Your business’s cash flow is critical to your doors staying open and your ability to operate. However, if you aren’t getting paid on time or at all, this is going to directly affect your bottom line and the survivability of your business. This is particularly true for newer businesses and start-ups.
To avoid serious cashflow problems stemming from customers’ inability to pay or pay when they are supposed to, you have to correct the situation. Sometimes, it can be as easy as sending a note that a customer still has an unpaid balance, and this will be enough for them to send the money that covers the debt they have with your business. However, there are several situations where a debtor may not be as easy to deal with and can make it very difficult for you to collect what you are owed.
If you are having an issue with clients not paying or behaving evasively when it comes to communications and keeping their accounts current, then connecting with an attorney can be helpful. When you are owed a debt, the Los Angeles business litigation attorneys at Leiva Law Firm can help you collect.
Strategies for Collecting Debt
Several useful strategies can be used to avoid amassing debt from clients who aren’t paying or to resolve a debt issue from problem payers.
- Stay organized. It is imperative that you keep all of your invoices, receipts, and financial records neat and have a system for collecting and storing files. When you have a solid record-keeping policy in place and clear procedures, then you can quickly identify issues when they arise and more easily access the documentation you need to address the issue and work toward a resolution. Solid record-keeping also helps you better keep track of your finances.
- Have a collection policy in place that all customers are made clearly aware of when they do business with you. Follow the policy and enforce the terms when you need to.
- Do not let debt linger too long because the longer it is out there, the less likely it is to be paid. So, if an account is not paid after 60 or even 90 days, then this should trigger an account to be sent to collection.
- An attorney can send a demand letter to an account that has not paid their bill, letting them know they will have legal troubles ahead of time if they do not take action to ensure their account is current and paid up.
- An attorney can identify all assets a debtor has and use this information in settlement negotiations.
- If a case goes to court and is successful, an attorney can seek enforcement actions to force a debtor to pay.
Speak to an Attorney at Leiva Law Firm Today
Unpaid accounts or accounts that are not paid on time can mean major trouble for a business. Organization, being proactive, and working with an attorney can help alleviate such obstacles.
For help with debt collection, please call Leiva Law Firm at (818) 519-4465 today to schedule a free consultation with an experienced debt collection attorney.
