Operating a business involves a multiple aspects, but the base for any business is that the business you are operating provides products or services and the client offers a payment in return for the goods. These clients can either be individuals or other corporations. While this is how the process is supposed to go, there are occasions where the payment is not completed and this can put your company in a difficult situation.
For the purpose of protecting the rights and owed debts of businesses, there are many companies and law firms that offer debt recovery services. The emergence of such collection services allows the business owner to focus on running the company instead of always having to pursue clients for payments. There are multiple steps when it comes to the process and most of these steps include the option of seeking legal issues against the debtor. The first stage is called the demand for payment. As the name implies, it is the stage where you send a letter demanding what you are owed. The importance of this stage cannot be stressed hard enough as most of the time, the debtor would offer the payment at this initial stage.
While you might have sent multiple such letters from your company to no avail, the sending of such a letter from a collection company carries more weight. This shows the debtor that you are serious about the payment and that there is a high chance you will seek legal action. When it comes to commercial collection of debt, investigative techniques can be applied to find debtors figure out methods of obtaining the payment. If such non aggressive method brings no success, you can consider filing a payment recovery lawsuit against the company or individual who owes you payment. This is another advantage of having a firm or attorney handling the collection process. If it is necessary to go to the extent of filing a law suit, the attorney will be qualified with the process and will be able to represent you at courts. If you have been recruiting the services of a debt collector, they would direct you towards a competent lawyer who can handle your case.
In the event that the debtor does not reply to the law suit, then the default judgment will be passed in favor of you. In the case that the debtor replies, the usual stance would be denial. If the judgment is in your favor, sometimes you might have to think of ways to force the payment. Such methods include gaining possession of the debtor’s property and such.