When you operate a small business, you are juggling many responsibilities at once. From building business strategies that increase revenue to marketing responsibilities, to the everyday handling of staff and management, there is a lot on your plate to keep your small business running smoothly. One of the most frustrating parts of your role as a small business owner may be collecting debts from unpaid services rendered to clients.
One way the Doyle Law Offices can help your small business is by taking on the task of collecting debts for unpaid invoices. Our Cary and Wake Forest small business debt collections attorneys have experience helping businesses like yours settle overdue accounts so that your business receives the money you are owed. In this post, we will offer tips and guidance on how you can absolve your small business debt and maintain your business growth.
What is a Debt Collections Attorney?
A collections attorney is someone who can collect unpaid debt on your business’s behalf through a number of legal strategies. Working together with your collections attorney, the goal is to develop strategies that will recover debts from your unpaying clients.
A debt collections lawyer will:
- Fill out and file paperwork on your behalf.
- Send letters and/or make phone calls to debtors.
- File a debt collection lawsuit for you.
- Represent you if the case goes to court.
- Retrieve your owed debts more effectively than a collections agency.
When Should I Hire a Small Business Collections Attorney?
There are many circumstances where a small business may need the assistance of partnering with a collections attorney to settle debts. In situations where you and your business have provided services to a client, but their account remains unpaid, it’s important to your business that you receive the money you are owed. Unpaid accounts can lead to financial obstacles or even ultimately destroy a company over time. Your client agreed to pay for the services you provide, therefore, you are owed the cost of the services provided.
If you have accounts that have remained unpaid without success after contacting your overdue clients, it is likely time to contact a small business collections lawyer. There are many common reasons companies contact our debt collections attorneys at the Doyle Law Offices. For instance, if any of the following applies to you, it’s time to contact a Wake Forest area collections attorney:
- You need to send legally sound demand letters.
- You think the case may need to go to court.
- The client’s debt exceeds $5,000.
- Your client is a business that also has legal resources.
- You are in need of legal advice or any debt collection assistance.
Hiring a Debt Collections Attorney vs a Collections Agency
While a debt collection agency can certainly be effective at collecting outstanding payments from your clients, their capabilities do not extend much further than yours as a business owner. Debt collection agencies are not staffed with lawyers, nor can they suggest legal action against your unpaying clientele. The most they can do is send letters and make phone calls on your behalf, without the use of legal language and legal recourse that a debt collections attorney has the ability to use.
Benefits of Using a Collections Lawyer vs a Collections Agency
Not only are collections attorneys more successful at securing payments for unsettled accounts, but they also offer other advantages when compared to a collections agency.
The benefits of hiring a collections attorney over a collections agency are:
- Cost: Most collection agencies will collect between 25%-50% of your debt after payment is received. While a collection attorney will also charge a percentage of the debts secured, oftentimes a judgment ruled by the court in your favor will pass the collections attorney's fees onto the debtor.
- Likelihood of payment: Once it becomes clear that a debtor is not going to pay off their invoice, the only real chance you have of securing payment for your services is through legal action.
- Faster resolution of payment: Debt collections attorneys are able to use resources to move a case quickly along that debt collections agencies do not have available to them. From legal documentation letters with effective payment deadlines to filing a lawsuit that indicates a court date, when a collections attorney is involved in collecting outstanding small business debts, there is a speedier resolution.
What to Consider When Hiring a Small Business Collections Lawyer
If you decide to use a small business collections attorney to help you secure payments for outstanding, unpaid accounts, there are a few factors to consider. It’s important that you seek legal assistance from a collections attorney who has past success in securing payments from debtors for small business clients.
At the Doyle Law Offices of Cary, NC our small business law attorneys have years of experience working with professionals in a variety of fields, such as:
- Spa owners
- Fitness clubs
- Construction companies
- Architects and engineers
- Accounting firms
- Marketing agencies
- Transportation companies
- Landlords and property owners
- Retail stores
- Banks and credit unions
- and more!
Hiring a debt collections attorney who has the experience and past success in securing payments from debtors, and who specializes in debt collections is vital to finding a resolution to outstanding accounts that need to be paid to your small business.
Contact a Cary Small Business Collections Attorney Today
At the Doyle Law Offices, our small business debt collections attorneys can take on the responsibility of contacting clients who have not paid their debts for services provided by your business. We can take legal action to ensure that you and your business receive the payments for services that you are owed.
Contact our Cary and Wake Forest area debt collections attorneys today at (919) 228-4487 or fill out the form below to schedule a consultation.