If you own a small business, you may know how difficult debt collection can be. Small business debt collection is often one of the main failing points of many businesses throughout the country. With a little practice and courage, however, you may be able to lessen the amount of late payments that are due to you, and even develop an understanding of when to expect non-payment from a customer. If you can learn effective communication skills, you may find that you can spot problems before they become too big, or even before they happen at all. Types of Late Paying Customers and ClientsIn general, small business debt collection has to do with collecting monies owed from customers and clients who fall into three categories:
In general, you will want to ensure that your clients and customers fall into the last two categories. You will be able to manage and work with those that fall into the last two categories because they have a history of making full or partial payments. As a small business owner, however, you need to be able to devise a strategy and method for figuring out which clients and customers fall into the first category. In general, you will want act quickly with regards to the first kind of customer, perhaps by calling a collections agency or considering litigation to collect the debt owed. There is a general rule that should be applied in all small business debt collection — act quickly and stay determined. No matter what kind of client or customer you are dealing with, acting quickly will ensure that you maintain your right to the money owed, and staying determined can ensure that you get paid in full. You should send bills and reminders to debt-owing clients and customers on a regular basis. There is no reason to wait until the end of a month to send an invoice or a past-due notice, send them immediately when the invoice comes in or when an amount is past-due. Collections agencies are regulated through the Fair Debt Collection Practices Act, which prohibits certain actions that may be considered harassment or fraud. What follows are some more helpful hints for small business debt collection:
Free Consultation with a Utah Small Business Debt Collection AttorneyIf you are here, you probably have a business law issue you need help with, call Ascent Law for your free business law consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Opening and Closing Accounts During Your Divorce Enforcing Electronically Signed Construction Contracts Financial Tips for Women Going Through Divorce via Michael Anderson https://www.ascentlawfirm.com/small-business-debt-collection/
0 Comments
Leave a Reply. |
About MeIn 2009 I was creating marketing channels for barbie dolls in Nigeria. Spent a weekend implementing dogmas in Naples, FL. Won several awards for writing about toy trucks in Mexico. Spent 2001-2007 analyzing deodorant in Pensacola, FL. Spent 2001-2004 researching heroin in Miami, FL. Enthusiastic about writing about clip-on ties in Naples, FL. Archives
June 2019
Categories |