Debt collection is one of those tasks that business owners typically loathe dealing with. When money isn’t coming in on time, it takes critical resources from a business, and business owners have to spend more of their valuable time figuring out how to handle delinquent accounts. This is why having a solid debt collection strategy in place is essential to the running of a business. A protocol that addresses the practices and actions a business takes to keep track of accounts and address accounts that come past due can be helpful in ensuring financial stability.
Business owners can reduce the stress and extra work that is needed to deal with commercial debt collection by working with an attorney. In California, the Los Angeles commercial debt collection attorneys at Leiva Law Firm can assist you when it comes to collecting debt that you are owed.
Best Approaches to Commercial Debt Collection
Sometimes a debtor goes into a business relationship never intending to be in such a position where they can’t pay their bills. Still, it is possible that any business owner can find themself struggling to pay back debts because they don’t have the financial means to do so. But even in these instances, there are ways to work with debtors to get their accounts current again and also preserve the existing business relationship.
Despite the reason for the debt, creditors have rights including receiving payments for the money that is owed to them. When a debtor does not pay, a creditor may use different means to recover the amount they are owed. Though, when pursuing debt collection, creditors must do so lawfully abiding by the Fair Debt Collection Practices Act.
Some of the strategies that a business owner can use to effectively recover debt include:
Be As Detailed As Possible with Record Keeping
Having every single detail recorded about any transaction that happens can help you quickly provide information to a debtor so they can see where the issue is. Additionally, such meticulously kept records can also serve to be advantageous should it be necessary to take legal action to recover debt. Last, when records are organized, it is much easier to spot accounts that may have become delinquent.
Reliable and Consistent Communication
Communication is incredibly important when securing debts. There should be hard rules in place that are followed by a company where the minute an account becomes past due, follow-up and contact with the debtor quickly ensue. Whether it’s phone calls or emails, kindly reaching out to debtors will inform them of the problem and discuss repayment terms.
Be Flexible
Perhaps a debtor cannot pay everything upfront but rather, over time. Being flexible with strategies for repayment can be a softer approach to getting repaid and keeping relationships intact.
Speak with an Attorney at Leiva Law Firm
If all debt collection efforts fail, it may be necessary for legal recourse. An attorney at the Leiva Law Firm can discuss what options a business owner has to obtain debts. Call (818) 519-4465 to schedule a free consultation with an attorney today.
