Credit card processors often offer loans to businesses that accept credit cards. While these loans may have seemingly inviting agreements, there are some terms that offer the credit card processor speedier debt collection relief against you.
Here are a few things you may want to consider before agreeing to the terms of the loan.
With most loans, failure to pay as required by the underlying agreement or failure to maintain a minimum balance constitutes a default in the loan agreement. Loans from a credit card processor work differently. There are many ways to default under the terms of the lending agreement:
- A predetermined percentage drop in total sales
- A predetermined percentage drop in settlement amount
- Failure to process any charges through the processor during a fixed number of days
- Use of another credit card processor
- Worries from the credit card processor and/or their lender that they won’t be repaid
The laundry list of situations that constitute a default makes it far easier for a buyer to “default,” which enables the lender to accelerate payment, penalties, and the like.
Continue reading “What You Should Know Before Taking a Loan From Your Credit Card Processor” Read more...
If collecting debts owed to your business is draining your time, patience, and resources, it’s time to consider hiring a professional. The internet is awash with ads for collection agencies that promise to obtain money for you, but their harsh and aggressive collection techniques could reflect badly on your business. That’s why it’s important to hire a reputable collection attorney that knows how to collect B2B debt properly.
Continue reading “How to Collect B2B Debt” Read more...
Should there be another court shutdown in 2021, you may be wondering how to maximize debt collection in 2021?
New York on PAUSE in March 2020, closed New York courts for almost all debt collection efforts. The need to get paid to stay afloat was not considered urgent enough to bring an emergency application (the only type of debt collection effort that was allowed during the shutdown).
Since then, the courts have reopened. Many, not all, court clerks have returned, offering the opportunity to process debt collection claims.
Continue reading “10 Ways to Maximize Debt Collection in 2021” Read more...
The route your debt collection case takes depends upon the nature of the debt, your underlying agreement with the client, their financial situation, and which NY debt collection options you’re open to. Factors that can impact your decision include the amount owed, the non-paying customer’s location, the underlying agreement between the parties, the customer’s financial situation, and the creditor’s attitude towards litigation.
Below are the debt collection options available in New York.
Continue reading “What Are Your Options for NY Debt Collection” Read more...