Debt collection lawyers are the last people you think about when you’re dealing with clients who’re slow to settle their accounts. Most have every intention to pay the outstanding balance but some will test your patience. Unfortunately, those are the clients you have to watch out for because they’ll drag their heels in hopes of you giving up. You might even be tempted, but your business can’t afford to be so generous.
So, when should your business call in debt collection lawyers?
Zero communication from the client
A lot of businesses drag their heels when it comes to debt collection because it’s an awkward subject. Sometimes, people fall on hard times and don’t have the option to pay the full amount owed upfront. Of course, when a client doesn’t share that information with you, you can’t act on it. So, it is important to send out an invoice and payment reminder a week or two after the payment is due.
You could also send out a second reminder if the balance isn’t paid (and you hear nothing from the client) within thirty days. However, debt collection lawyers should be called in fairly quickly simply because they can sometimes prompt a response from the client. For instance, a formal letter from a debt collection lawyer might be enough to encourage payment.
Clients refuse to pay
Debt collection lawyers should be called when there is a refusal to pay. While things can be said in the heat of a moment, it can be easier to step back and let a professional handle the situation. It keeps the process clean and avoids unnecessary confrontations between you and the client. Sometimes, payment will be forthcoming and the matter settled immediately; unfortunately, that doesn’t always happen.
Debt collection lawyers are there to deal with the matter every step of the way. It can be easier for you and your company. On a plus note, it keeps things above board because solicitors know how to proceed in these situations.
Are debt collection lawyers always necessary?
People fall on hard times. However, there is a difference between a client that is willing to pay and one that isn’t. For instance, if you’ve set up a payment plan for a client and they’re sticking to the agreement, solicitors won’t be needed. Of course, some think they can use goods or services without paying for them. Some will intentionally drag their heels and refuse to speak to you; that’s when debt collection lawyers are needed.
Don’t blur the lines
Recovering debt is never easy in business. While there are genuine hardship cases out there, some just don’t want to pay. So, take a step back and let a debt collection solicitor sort out the problem. They’ll handle everything so you can focus on the business. Debt collection lawyers are there to help, so use them.