5 Commercial Litigation Guidelines for Debt Collection

As a business owner, you may be faced with a challenge in which you have to recover debts owed to you by an outside business. Whether the company was a client or a partner firm that you had a working relationship with, it can be difficult to retrieve payment from the company directly.

That’s because you still have your day-to-day company activities to manage. You have to deal with upcoming company events in terms of planning and ensuring a return on investment. You often don’t have time to chase old accounts. In this latest post, we’ll highlight the top five reasons to work with a commercial litigation lawyer on debt collection.

1. Understand the steps required

There are specific steps you must adhere to if you wish to receive payment from the company. If the company doesn’t respond to your requests, and you have a valid legal claim to the money owed, then the lawyer can guide the process. A commercial litigation lawyer can go through the various legal elements to prove your case. They can make sure documents are filed according to the law and that the client responds to your requests for payment in a quick timeframe.

2. Mistakes can lead to further legal trouble

It’s not uncommon for clients that won’t pay their invoices to file for counter legal claims when they feel they are being intimidated. If you don’t know the law regarding debt collection, you can fall foul of it. This might mean that the company claims you are harassing them, or that they claim you are causing harm to their reputation with any information that you share online. It’s important that you consult with a commercial litigation lawyer to ensure you take on this process with an effective legal approach.

3. Threats of legal action are taken seriously

One of the leading mistakes business owners make when trying to collect debts is continually wasting their time emailing and calling the company in question to ask them for payment. While this might annoy the people answering the phone, it’s unlikely to lead to payment. Threats of legal action from a qualified lawyer are taken far more seriously. When your commercial litigation lawyer sends the client a request for payment, they are likely to respond and ask for options. It’s then up to you how you would like to proceed.

4. A lawyer gives you legal options

You can work with your commercial litigation lawyer to offer options to past clients who have yet to pay their bills. The lawyer can draw up contingencies when payment terms are not met and then help guide you in ensuring the maximum return on your investment in their services. The legal options will be important in communicating with the former client. For example giving them expertly-created legal pathways can make the process seem easier, ensuring they are more likely to respond to your payment request and to provide a formal end to the issue.

5. Can reduce your costs

While many people believe that legal services are too costly for them, some legal work can actually help to reduce business costs. For example, if you’re spending the vast majority of your time chasing late payments, you’re not focusing on your company, which could lead thousands of dollars in lost productivity. Simply hiring a lawyer to take care of the issue can help keep your organization moving forward while the matter is settled.

Work with experts in your area to find that ideal solution to your payment issues. Make sure you find an experienced commercial litigation lawyer with a clear understanding of your case.