Collecting debt the right way is good for business

 Posted on February 14, 2018 in Uncategorized

As a small business owner, collecting money people owe you is a part of doing business. In many cases, people will simply pay what they owe without issue, but there are times you will have to deal with difficult customers who refuse to pay for services rendered or products received.

In cases in which there is a dispute over owed balances and collections, you may find it beneficial to seek a full understanding of how you can protect your rights as a business owner. You have the right to take appropriate measures to secure the money owed to you, but it is prudent to know what you can and cannot do as you undertake this effort. Many Texas business owners find it beneficial to seek legal guidance as they pursue a beneficial solution for collections disputes.

Why won't people pay?

There are several reasons why a person may not want to pay you, even if he or she clearly owes you money. Some of these reasons include the following:

• The person simply wants to avoid paying at all costs, regardless of how much they owe.
• The person owes too much to too many different people and is trying to lessen the impact of paying it all at once.
• The customer is experiencing financial difficulty and is unable to pay due to his or her current circumstances.

There are times when it could be appropriate to work out payment plans and make other arrangements for loyal customers who simply need a bit of support. However, in cases in which a person is looking to avoid paying at all costs, it is helpful to know how to navigate the collections process.

Collecting debts the right way

There are laws that protect the rights of individuals who owe debt. The Fair Debt Collections Practices Act protects the rights of consumers, but there are ways you can collect debt that are effective, fair and legal. Phone calls, letters and other means can help you secure the money you need, but you need to ensure you do not violate any regulations set forth by the Act. An attorney can help ensure the language you use and the methods you go about seeking remittance are in accordance with the law.

Whether it is a dispute with a customer over money owed or you simply seek guidance regarding the best way to deal with collection matters, you do not have to do it alone. You may find it helpful to seek an evaluation of your situation and the needs of your business in order to understand the various options available to you regarding collections, collections disputes and other business law concerns.