There are many joys and frustrations that come with owning and running a small business. But perhaps the one thing that brings the most frustration is collecting from business clients who owe you money. Here is a five step process to assist you in your collection endeavors:
1. Call the client
Courteous and professional communication is critical. Never harass the client who owes you money. Don’t leave more than one message per day, and make sure your messages aren’t threatening. Keep notes on all telephone conversations.
2. Send a letter and/or email
In addition to phone calls, send a series of letters and/or emails informing your client of their debt and your intention to collect it. Make sure to save copies of your correspondence in the event you decide to hand the matter over to a collections agency or take the client to court.
3. Have an attorney send a letter and/or email
If your efforts fail to achieve results, hire an attorney to send letters and/or emails to the client. This escalation will indicate to the client that you take the matter very seriously, and that it is imperative they pay.
4. Have your attorney send a second letter and/or email
A second letter and/or email from your attorney will reinforce to the client that you are, at this stage, willing to take all legal steps necessary to collect money owed, including going to court.
5. Lawsuit and Service
If all the above avenues fail, you can sue for the money owed by filing a claim in court. If you prove your case, the court can issue an enforceable judgment to obtain the amount(s) owed to you.
Your goal is not only to collect the money owed to you, but to also maintain a good relationship with your client.
The Jayaram Law routinely and successfully assists its clients in their business-to-business (b2b) collection needs. We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.
If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting www.jayaramlaw.com.