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NY Commercial Debt Collection Lawyer

 

Collecting Commercial Debt

Commercial debt is a harsh business reality. Collecting commercial debt doesn’t have to be.

At FFGN, debt collection is what we do. Our aim is to actively participate in the recovery of your commercial debt in the quickest time possible as well as work with our clients to develop strong credit policies and efficient collection methods.

In the world of business, many companies sell their goods or services on credit and at times are required to pay a deposit for goods or services to fulfill their own company’s needs.

Even when you have a credit policy, perform admirably, and a customer or supplier passed your screening, seemed honorable and solvent – you could still be left with a debt.

The sales transaction generally takes the form of an invoice generated by a company and delivered to the customer for payment within an agreed timeframe. These invoices are entered into a company’s accounting system as accounts receivable, which are legally enforceable claims for payment from a business to its customers for the goods supplied and/or services rendered in execution of the customer’s order.

While this process is a standard operating business model, the seller is laid vulnerable to potential losses if its customers do not pay the invoice when it becomes due. A strong credit policy and efficient collections process can minimize a company’s exposure to past due invoices, but the reality is that debt does occur, and sooner or later, every company faces the need for commercial debt collection services.

At some point when your letter writing, meetings and phone calls fail to produce results, it is time to bring in an experienced professional. When we are assigned a claim, we recognize that each case is unique and review the claim before opening a case. Examining the documentation of a claim enables us to provide an expert opinion on the odds of collectability, allowing our clients to make informed decisions, which can potentially save time and money.

We work your file efficiently and effectively to maximize recovery in the shortest amount of time. During the process of FFGN collecting your debt, you will receive regular communications and updates from our experienced team and experience personal service and accountability throughout the entire process.

As a long-time member, in good standing, in IACC (International Association of Commercial Collectors)  you can rest assured that we are professional commercial collection firm delivering quality, ethical and legal collection services. We’ve been recognized for our service by some of the most prestigious organizations world-wide an award winning and invited to conduct workshops and speak at professional organizations and conferences.

We make every effort to collect your debt before recommending legal action. Our efforts include, but are not limited to, contacting the debtor through demand letters and phone calls to inform them of the situation and advise them of the risk of legal action. There are some myths surrounding commercial debt collection and we would like to address the more common misunderstandings here:

Truths About Commercial Debt Collection:

  • You have to go to court to get a mechanic’s lien. You do not need to go to court to file a mechanic’s lien. However, there are statutes and laws that must be adhered to in order to have a positive outcome. To ensure collectability, consult a professional before filing and advise your accounts receivable department of critical deadlines so that you don’t miss filing opportunities.
  • If a debtor files bankruptcy, there is no hope of collecting. While that may appear the case on the surface, it is not always the case. Liens that were filed at least 90 days before the debtor filed bankruptcy may survive the bankruptcy process. Another reason to start professional collection efforts early.
  • You can resolve the case through Mediation. Actually, that might not be the case. While mediation may be faster and potentially less costly than litigation, there is no guarantee of an outcome without both parties agreeing to terms.
  • Arbitration is quicker and more cost effective than filing a suit. Unlike mediation, an impartial arbitrator hears both sides of the argument and then hands down a decision that both parties are bound to honor. Self-representation in arbitration might not be the best idea as federal and state laws are complicated, continuously evolving and will influence the arbitrator’s decision.
  • Litigation is a last resort. While we agree that efforts in earnest to collect commercial debt should occur first, there are cases where litigation is the most effective path toward collecting delinquent debt.
  • You were awarded the right to collect with a judgment and now you will get paid. Wouldn’t that be a perfect scenario, however it is not always the case. There are times, more often than not, that you need to extract payment to fulfill those judgments.

Statutes and laws, rule the behaviors and actions of commercial debt collection. While there are several options to collecting commercial debt, it is advisable to work with a professional organization that is experienced and professional to improve your collection outcomes. Give us a call to learn more about how we can be of service – your first consultation is free.

 
 
   
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