In our most recent posts we’ve been discussing approaches to collections when customers are slow-paying or non-paying. In this post we’ll briefly discuss a three step approach to dealing with non-paying customers.

1. Communication
The most important thing you can do is communicate with your non-paying customer. Don’t just sit back and wait for them to suddenly send you money. Be proactive. Always be courteous and professional. When you call them be sure to leave only one message per day if you don’t speak to anyone directly. And never be terse or threatening. In addition to phone calls, send letters and emails to your customer regarding their debt and your intention to collect it. Keep notes and copies of all your communications.

2. Hire a collections attorney
If your own efforts at communication fail to achieve results, hire an attorney who specializes in collections to send letters and/or emails to your customer, or even make calls. This escalation will indicate to the client that you take the matter very seriously, and that you are potentially willing to take all legal steps necessary to collect money owed, including going to court.

3. Going to court
If all the above avenues fail, you can sue for the money owed by filing a claim in court. If you prove your case, the court can issue an enforceable judgment to obtain the amount(s) owed to you.

Your goal is not only to collect the money owed to you, but to also maintain a good relationship with your client.

The Jayaram Law Group routinely and successfully assists its clients in their business-to-business (b2b) collection needs.  We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.

 

If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting www.jayaramlaw.com.