protecting your own interests. One method is to get personal guarantees from the owners of the company. When it’s their own credit, house and car on the line, they will be more inclined to make good on the debts of their company. Owners will be reluctant to open themselves up to liability which is why an attorney needs to get involved. The guaranty needs to be airtight and clear on the circumstances in which the principals are liable for corporate debts. [Read more…]

Massachusetts Commercial Collection Attorneys

At Goldberg & Oriel, we understand that sometimes your business needs a good commercial collection attorney to collect on past debts owed. The process of tracking down and demanding past due payments from obstinate clients can be time-consuming, annoying, and non-productive…which is why we’re here to make the process a little easier!

Goldberg & Oriel has the pleasure of serving businesses of all sizes in Massachusetts with a combined over 50 years of experience. We provide a written explanation of our fees, and we won’t surprise you with any hidden costs. [Read more…]

Find the Right Experienced Commercial Collection Attorney for Your Business

As a business, it can be difficult to handle billing and collections, particularly when your customers are behind on their payments and haven’t responded to multiple invoices.  An experienced commercial collection attorney can help you pursue debts owed, but the idea of hiring an attorney to handle collections may not be an easy decision for you.  After all, no business wants to take unnecessary legal action, and it may be uncomfortable to think about suing customers – even customers who haven’t met their payment obligations.

However, the right experienced collection attorney can help your business deal with customers who have fallen behind on their payments, because the right attorney will know the most effective strategies for obtaining payment with minimal conflict.  An experienced collection attorney can also help your business decide what steps to take when customers are resistant to initial collection efforts.  There are many ways to recover a debt in Massachusetts, including issuing written demands, working with a debtor to set a payment schedule, and taking necessary legal action to identify assets and obtain court orders if needed.  So the first question you need to answer is: how do you choose the right collection attorney for your business? [Read more…]

How A Collection Attorney Can Benefit You

Traditionally, the way a commercial creditor sought payment for a delinquent account was to attempt to collect the debt on their own, thus taking time and resources away from their own business in order to secure payment. If that didn’t work, the next recourse was to hire a collection agency, thus incurring more costs by hiring a third-party who may or may not aggressively pursue the claim.

The main, and in many cases, the only tactic of many collection agencies is to send letters to debtors, which are usually ignored. However, when debtors are contacted by a law firm, they know legal action is forthcoming, or very well could occur, if they do not respond. Moreover, debtors who owe money to several creditors often pay those represented by a law firm first. [Read more…]

Why it is Important to have an Aggressive Business Collection Attorney

An aggressive approach is key to getting the most money from your customers who are on your collections list.

Often, a company that fails to pay your invoices will be in debt to several others as well. There could be several claims on your customer’s limited funds, and their business will be inundated with payment demands. Under such pressure, your custmer will pay the account that is most likely to cause them the most legal problems.

As the saying goes, “the squeaky wheel gets the grease.” An aggressive business collection attorney will communicate to the customer that owes you money right away your intention to move quickly on collections. An aggressive business collection attorney will send a personalized demand letter that cannot be overlooked and thrown onto a pile of generic form letters from other collectors. The delinquent account holder will know right away that you are serious about getting paid. [Read more…]

Reduce Your Risk and Increase Your Profits With Commercial Debt Collection

Customers who do not pay for your services are most likely a drain on your bottom line. For business to business operations collecting the debt owed to you is not always a straight forward process, which is why you should hire an attorney who specializes in commercial debt collection for their clients. If the companies you do business with owe you money, you need to hire an experienced collection law firm who will utilize cutting edge technology to protect your interests and collect your accounts receivable.

