Everything You Need to Know About Business Debt Collections
What if a little knowledge could help you get the debts you are owed?
It sounds crazy, but it’s true. Many people do not know much about business debt collections even as their business is crippled by customers owing money.
Don’t worry, though: we’ve put together a definitive guide for everything you need to know about business debt collection!
What Are Business Debt Collections?
Generally speaking, this is a business dedicated to specialized commercial debt collection. This third party can help your business secure money from customers who owe you a debt.
To fully understand your way around this debt collection, you’ll need to know the relevant laws surrounding the issue.
Fair Debt Collection
When it comes to the law and money your business is owed, you might expect some easy protection. Unfortunately, the narrow definitions of the Fair Debt Collection Practices of 1977 means that debts owed for businesses purposes are not covered under that act.
Instead, the laws regulating business debt collections are left up to the individual states. If you are seeking to hire a debt collecting service, make sure you are familiar with any local and state laws and regulations regarding those debts.
You should also thoroughly investigate any debt collection company to make sure they are in good standing with the Commercial Law League of America and their Commercial Collection Agency Association.
If you have any legal questions about business debt collections, don’t hesitate to contact a legal professional!
Whether it’s your own company or a commercial debt collection service, the most important part of the process is how you collect your money. There are several techniques that will come in handy in this regard.
First (as we said earlier), make sure you understand all of your rights under the law. And make sure you document everything (such as communication with the debtor) should you need to have it in court.
One of the best ways to get your money is to be flexible. If you’re willing to settle for a lesser amount or offer debtors an option of repayment plans, you’re likelier to walk away with at least some money back in your pocket.
Not every debtor will pay up, though. That’s when you need to really understand your options for legal recourse.
With any luck (and a lot of persistence), you will be able to get back the money you are owed. However, what can you do if the client continuously refuses to pay?
At this point, you may need to hire an attorney to begin debt recovery litigation. Such an attorney would be able to file claims on your behalf and, of course, provide representation for you and your case in a court of law.
The Bottom Line
You’ve now received a crash course in business debt collections and understand the importance of having a good lawyer. But who can you turn to if you need help?
That’s where Manfred Law comes in. Manfred is a specialist in many areas, including commercial debt collection. If you need a collections powerhouse in your corner, be sure to contact them today!