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Billing for services and products have an inherent place in our society since it gives us access to goods and services that are paid within a given time period. In the case of businesses, debt comes into existence when a company delivers goods/services to a customer, which is supposed to settle its invoice within 30, 60, or 90 days. But many creditors struggle to recover the money owed each year. Then, unfortunately many times it becomes necessary to hire a professional in order to get the invoices paid. There are two types of professionals that specialize in debt recovery: business collection attorneys and collection agencies. This article discusses some of the misconceptions people have about business collection lawyers.
The fear of taking legal action
When asked why they chose to hire a collection agency over a collection lawyer, most companies evoke some fear of taking legal action. As you might know, going to court is often associated with a number of negative things such as high legal fees and the bad impact on corporate image.
However, companies should know that there’s very little collection agencies will do that they haven’t tried already. In general, these firms start by sending letters to customers whose account is delinquent. If they don’t hear from the commercial debtor, they then move to the telephone contact phase. This is where collection agencies may be able to recover some of their clients’ debt. Also, business owners should know that the cost of such agencies depends on the delinquent accounts’ features such as:
- The volume
- The average size
- The age
When to hire a business collection attorney?
In general, collection attorneys become the best alternative if the amount that is to be recovered is more than a few dollars. Since these professionals have the ability to take debtors to court, they are easily able to recover more than what collection agencies recover. Unlike collection agencies, attorneys can file suit. The major difference between collection agencies and business collection attorneys is the guarantee that the latter leverages the law more effectively. If your business is owed money, contact us for more information about the services that we can provide to you. We always provide fee agreements so that you know exactly what we will be paid, and generally for most collection matters, we get paid an agreed upon percentage of what we collect for you. If we collect nothing, we get paid nothing. Give us a call or send us an email now and let us help you collect what is owed so that you can get back to work. Remember, there is no charge for us to evaluate your claim.