In business and life, there’s little worse than not getting paid for the goods or services you provided. You may do your best to honor your agreements, but you can’t always expect the same in kind. So how should your business go about getting the money you’re rightfully owed? Before you think about taking your lumps and writing it off, read this.
Collection Agencies Versus Attorneys
You know as well as anyone else that no one likes debt collectors. Despite rules and regulations limiting how they can pursue a debt, things can get pretty intense between a collection agent and a debtor. Debt collectors often seem very threatening, will call an inconvenient number of times, maybe at all hours, while the debtor does their best to evade them. In some cases, the exchanges they do have are not pretty.
While it seems tempting to get some muscle behind your demands, this solution isn’t necessarily the best because frankly, it doesn’t work. Someone who owes money is less likely to hand it over when they feel like the person demanding it is harassing them.
Technically, attorneys and law firms can be considered debt collectors, if this is primarily what they do. Still, there are some important differences that make consulting commercial litigation Toronto preferable to the average agency.
The first one is rather obvious. Unlike many agents, lawyers are very well versed in your options concerning legal recourse, and will advise accordingly. Furthermore, while they can take steps that other debt collectors do, they can do even better by filing lawsuits against those who owe. This can result in liens, garnishments, and more.
How to Choose
Even if you think you want to go with a debt collection agency, you still need to talk to a lawyer. They’ll let you know if you’re in the clear to proceed, if it’s even worth pursuing. From there, they can use what may be their biggest advantage: authority.
When a debtor receives a letter from a lawyer, they’re apt to take it much more seriously than regular collection letters. The mere thought of having legal action taken against them might be enough to get them to settle up.
No matter which you choose – and you may go with both – another important consideration is your line of work. You want any law firm or agency to understand your business, and to have hopefully collected for other businesses like it. Just as you would with any other person or company whose services you might need, look into their experience and get a feel for their reputation.
The other big consideration is budget. How much will it cost to pursue the debt? If the number comes close to what you’d get, assuming the debtor paid up, it might be worth passing them over for someone else.
In the end, pursuing what’s owed to you is completely worth it when you choose the right attorney. Once you do, you’ll be able to sit back and take a breath, knowing that they have the technique and persistence to bring your money back to the business.