As 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.
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.
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.
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.
Commercial collections can be a frustrating process. Here are 4 commercial collection tips every business owner needs to know.
Commercial 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.
As many businesses can attest, the commercial collections process often starts with making a phone call. Usually, businesses will begin by placing the collections calls on their own. This process, known as first-party collections, can be difficult for employees with little to no collections experience. To help, we've put together this useful blog post to teach you the dos and donts of your commercial collections phone calls.
The business world would be close to perfect if accounts never went past due. Unfortunately, it is a tough reality that almost every business that provides goods or services for other businesses will eventually face unpaid accounts. Why should businesses care about commercial collections instead of just writing off unpaid accounts? Here's why.
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.