Ways to Demand Payment, before calling attorneys
Step one in collecting unpaid money is to send a statement or a letter requesting payment of the bill. Some companies usually wait for 60 to 90 days to pay bills due to their own cash flow issues. If this is the approach of your client, they might be prompted to make the payment when you send them a regular collection letter.
You need to get personal if letters produce no results. Withholding payment from an acquaintance is more difficult than from a stranger. Because of this, collection letters should not be the only approach. Call the client. In big companies, you might have to contact the purchasing or account department. If there are no satisfactory results there, go up the hierarchy all the way to the president if necessary.
Tell them that your cash flow is critical to your business and the outstanding payment is holding your business back. Phone calls not working? Make an appointment to see the person who is responsible for paying your check.
Don’t give up
The squeaky wheel often is the first to get paid when it comes to debt collection. A client who is in a financial bind and can only pay one creditor will usually pay the one making the most noise. But you should never make threats, lose your temper or harass the customer otherwise. Doing this might land you in legal hot water.
Letter, phone calls and personal meetings still not working to get your money back? Here are a few other things to consider. (continued)
Marcadis Singer, PA, is a Florida based law firm dedicated to debt collection. We work with attorneys that are owed money, as well as entrepreneurs, small businesses, and large financial institutions. The entire focus of our practice, is recovering debt for our clients. Call today for a consultation.