Collecting a debt is a delicate process, and a good attorney will understand this facet of the business. The goal of every account recovery is to retain the delinquent customer as well as collect the money that is owed to you, because we understand every single customer matters to your business and there is no sense in spoiling future relations if an amicable resolution can be reached. [Read more…]

Why A Business Should Retain A Collection Attorney

If you are in business and a debt is owed to you, hiring an experienced commercial collections attorney is a far better idea than working with a debt collection agency. Collection attorneys are more persuasive when it comes to pointing out to your delinquent customers that it is now time to pay up their accounts, or suffer the consequences of a lawsuit.

Commercial Collections Attorney vs. Debt Collection Agencies
There are substantial benefits to working with an attorney rather than a collection agency. For one, attorneys offer more skill and knowledge versus debt collection services. Also, non-attorney collection agencies are restricted to making phone calls and sending letters only. They do not, however, disclose this information when they are trying to solicit your business. Instead, they may sometimes give misleading and false statistics to try and get your business. The bottom line is that debtors fear lawyers more than they fear collection agencies. [Read more…]

What you need to know about hiring a succesfull collection attorney

Behind The Scenes of The Business Collection Process

Massachusetts has some of the most stringent consumer protection laws in the country. This includes debt collection for individuals but also for businesses. If you are a business owner and your business customers are not paying their bills, your bottom line is suffering. Studies show that once a debt reaches 90 days old, the chances of collecting on that debt decreases significantly. No doubt you already know that.

Why hire a collection attorney?

One of the primary reasons you should work with an experienced collection attorney rather than a collection agency is personalization. Form letters simply do not work; debtors ignore them. While we take an aggressive approach to debt collection, we also understand the collection laws in the Commonwealth of Massachusetts. So, we understand that when we are collecting on your behalf, we are not only representing ourselves, we are also representing you. We do everything in our power to protect your reputation as well as our own in the collection process. [Read more…]

Behind The Scenes of The Business Collection Process

Just as every person has needs and depends on other people to provide products and services, every business also has to utilize products and services from other businesses. Unfortunately, some people are unable to pay for the services and products they aquire, and the same is true of business operations. Therefore, the use of business collections are sometimes necessary to collect debts from one business to another if the customer is unable to pay for the services rendered.

Debt collection can be a very complicated process, often taking a lot of time and energy investment on the part of the service provider in order to track down the nonpaying business and convince them to pay. In addition, it falls upon the business to prove that the debt exists in the first place, which requires providing a substantial paper trail including contracts and signatures from the customer, as well as records of any payments that have previously been made. The fastest way to accomplish this task is to hire an experienced collection attorney to handle the past due account. [Read more…]

Differences between using a collection agency and an attorney

An experienced collection attorney is generally one who is dedicated to collecting as much of the debt as possible, and is not looking for a quick and easy way to make a fee.

There are significant differences between using a collection agency and an attorney. A collection attorney can file a lawsuit to collect a debt, whereas a collection agency cannot do that, without the assistance of an attorney. Since the likelihood of success in collecting a debt is increased the closer to the original invoice date, using legal recourse swiftly generally produces not only better results, but it helps bring money to our clients much faster.

Bankruptcy vs Payment

In legal terms, there is only one option that a business has in order for it to no longer be obligated to pay debts: file bankruptcy. Although this may seem like a good option on the surface to escape debts, bankruptcy leaves a long record, inhibiting a business’ ability to borrow funds, seek investors and build credit accounts long into the future. Barring this, the only legal (and ethical) recourse a business has is to make payment or a settlement on their debt.

Swift and Effective

Another difference between a collection agency and a collection attorney is simply one of time. While the initial process is the same, an attorney can communicate clearly and effectively that the only way, short of bankruptcy, to get out of the debt is to pay its creditor. As offers of payment come in, you have the choice of when to accept offers or when to continue to look for full payment. With a collection attorney at the helm, you can move quickly through the legal process until your debt has been collected, giving you the ability to pay your own obligations and continue running your business.

For more information about our collection process, and to see if it makes sense to have your accounts handled by experienced attorneys, please contact us. Remember, there is never any fee to have us evaluate your claim. Call or email us now.