There are a lot of critical elements that contribute to the success of any business. Money is one of them. Some might well argue that it's most important element. If you're not making money, you aren't going to be staying in business very long.
To be sure that money is coming in, you have to be sure that the revenue stream never dries up. And one tributary feeding that stream at one point or another is likely to be money that is owed for goods and services already delivered.
Where legitimate debts are owed, you have a right to collect them. And the law is there to back you up, as long as you go about the process in the right way. Getting help from an experienced attorney is a good first step in making sure that path is followed.
In some cases, it might be necessary to engage a professional debt collection agency to support your cash flow. Here again, it's important to make sure that the firm you hire is ready to do things in accordance with the law. Many experts agree that there are specific things to look for to be sure the job gets done responsibly, professionally and in a way that maintains your company's good name.
- Proper licensure, bonding and insurance. These are easy to claim, but each state has different requirements. They can be checked.
- Experience in your field. A company with deep experience in collecting student loans might not be best for collecting on business-to-business debt.
- Type of experience. If your debt is 15 days overdue and amounts to $300, you might not need the same level of action required for a $30,000 debt that is 180 days past due.
- Openness about processes. Is the firm ready to share how customers will be contacted and how often? You have a right to expect regular updates on progress. And, getting back to the reason for all of this in the first place, is the firm clear on how you will be paid?
As important as cash flow is, it's clear that care in collection is required.
Source: Forbes, "Need to Hire a Debt Collector? Here's Some Practical Help," Stephanie Eidelman, accessed Dec. 11, 2015