Why Use an Attorney Instead of a Commercial Debt Collection Agency?
The attorney’s primary vehicle for recovering delinquent commercial debt is the lawsuit. A lawsuit is a powerful tool when it comes to recovering outstanding accounts receivable. A skilled and experienced commercial debt collections attorney will craft a lawsuit specifically designed to set forth your claim and your legal right to recovery. Generally speaking, lawsuits command attention and, in many cases, can spur an otherwise recalcitrant debtor into paying a debt. On the other hand, it is important to recognize that a collection agency cannot take direct legal action against a delinquent debtor.
Attorney Collection Fee
The Law Office of Joseph M. Adams offers flexible fee arrangements to clients. In many cases, collection matters are taken on a contingency basis. That means the lawyer only gets paid upon the successful recovery of monies owed. The attorney fee is usually calculated as a percentage of the amount recovered. In other cases, clients may wish to pay on an hourly basis.
When attempting to recover an outstanding commercial debt or delinquent accounts receivable, it is a good idea to first assess the business relationship between the creditor and debtor. In some cases, customers may have all intentions of paying a debt or invoice but are experiencing temporary cash flow problems. In such situations it may be advisable to take a soft approach with the customer and reach an amicable work out or settlement. Taking this approach can be best for “goodwill” purposes and keep a profitable business relationship intact. Using an experienced and knowledgeable lawyer will help you strike the appropriate balance between putting pressure on a well-intentioned customer to pay its bill and demonstrating a level of understanding consistent with maintaining an ongoing amicable business relationship. When you use an experienced attorney in this situation, you are removed from having to deal with the unpleasantries attendant with asking people to pay their bill and can focus on your business.
In other cases, more aggressive collection efforts may be warranted. Some customers may simply be looking to get something for nothing and have no intention of paying their bill or invoice. There is no business relationship to salvage and prospects for future business opportunities are slim. In these types of cases, aggressive legal action should be taken without delay.
Regardless of the particular type of customer or debtor you are dealing with, an experienced and knowledgeable lawyer can adopt the appropriate tone and course of action to handle your commercial debt collection case and maximize your prospects of recovery.