The Benefits of Using an Attorney for Commercial Collections

When you are a landlord or other type of business providing products and services to other businesses, you expect most transactions to run smoothly. After all, business people are sophisticated enough to know what they are agreeing to and to pay when payment is due. However, expectations can be far from reality. Businesses often fall behind in payment for a variety of reasons. Unfortunately, this puts you in a tricky situation. How do you get your money? While you may be tempted to turn to a collection agency, it may be advantageous to work with an attorney for your commercial collections instead.

The Advantages of Using an Attorney versus a Collection Agency

While collection agencies can be helpful, they are limited in what they can do by law and their own general practices. Many of these businesses only have one straightforward approach to handling debt collections. First they will send a series of generic letters and then move on to phone calls and pre-recorded messages. This can be less than optimal in a tricky situation that requires more of a nuanced touch. It may also be redundant to what you have already done.

If you are not being paid because of a contract dispute, a collection agency will not be much of a help to you. They can only reiterate to the debtor that it owes a certain amount of money. Meanwhile, an experienced attorney can better respond to contract issues while also focusing on obtaining as much payment as possible. If your issue needs to move forward in court, your same attorney can represent you.

Additionally, there are circumstances in which it is not realistic to expect payment in full. If your customer or tenant has closed down shop or filed for bankruptcy, you may be looking at receiving cents on the dollar. While a collection agency cannot advise you on best next steps in this situation, an experienced debt collection attorney can.

Utilizing Different Approaches Collections

One of the ways to increase your receivables through the collections process is to vary the approach depending on the customer and the circumstances. Many individuals respond to a softer, more understated approach. This approach looks to identify the cause of the late payment or dispute and then reach a solution. A soft approach may be essential for long-time customers whose business you want to keep. While you may worry that an attorney will be aggressive, collection lawyers understand the need to maintain business relationships. They can move forward with the collection process confidently, yet without hostility.

However, there are also times that require a firm hand. If you have had it with the delay in payment and you are not concerned with continuing the business relationship, an attorney can take a hard approach to the collections process. This may include using a far less friendly tone with the debtor as well as moving forward with a legal claim sooner rather than later.

Contact a West Palm Beach Creditors’ Rights Attorney Today

If you have one or more clients who have fallen behind in payments, contact the proven creditors’ rights attorneys of the Law Offices of Larry E. Bray, P.A. in West Palm Beach at 561-571-8970. We have years of experience helping business collect debts.

Resource:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0500-0599/0559/Sections/0559.544.html