Item: SAC Attorneys LLP
Rating: 5
Author: Cynthia F.

Effective Business Debt Collection Practices

Businesses rely on revenue from a variety of sources to ensure ongoing success, and as a means to pursue growth. However, when that revenue is slow to arrive due to non-payment for goods or services received, or other reasons, it is important to implement sound debt collection protocols and prevent your operations from suffering due to outstanding debt.

Take Steps to Collect Debts

Once an amount owed becomes overdue, it is important that a business implement a strategy to initiate collection of that debt or hire a knowledgeable professional or team that can create and implement an effective plan on its behalf. It might surprise some that there are companies that go out of business because they simply do not know how to pursue the money they are owed. Here are some basic steps to take when collecting debt:

Make a friendly reminder. Whether with a phone call, email, or even a letter, remind the customer that they have an outstanding balance. In the event the debt is due to an oversight, include payment options and contact information to expedite remittance.
An “overdue payment reminder” is a more formal communication that one can send if the friendly reminder fails to elicit the desired result.
If no follow up communication or effort to set up payment is received, it is time to send a Final Notice that informs the client of the amount owed, time overdue, and possible methods of payment.
Make personal contact. While this may be uncomfortable for one or both parties, sometimes a face-to-face conversation is the right next step to obtain payment.
Submit a formal letter of demand for payment. If nothing else has worked, this may be a last resort prior to more aggressive collection techniques.

One additional step a business should take is ceasing to continue supplying the delinquent client with ongoing goods or services. Sometimes cutting off supply is enough incentive for some to make payments, but it also prevents your business from extending credit to a client that has yet to pay past amounts due. If basic debt collection strategies are ineffective, it may be time to seek the help of an experienced and knowledgeable business debt collection professional.

Let a Reputable San Francisco Debt Collection Attorney Help Your Business

If your business has difficult collecting monies owed from clients or sums due as a result of other financial transactions, it is important not to allow debts to age for long periods of time. Work with an experienced and knowledgeable California debt collection attorney to implement an effective collection plan. SAC Attorneys LLP builds and executes debt collection programs that meet your specific needs. Contact experienced Silicon Valley business and debt collection attorney at (408) 436-0789 to schedule an initial consultation to discuss your case.

Sources:

Debt collection methods and techniques

★★★★★

Mr. Cai Is a Diligent Attorney. My sister and I were defendants in a civil litigation case. We hired James Cai and his law firm, SAC Attorneys LLP. Mr. Cai is a diligent attorney and responded to our questions in a timely fashion. He and his staff were very helpful in keeping us informed of the proceedings of the case and in explaining each step. Mr. Cai is also very conscientious of fees and costs, and avoided unnecessary charges. The results of the Summary Adjudication sided with us. The Court Trial resulted in the “Final Statement of Decision” and “Judgment after Court Trial” overwhelmingly siding with us. Cynthia F.

I Am Truly Impressed. After spending a significant amount of time, money and efforts with my previous counsel at a larger law firm without getting meaningful results, I transferred my employment matter to SAC Attorneys LLP. The attorneys there were able to understand the complex situations of my case and put together an aggressive litigation strategy. We were able to file a compelling complaint within a week and forced the opposing party, which was represented by one of the largest law firms in California, to make a substantial settlement offer shortly thereafter. I am truly impressed by the no nonsense and results oriented approach by SAC Attorneys LLP attorneys. A job well done! X. Gao

They Took Time to Understand Our Technology. I am the founder of a bioinformatics start-up in the Silicon Valley and chose SAC Attorneys LLP as our corporate counsels. Their attorneys have great experience with high tech start-ups and were able to offer a highly competitive service plan while not sacrificing a bit of their quality of services. They took time to understand our technology and provided value added services by introducing investors and job candidates to us. We regard our attorneys at SAC Attorneys LLP not only as our legal advisors but also our venture partners. Dr. Pete S.

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