Debt Collection Attorney to Author E-Book
Our debt collection clients have been asking our debt collection law firm questions about collecting their past due accounts. There are common patterns in the debt collection cycle. We decided to begin putting together an e-book on debt collection to try and help our clients maximize their recovery of account receivables. The debt collection book will discuss internal company credit and collection policy and procedures as well as what to expect when an account is turned over to a debt collection attorney. Below are several paragraphs from the book. As we progress with written the book, we will post excerpts as they become available.
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Internal Collections
Whether your company has full time employees assigned to credit and collections or if you are a sole proprietor managing this task, it is important to have internal collection procedures in place. Be proactive when it comes to collecting the money that your company has earned by providing services or for the goods sold and delivered to your customer. Make sure that you provide an invoice at the time of providing the service or at the time of delivery of the goods sold and delivered. If the invoice cannot be generated immediately make sure that an invoice is generated within the first forty-eight (48) hours.
If payment is not received from your customer within the payment terms you have established, do not hesitate to make a phone call. The first call can be as simple as determining whether or not the invoice was received by your customer. You would be surprised that by simply calling to see if your invoice was received will move the invoice up on your customer’s payable list. The phone call also helps establish a rapport with the customer and perhaps some repeat business. Most customers will be glad to hear from you, talk about the product or service. You will find most of your customers will even tell you a check is being mailed on a date certain. Make note of when payment was promised and if not received within a reasonable time after that date make a second call.
Debt collection law firm
Unfortunately, in some instances during the initial call, this may be time that you may pick up on the fact that your customer may be struggling and will not be paying the receivable in a timely manner. Depending on the nature of the call you will be able to determine if your customer is sincere in its desire to pay your company or is ducking the obligation. During this call make notes of what your customer may tell you. If a reasonable repayment plan can be established, confirm the plan in an email. Ask your customer to confirm the debt and repayment plan. This may prove useful later down the road if the account has to be turned over to a lawyer for suit. Remember, the goal is to get paid and receive repeat business. In an ideal world this would be the case. However, in today’s economy, this is not always the case.
Send a statement of account to customers with balances over thirty (30) days old with a handwritten note simply stating “Please be so kind to pay your balance.” This is another gentle reminder that payment is past due and that payment is expected. If payment is not received within forty-five (45) days, place another call. This is the time where it will become apparent if payment will be forthcoming, if payment terms need to be discussed or if it is time to turn the account over to a third party to assist with collecting your money.