Many businesses begin the commercial collections process in-house (read more on that here). While this can seemingly be a cost-effective way to recover past due accounts, there are some accounts that are harder to collect on. So the big question is: When should you outsource your commercial collections? Here are a few things to consider.
Past Due Company Is Being Sold
If the past due company is being sold or if it is in the middle of an acquisition, you should consider placing the account with a commercial collections attorney. A commercial collections attorney can contact the parties involved in the sale or acquisition and work to get you paid. Sometimes, when a business is sold or acquired, there are certain legal actions you can take to get the money that is owed to you.
They Refuse to Acknowledge or Speak with You
If the company that owes you money refuses to acknowledge you, return your calls, or speak with you, it's time to delegate the collections process to a commercial collections attorney. When a relationship ends on a bad note, you run the risk of damaging your reputation if you continue to try and contact the debtor. Outsourcing the past due account involves a third-party who isn't as involved in the relationship.
Financial Records Need to Be Reviewed
If quarterly or yearly financial records need to be reviewed, consider outsourcing your commercial collections to a lawyer. The right commercial collections attorney understands how past due accounts affect your cash flow. You can receive valuable feedback on what you should write-off and what you should pursue.
Do You Really Get More Options By Hiring a Commercial Collections Attorney?
Do you really get more options if you hire a commercial collections attorney instead of a collections agency? Yes. A collections agency may not have the right team in place to file small claims lawsuits on your behalf. A commercial collections attorney can help you by reviewing past due accounts and informing you on whether a lawsuit would help get you paid. Companies who are behind in paying on their accounts may also respond more positively to a payment request when presented by a lawyer than by a collections agency.
For more information, contact knowledgeable collections attorney Ronald P. Slates today.