Businesses often suffer when they have to deal with unpaid debts. Not only is it a hassle to try and track down the person or company who owes you money, but it can also lead to financial losses. Our Seattle business law team will provide five tips to help your business collect unpaid debts and recover from financial losses. As well as the importance of having a business law team on your side!
One of the most important ways to get what you are owed is by being professional about your approach and manner when dealing with those who owe you money. For example, sending them an invoice via e-mail may be better than a hand-written letter because it looks more organized and formal. You should also promptly follow up with the debtor and remind them that you are owed money.
Use Software to Your Advantage
With computers, businesses can now use software programs to help them collect debts on their own behalf. This reduces the need for businesses to hire debt collectors or lawyers. Some examples of these software programs include Collect!, Astute Summation, Software Business, and more.
Contact the Debtor's Property Owner
If the debtor is a tenant, contact their landlord. This forces them to deal with the problem rather than ignore it because they will lose their tenancy if the debt is not paid soon enough. The tenant then may be willing to negotiate how much they can pay each month to creditors and how long it will take to pay off the debt.
Keep Track of Your Collection Efforts
A few things that businesses do not realize is that holding on to documents, like invoices, can help them in the future if they need to prove their case against someone who owes them money. Having records of the debtor's financial statements and other documents will be useful if the debt is not paid soon enough.
Hire a Business Attorney
If you are concerned about how to collect unpaid debts, consider hiring a business litigation attorney who specializes in this area of law. Our team can provide legal advice, review contracts and documents that may impact your case, and more. We can also help you determine what you need to do to recover damages if the debtor has also caused you financial losses.
Contact our business litigation lawyers today at (206) 565-0090 to schedule a consultation!