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Your uncollected debts are an asset if you chose your customers well.
Your uncollected debts are an asset if you chose your customers well. Getting every penny on time is less important than retaining your customers. Your credit and collections policy should be a well-organized written repeatable procedure that reflects your mission. You assume risk when your company extends installment payment terms to a consumer. When your customer purchases your goods or services, they agreed to do business with you. They are not expecting to be contacted by a third-party representative or to be on a debt collector’s mailing list. Your billing and collections should be done on a regular schedule.
Your first step in your debt collection process is simple. Send a second invoice and give your customer another full 30 days to pay. If he or she was not feeling well or your invoice was simply set aside when the phone rang, you’ll have your payment within the second thirty days possibly with an apologetic note or an embarrassed thank you for your patience.
Your accounts receivable reflects sound business practices when you effectively convert your products into cash flow. Accounts receivable is a short-term asset. You can get a line of credit or a short-term loan with your accounts receivable as collateral. Think of yourself as a lender and extend credit only with sound judgment. You make more money with your products in inventory than on an invoice that is never paid. Your cash and inventory is your cash flow.
Your credit and collections policy is part of your customer service. When your policy is clear and your customers know what to expect, they are more likely to meet your expectations. If you are a small business owner and you do not receive your payment within 60 days, call and talk to your customer. You can be sympathetic and tell the customer you will work with him or her and offer to accept payments or be firm and tell him as stated in your credit policy, you’ll add interest to the amount past due until it is paid in full.
You must know that your state can hold you to the same standards as a debt collection firm if you try to collect your own past due accounts. Understand and be aware of deceptive unfair business practice laws. Nobody likes dunning, and it’s illegal to call your consumer an unreasonable number of times or charge interest if interest was not stated in your original purchase agreement.
Massachusetts Collection Attorneys
Our Massachusetts debt collection attorney can help you. Debt collection and business laws vary by state. You work hard as a small business owner and a breach of contract can devastate your small business. Litigation is time-consuming and expensive. Our Boston, Massachusetts, debt collection lawyer can relieve large and small businesses from civil litigation and bankruptcy court proceedings. Our debt collection law firm accepts business clients on a contingency basis.
A contingency fee is payable upon retrieval of monetary damages through a settlement or verdict at a trial. The contingency fee pays for your attorney’s time and costs extended on your behalf. Typically, the percentage is 1/3 or 33%, and your attorney advances all the court costs and fees.
A complex case or one with a lower chance of recovery will cost more. Your attorney will require more of the recovery. One that’s easy to win requires less effort. It may be possible to negotiate a lower contingency percentage in your contract with our attorney.
Our attorney knows instantly how to collect your money. Our lawyer can efficiently and effectively advise you. You can improve your business practices, and you can afford our services. Our law office is not just a reputable third-party debt collector. Our centralized collection process through our established nationwide business network saves you considerable time and money. Our law firm will keep you informed of our efforts on your behalf on a regular basis.
Our contingent fee agreement means we expect no payment until we collect your money, and our attorneys are obligated to collect your money as swiftly as possible. Our debt collection resources enable us to look for changes in your delinquent customer’s financial condition. Our attorneys initiate collection procedures when it is likely your client who left the area, who was hospitalized, or filed bankruptcy can pay you.
Our contingency fee varies depending on the services you need. Our attorneys can file small claims lawsuits and identify your consumer’s assets as a means to recover your loss for the debt. Our Boston, Massachusetts, debt collection lawyer can garnish wages nationwide according to federal, state, and municipal laws. Our contingency fee may be 40% on your customer in bankruptcy. Our attorney has to attend the U.S. Bankruptcy Court 341 meeting of the creditors if your customer is in Chapter 7 or Chapter 13 bankruptcy. Bankruptcy doesn’t mean you will not be paid. You may be paid on a regular basis directly from the bankruptcy court. You’ll be entitled to the full amount due if the debtor defaults.
Costs associated with debt collection range from discovery costs and filing fees to expert witnesses, and fees for production of documents needed in your case. Due to the increased costs of litigation, you can expect to pay an increased percentage of the recovery to your attorney who thoughtfully recovered the greatest possible settlement on your behalf. Witness testimony can cost thousands of dollars if your attorney has to hire witnesses on your behalf. Overhead costs, such as simple copying of documents and postage can cost a few hundred dollars.
Goldberg and Oriel
Call today for a free consultation with our distinguished debt collection attorney. Our attorney will apply his finance and accounting background to all your questions and problems. Our attorney can help you make sound business decisions. Our law firm can help you collect the maximum allowable recovery on your accounts with past due balances.