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Los Angeles Business & Commercial Law Blog

Why You Don't Want to Act as Your Own Debt Collector

Thumbnail image for Thumbnail image for Thumbnail image for 1439338936_Money_Bag.pngAs a business owner, it may be tempting to act as your own debt collector for commercial (business) loans or outstanding debts. For example, suppose you advance funds to a certain vendor and the vendor delays paying you back for several months. You will likely send gentle reminders and then make more aggressive pleas as time goes on and you seek repayment. Eventually you will want to take matters into your own hands.

Seeking Outside Help to Collect a Debt

Some business owners quickly realize that informal methods to collect on outstanding accounts are generally not effective. At some point, especially with a sizeable debt, it makes sense to hire an experienced collections lawyer to represent the business owner in commercial collection efforts.Thumbnail image for Thumbnail image for 1452290873_paper-documents-sheets.png

Methods for Debt Collection

For many business owners, taking on debt is part of the cost of doing business, especially in the beginning. For example, businesses may find themselves putting business expenses on credit cards, borrowing money to purchase equipment and other assets, and / or using lines of credit to make improvements or renovate the business' physical space.

Debt Collection and Timing

One of the challenges for many business owners is ensuring accounts receivable are current. If your clients or suppliers' accounts are past due, you may consider calling a firm to assist with commercial collections. Indeed, timing is often critical in debt collection matters. Some business creditors worry that by the time they collect, the borrower will have liquidated any assets that can be used to repay the loan. While legal procedures can slow down or stop a borrower from destroying assets, the most important part of reacting to a borrower's refusal to pay a loan is to seek immediate and experienced legal counsel.

Can You Reset the Clock on Commercial Collections?

Thumbnail image for Thumbnail image for Thumbnail image for 1439338936_Money_Bag.pngCommercial collections can be confusing for business owners. One of the most common concerns we've noted is the statute of limit on commercial collections. Different sorts of debt have different time limits. Can an older commercial debt ever have that time limit reset? In many instances, the answer is yes.

An Ethical Commercial Collections Process Can Protect Your Business

Thumbnail image for Thumbnail image for 1452314260_Lawyer.pngThe commercial collections process is subject to certain laws and an ethical commercial process is essential to staying in business. Yes, collections can be difficult and frustrating. However, it is important that you and your employees maintain an air of professionalism and obey collections laws. Otherwise, your business could be named as a defendant in a lawsuit that involves the government as a plaintiff. Here are some ways that you can ensure that your commercial collections process is above board.

How You Can Improve Your Commercial Collections

Thumbnail image for Thumbnail image for Thumbnail image for 1452314260_Lawyer.pngCommercial collections can be stressful for a business of any size. And, without the right tools in place, it can be challenging. For example, the older the debt, the harder it may be to collect on it. Here are four ways that you can improve your commercial collections.

3 Commercial Collections Questions Every Business Owner Should Ask

Thumbnail image for 1436841485_Big_Taxes.pngCommercial collections is a process that occurs when an account used by a business goes unpaid and the service or goods provider takes certain steps to attempt to collect on the money that is owed to them. As many business owners can attest, this is often not a simple chore. Here are 3 commercial collections questions every business owner should ask before starting the process.

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Contact our commercial collections lawyers at our firm to discuss your and your clients' business, commercial collections and enforcement of judgements' issues. The skilled and experienced team of attorneys at our downtown Los Angeles law offices offers hourly and blended fees (discounted hourly plus partial contingent fee) to our clients.

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