No one goes into business thinking about debt, but it’s a big part of how capital moves around. Many business owners remember going into debt just to make their dreams a possibility. So that can confuse issues when you are the one who is owed and you need to find ways to collect.
- What are the options if someone hasn’t paid?
If businesses find that a client or contractor has not only delayed but failed to pay bills, the managers or owners may send an account to collections. This can mean a variety of things, but it largely has to do with acknowledging it is less likely to get paid the longer time goes on without payment or communication.
- Who is empowered to enforce collections?
That varies from a law enforcement officer like a sheriff to private entities that businesses can engage to help collect. That side of things often includes collection agencies and debt buyers.
- What’s the difference between a collection agency and a debt buyer?
A debt buyer will generally offer you a portion of the amount owed in exchange for the burden of debt as well as the authority to pursue the debtor. A collection agency, however, will take a portion of the proceeds if it gets a debtor to pay while you retain the burden of the debt.
- How can I work out the best option?
An attorney can also help enforce collections or advise on how to handle them for business clients. Legal representation may also help businesses plan for collections to make them less necessary as the enterprise grows.