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Learn About The Collection Process Before You Start
The collection process for any large account can be complicated because businesses need their money, old clients do not want to pay, and something must be done to add cashflow. The collection process is described below so that you understand what will happen when you begin working with an expert. If you use an attorney who understands debt collection, you can quickly make changes to the way you resolve or reconcile old/delinquent accounts.
Why Do You Need A Debt Collector?
Debt collection is reserved for any account that has no possible chance of being paid. You may wait 60 days, 90, or even 120 days before sending these accounts to collections. In some cases, you may have notified your clients of this policy, or you may want to start with a new debt collector so that you can reconcile these accounts quickly.
When you reach out to a debt collector, they do all the work for you.
The Debt Collector Reaches Out To All Your Old Clients
Once the Boston debt collection firm you have chosen believes they can collect on your debts, you will hand over all documentation for the delinquent accounts. The debt collector will begin reaching out to all your old clients about payment. They can make phone calls, send emails, and send letters. You do not need to worry about these accounts because payments will be reported to you as soon as they are made.
Why Should You Work With A Lawyer?
You should work with a lawyer because a lawyer’s letters and phone calls carry a certain weight that other debt collectors cannot leverage. Someone who gets a letter from a lawyer is much more likely to call or email to find out what can be done. No one wants to be sued, and most of your clients will take immediate action when a Boston debt collection lawyer reaches out.
You Can Agree To Any Terms You Like
When you ask someone else to handle debt collection for you, you can decide on the terms that are most appropriate for you. You may require that all your old clients pay-in-full. You might allow the lawyer to make a deal with everyone who should be collected, or you might offer a general discount for paying off the account. For example, you might agree to take payment for 66% of the total bill, and you can quickly get people to pay because they are getting a discount.
This is ultimately your decision because you get to decide how much you are willing to lose on each account. When you are working with your collections lawyer, you can ask them if they have any advice for you. Your lawyer can tell you how much they would accept, and you can go from there.
You Get A Report On Each Payment Or Collected Account
When you receive payments on each account, you will receive a report on that payment. Most people who receive these reports can quickly check off those accounts in their system. You need to know if you can close these accounts, and you must keep a copy of these reports for your records.
These reports might also indicate that the clients are not prepared to make payments. Some of these clients claim that they do not owe anything, and others may refuse to pay the amounts that have been indicated. You can take note of any problems that may have occurred while trying to collect on these accounts, and you can easily reach out to these clients on your own or ask the debt collector to be more aggressive.
A Lawyer Can Take Legal Action
A lawyer can take legal action when the client does not want to reconcile their accounts. This can be a bothersome circumstance for anyone who does not know how to collect on an account. When a lawyer can take legal action, they will file a small claims suit against the client, and they can attempt to recover the money that way. This is the last resort, but it is a very good way to ensure that angry or bitter clients will pay. No one wants to retain an attorney to handle debt, and it would be easier to pay off the account than go to court.
This Process Takes Time
Some debt collectors try to make it sound like they can collect on each account quickly. There is no guarantee that an account will be collected quickly, and it is best to wait for a while before the lawyer takes more aggressive action Consistent communication is an important part of the process, and that is why you must speak to your debt collection lawyer before you become frustrated about the amount of time it takes to collect on these accounts.
When you are planning to collect on your delinquent accounts, you need to make sure that you have reached out to a debt collection lawyer. The lawyer can do all the work for you, and they will let you know when an account has been paid. Continue working with your debt collector so that you can collect on these accounts quickly. You need to add cash flow to your business, and you cannot do it alone. Allow a debt collection attorney to explain the process and do all the heavy lifting for you.