Contractors will usually complete projects after a client puts a deposit down. This may cover their materials, but there's usually a balance left after the job is completed. While most clients will pay the balance due right away, some don't. This can leave the contractor in a difficult position.
One of the most important things a business needs to survive and grow is its revenue. That's the money that actually supports the needs of the business. It isn't enough to just have enough billable accounts. Instead, the company has to actually receive the money that it's due. Sometimes, businesses have to apply a little pressure to get clients or customers to pay up.
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.
It's not easy when you are forced to put an account in collections. People who owe your business money may be valued clients and require hand-holding, while any effort put into recovering what you are owed is taken away from projects and operations.
If you have put your passion into a business or a career, you probably want to focus on the positive even more than other people. After all, why think about the worse aspects of doing business when you love what you do? But open accounts in the red aren't doing anyone any favors.
Contracts and debts are part of doing business in America, and the nation itself was built on a delicate balance of assets and loans. It's always important to pay debts, though, as the consequences have gotten far easier to apply to the right parties as the electronic age improves records and response.
This federal law applies to debt collection agents, attorneys or companies pursuing payment of debts on behalf of the third parties that issued the original loans. The FDCPA grants rights to consumers in North Carolina that protect them from harassment, false statements and unfair practices. Most forms of personal and household debts fall under the purview of this law. Examples include medical bills, credit card accounts and auto loans.
Business owners in North Carolina may encounter a situation in which customers refuse to pay for goods purchased or services rendered. While it may be necessary to go to court to resolve the matter, this isn't always true. The first step in the process should be to send a debt collection letter. This letter should state how much is owed, when payment was due and what could happen if payment isn't received in a timely manner.
In most cases, business owners in North Carolina don't have to worry about customers not paying their bills. According to the Credit Research Foundation, delinquencies are rarely longer than seven days. However, if a customer is delinquent on a payment, it may take tact to resolve the issue. Treading too lightly may result in a customer who doesn't pay. Of course, being too mean to a customer may result in a lost relationship.
In North Carolina, businesses sometimes have trouble collecting on debts that are owed to them. If your business has had difficulty collecting payments that are past due, there are legal avenues to take.