A well-run business can suffer when its vendors and contract holders fail to make timely payments on their agreements. When a Fayetteville business finds itself holding unpaid debts and struggling to make ends meet, it may wish to take action to compel payment on what it is owed. A collections attorney can help it make good decisions about possible collections’ methods for getting paid and getting back into the black.
This post will introduce several ways that businesses can seek collection of the debts others owe to them. It does not provide any legal advice or suggest that any or all of the discussed methods will work for readers and their businesses. Debt collection is an important topic that business owners can discuss with their trusted collections attorneys.
Out-of-court collections efforts
It should be noted that all of the efforts discussed in this post can be done with the help of an attorney. A lawyer that handles collections efforts can provide their business client with advice on:
- Writing a letter to address the debt
- Offering to settle a debt for less than is due
- Establishing a timeline for repayment of a debt
Any agreement that a business makes can and should be reviewed by a legal professional, and associating counsel on collections matters early in the process can make it easier for a business to seek repayment as it transitions through different collections options.
Legal collections options
When a business and its attorney cannot settle or procure debt repayment out of court, the matter may have to be elevated to legal action. A business may have the right to sue for repayment based on its contract with the delinquent party, or to seek other remedies to be made whole. Litigation is the process of taking a legal matter to the court to have a judge to decide how the matter should resolve and which party carries with it the liability for the claim.
The options a business can pursue to collect on its owed debts are extensive. Not all options will work for all businesses. Advice from a trusted attorney can support the needs of businesses and help them recover the debts they are owed.