If you are like many business owners, there are probably many areas in your business that you would prefer to place your focus on before you even begin to think about commercial collections. Customer service, providing for clients, accounts receivable and payable, and even building your business probably top the list. Although those items are certainly important, commercial collections should be your first focus. Here's why.
It happens to all businesses: the need to deal with past due accounts. Some of the commercial accounts may be small and you may not understand exactly how leveraging commercial collections can improve your bottom line. Of course, for past due commercial accounts that are high value, you understand just how much they can affect your bottom line. Here are 3 ways that using commercial collections may improve your bottom line regardless of the size of the past due amounts.
The process of commercial collections is part of business. While it would be nice if all businesses paid their outstanding balances on time, it's unlikely and, at some point, you will need to get involved in the collections process.
If you provide your services or goods to another business, you will, at some point, experience the stress and anxiety associated with past due accounts. It's something that all businesses experience. When businesses don't pay, you may choose to assert your legal rights during the commercial collections process. If you're unfamiliar with the commercial collections process, you'll want to read this post and bookmark it for future reference.
Preclusion. This complex issue deserves another blog post. As we have touched on, the two types of preclusion (claim and issue) have different requirements.
Past due accounts happen to every business. Commercial collections are no easier than consumer collections. When done incorrectly, it can ruin business relationships, damage the online reputation of your business, or cause your business to be the subject of a lawsuit. Before you send a business account to commercial collections, do these 4 things first.
Commercial collections can be a confusing process for a business owner. In this post, you're going to learn the answers to the 5 most frequently asked commercial collections questions. This post is not meant as legal advice. In fact, we aren't addressing any legal scenarios here. This is because each commercial collections case is unique and has its own facts as well as potential legal solutions. To learn more about your legal rights, speak with an experienced attorney who focuses their practice on commercial collections.
Collecting upon a judgment is not for the faint of heart. Unless there is insurance or a solvent debtor, getting the judgment is only half the battle. The real theater comes after the client has expended considerable sums getting to the judgment only to learn that the debtor typically doesn't just cut a check to the creditor. Instead, many debtors see the writing on the wall and engage in what we in the business call "asset protection." Nothing is more frustrating than finding out that between the time the judge signed the judgment and the abstract of judgment was recorded, the debtor has transferred his residence to a newly set up revocable trust. For many debtors, their home is often the sole source of recovery for a judgment creditor.
Creditors: Did you know that you can add an individual as the alter ego of a corporate judgment debtor post-judgment?