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.
Debt Collection Scenarios
Debt collection can have several scenarios, each case with its unique twist. Collegial relationships may cloud your thinking. A business’s relationship with its clients can become a double-edged sword. On the one hand, you have nurtured both a loyal customer and a friend. On the other hand, you may struggle with the prospect of having to put this customer out for collection.
In some industries, more than others, creditors come face to face with their buyers regularly. Due to the nature of the relationship, the lines may become blurred.
An example is the business of private education in New York. In many private schools, teachers and staff greet the children and their families daily. The private schools work hard to create an atmosphere that is warm and engaging, as if part of an extended family.
Another example is the role of confidant and advisor. The trusted CPA has worked with the client for years. The client invited the CPA to the client’s weddings, bar mitzvahs, and other life celebrations. The CPA may even felt it appropriate to attend a family funeral.
The cordial familiarity of the relationship makes it even more difficult for the school, accountant, or you in whatever your professional role to turn the claim over for collection.
Will Debt Collection Impact Your Company’s Reputation?
Perhaps you’re concerned that placement of the account for collection might in some way damage your reputation. You might also be concerned about alienating a good customer and friend. In situations such as these, the best course of action is to remove yourself from the collection process. You can accomplish this by engaging a NY debt collection attorney to handle the case. This saves you from having to confront the individual directly and makes it a professional transaction rather than a personal one.
Call it what you will — fear, anxiety, or reality in the digital age. Justified or not, there are forums for everyone and anyone to voice their opinions. When a client fails to pay, you may think twice before placing the account for debt collection. The digital roundtables, rating sites like Yelp, and other online communities that allow people to rate, berate, or challenge a business may give you pause. These rating sites can do damage to the reputation and credibility of an injured party, your company.
However, the possible backlash of doing what is right should not prevent you from collecting monies owed on the off chance that a debtor will take a shot at besmirching your reputation. But you have options.
You Have Options
Even if you’re not in debt-collection mode, you should proactively monitor your online presence to catch negative comments or ratings early enough to respond. You can have a fine reputation online and get the payment that’s due. Monitoring can alleviate some fear and anxiety associated with debt collection.
You have worked hard. Your concern about risking your reputation by placing someone for collection is understandable. And so is your shying away. But, have you considered that failing to enforce your rights to payment may put your business at risk? Being known as a pushover, too afraid to pursue payment, will get you more of the same type of clients — non-payers.
You already align yourself with strategic partners familiar with your industry to help in other areas. Do the same when selecting collection help.
For more information about NY debt collection attorney services, please reach out and we’ll review your case for collection.