Business Debt Collection
A little debt is expected in any business, but too much debt can seriously damage your company’s ability to operate. If unresolved, it may lead to insolvency if not adequately managed. Debt collection is one of the essential functions of any business. It includes tracking down debtors for payment, negotiating debts, and taking legal action against those who refuse to pay. It is a crucial part of the overall business operation.
What is Business Debt Collection
Business debt collection is an important tool for businesses to protect themselves against unpaid debts. A business may also hire a debt collection agency to assist with the process. A debt collection law firm should have extensive experience in collecting from clients and specialized knowledge in the legal system. The process begins with tracking down the overdue accounts receivable. Once the outstanding amount is determined, a non-creditor collection agency will negotiate for a settlement with the debtor. However, if it fails to reach an agreement and the case goes to court then the business will have to file a court case against them.
Basic Organization of Business Debt Collection
There are three basic steps:
1. Finding the debtor and their accounts payable (AP) statement.
The business collection agency will use information such as a postal address, telephone number, online credit accounts, and numerous other ways to gather the necessary information to find the debtor. The agency will then have the debtor’s name and account numbers to send out a demand letter.
2. Reviewing the debtor’s AP statement for payment status.
The business collection agency will then determine if the debtor is current or overdue on their bills. If the debtor is no longer in business, the agency will contact them to discuss a payment plan.
3. Filing a lawsuit against the debtor if they have not paid.
Once all of the bills have been reviewed and a letter has been sent requesting payment with a 30-day deadline, the debt collection attorneys will then file suit against the debtor and attempt to agree with them. If they fail, they will start a legal process of going to court and obtaining a judgment against the debtors for what they owe the client.
Why Our Law Firm is Better than a Collections Agency
A law firm usually handles business debt collection. A law firm has many advantages over a collection agency. They specialize in the area of law, and they have an understanding of how to work within the legal system to obtain results. Collection agencies have a set formula for negotiation and do not handle court cases. They also do not have any legal experience.
A law firm is experienced enough to sue on your behalf or defend you in a case. You cannot do this independently without running the risk of being sued by the very people you are suing. A debt collection attorney can sue on your behalf, but only if you cannot do so. Also, only attorneys know the intricacies of what is needed for a case to go forward in court, and that is why they must handle most of the work.
How We Stand Out in Business Debt Collection
Goldberg & Oriel Debt Collection Attorneys, Massachusetts, has a team of professionals dedicated to business debt collection. We want your business to succeed, which is why we make it our priority to help you with simple solutions for financial problems. We explain your options and help you choose the best way for your organization to reach its goals promptly.
Our debt collection attorneys will personally handle your case to give you the best possible outcome. In every case, direct communication with a debt collection lawyer ensures every client is treated with the individualized attention they deserve.
We work steadily with clients to reach settlement agreements on their behalf and efficiently extract payment from their creditors. We can provide you with the best possible outcome in a court of law, which is why we have been so successful for many years. We will continually inform you about the status of your case until it is resolved for good.
Our services are cost-effective therefore fit within the financial constraints you already have. We only get paid if we collect money for your client, and that means there’s no out-of -pocket cost on their end! The more quickly they pay up after getting served with legal process the faster everyone can move along without any unnecessary hassle or expense associated with collecting debts from debtors who don’t want to be taken responsibility for what they owe (or simply cannot afford).
By working with our law firm, you can rest assured that you will receive the correct guidance needed to reach an agreement with your creditors. We are committed to doing our best to provide you with the best outcome possible.
The complexity of business debt collection requires the knowledge of an experienced attorney. Those facing charges for unpaid debt need to contact Goldberg & Oriel Debt Collection Attorneys as soon as possible. The sooner we are involved in the action, the better our chances of obtaining a positive outcome. Our goal is to get you back on track and get your finances back on track as well.