Professional Debt Collection by Attorney

Tips for avoiding bad debt

1.  Do not perform your services or provide your goods until an agreement is actually reached.  This may sound simple, but many companies find themselves embroiled in a disagreement regarding payment once they have performed their part of the agreement.

2.  Always get a written agreement.  This can be done in the form of a contract if it is a one-time transaction or a credit application, or similar format, if there is a flow of business with the client.

3.  Get as much information as possible from each of your clients on a credit application, including the owner’s name, bank account information, and credit references.  Once it is signed, it may also be used as a contract should it become necessary to enforce the agreement you have made.

4.  Tie bonuses for salespersons to money actually received not sales made.

5.  Use tighter screening procedure, including checking with bank and credit references before granting credit.

6.  Communicate with customers who are past due.

 For more tips and ideas, please feel free to contact us.