Not all debtors pay up. Sometimes, the best option for you to try and get the money that is owed to you is to sue the debtor to obtain a judgment against them. So, what happens when you're ready to file a lawsuit?
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.
5 Strategies to Help You Build a Better Commercial 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.