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How Small Businesses Can Benefit from an Experienced Debt Collections Attorney
Small business owners play many roles. The smaller the company is, the more hats the owner wears. When customers are late with paying bills, or don’t pay at all, small business owners can face a cash flow crunch, making business collections even more important. When your profit margin is compromised, the tendency is to go with the least expensive alternative possible. Yet engaging the services of collection agency may cost more money in the long run when the entity that owes money repeatedly disregards collection agency calls.
Business debtors generally fall into three distinct categories:
- Those with financial difficulties who want to pay but are having genuine difficulties
- Those who delay or juggle payments for any number of reasons
- Those who try to avoid paying at all costs
Most experts agree that you’ll have success with customers that fall into the first two categories. They’ll eventually pay, but sometimes eventually is not good enough.
That’s where an experienced debt collections attorney can really help. Let’s face it, you want to keep your customers, but you also need to pay attention to cash flow and profits. An experienced debt collections attorney can provide advice on how to word messages that will prompt your customers to pay the entire amount owed or at least set up a payment plan that will satisfy both your needs. Sometimes, all that is needed is a strongly worded letter from an attorney to get the collections process going. If your debt collections list seems to have many clients that fall into the third category, bypass the collections agency route for a more effective approach. Actually, many times we are at a loss trying to understand why businesses think that they can do better with a collections agency rather than an attorney. We only get paid if we collect money for our clients.
Additionally, Massachusetts is a state that subjects business to the same policies as debt collection agencies when trying to collect money owed. Working with an experienced collections attorney can ensure that you are staying within the parameters of Massachusetts law.
Contact us for more information on how our law firm can help small businesses collect the money owed to them.