Small business owners know how difficult debt collection can be. Collecting debts is one of the main failing points many businesses throughout the country experience. One of the main hurdles that small businesses go through is learning how to get money from non-paying clients. However, with a little practice and courage, you may be able to lessen the amount of late payments clients owe your business. Furthermore, it can even help you develop an understanding of when to expect non-payment from a client. And with some planning, you can reduce late payments and come up with a business plan that lets you know the right time to go for a collection.
Effective communication with clients who owe you money can help you settle the debt amicably. However, after five invoices have been sent, phone calls have been made, and emails sent, what more can a small business do to get money from non-paying clients? Do you seek the help of a debt collection law firm?
Fortunately, there are several tools a small business can utilize to collect debt. The following are three ways small businesses can collect debt.
Mediation to Get Money from Non-Paying Clients
First of all, both parties can bring in a neutral third party to assist in reaching an agreement on when the debt will be paid and how. This form of resolving the issue is for parties hoping to remain on good terms. Hence, mediation is a private process. The mediator encourages both parties to be as creative as possible to reach a form of agreement away from the courts. If both parties reach an agreement, the mediator seals the agreement with a written document, which is irrevocable and binding. Both sides often use attorneys to fulfill this role.
Local County and Hot Check Division
Additionally, a business can receive a hot check with non-sufficient funds. This can be devastating; but remember when this occurs that all is not lost. Fortunately, most counties in Atlanta have a hot check division in the local county attorney department. Its job is to return money that non-paying clients owe that they previously refused to pay. This service will help you to get your money. Bring the check to the hot check division after you have contacted the hot check writer and he/she has refused to cooperate. However, you must accurately identify the person who issues you a check by writing the person’s driver license number and state of issuance on the face of the check. Finally, the court will issue a warrant of arrest.
Using The Legal System
It may be necessary to use the court system to get money from non-paying clients. A debt collection lawyer in Atlanta can file your case in court. A court will assist you in establishing a method to retrieve what is owed to you. This route of collection requires you to obtain a judgment from either a district court or the county court with the help of a debt collection firm. The judgment can give you a writ of garnishment. The writ then gives you the authority to collect the sum owed to you from the debtor’s bank account. In addition, a judgment can also give you a writ of execution on personal property, which lets you use a court official to confiscate some kind of property from the debtor.
Each method gives you the ability to collect the debt owed to you and can be rewarding. But there must be a balance between costs and the amount of debt recovered. Perform credit checks and background checks early on to prevent these problems from arising. For more help with getting money from non-paying clients, contact Georgia Debt Collection today.