At some point, it becomes apparent that the debtor’s attempts at resolution are nothing more than delay tactics. Such is the case currently where a client placed a claim with us for collection. Our client is an independent contractor. He and the debtor company had been working together for well
As you look at your receivables, you ask yourself, how collectible is this debt? Every business owner understands cash and cash flow, so collecting a debt or dealing with slow payers becomes a part of doing business. Since the dawn of the simplest commerce in human communities, debt collection has
As with any industry, there are business advisors or debt settlement companies that evaluate a company’s finances and make suggestions to help ease the debt. The goal is to keep the company operating. They can negotiate with creditors or not. Fees paid can be either contingent upon a deal with
Disparaging remarks added to the sting of not getting paid is upsetting. What makes it worse is when a client fabricates a reason for non-payment, which is downright untruthful. You may know the drill. There is a quick flurry of emails back and forth; insults hurled from one to the
Debt collection is eventually an unfortunate byproduct of most commercial transactions. Extend credit to a customer for their purchase of goods or services, and they’re now in your debt. While most customers pay within the set terms, sometimes customers will be late, or they may even default entirely.
New York Supreme Court has a pilot program for the automatic referral of many debt collection cases to mandatory mediation. The program requires that all cases designated a contract matter (debt collection case) will go to mediation. This mandate is for cases not part of or assigned to one of the
Prospective clients regularly ask if we work on contingency fee arrangements in NY debt collection cases. In a contingency fee arrangement, the lawyer agrees to accept a fixed percentage, often one-third of the recovery amount, the amount finally paid to the client. Especially in debt collection cases, a lawyer considers several factors before agreeing.
What happens when a client wants to pay an outstanding balance from their future sales or services? Working with that customer had previously been profitable, but they’ve experienced cash flow issues. For those who wish to continue doing business with a customer who seems to be having difficulties, you need
It’s hard to know when to stop doing business with a non-paying client and start enforcing your rights to payment. Failure to make the decision can put you out of business. Smart credit policies protect you from doing business with those least likely to pay. And smart collection policy designs
Include joint and several liability clauses in your contracts to maximize your ability to collect monies owed. So, stack the decks in your favor by going after the customer with deep pockets. Rather than chasing customers with little or no cash flow, or several customers, you will want to include