Collections can be a time-consuming and frustrating process for any business. When customers don't pay their bills, it will have a significant impact on your cash flow and bottom line. That's why it's essential to have a proactive legal strategy to help you collect debts quickly and efficiently.
What is a proactive legal strategy?
A proactive legal strategy is one that anticipates and prevents legal problems before they occur. In the context of collections, this means having contracts in place that include language that transfers the burden of legal costs and fees to customers who breach or don't pay. It also means having an established relationship with an attorney who can pursue collections on your behalf so that you can focus on running your business.
Benefits of a proactive legal strategy.
There are several benefits to having a proactive legal strategy for collections:
- Reduced costs: When you have a proactive legal strategy in place, you're less likely to have to go to court to collect debts. This can save you significant amounts of money in legal fees and court costs.
- Faster collections: When you have an attorney working on your behalf, they can use their expertise and experience to collect debts more quickly and efficiently. This can help you improve your cash flow and bottom line.
- Reduced stress: Collections can be a stressful and time-consuming process for business owners. Having an attorney handle collections on your behalf can free up your time and energy so that you can focus on running your business.
How to get started with a proactive legal strategy.
If you don't already have a proactive legal strategy in place for collections, there are a few things you can do to get started:
- Review your contracts. Ensure that your contracts include language that transfers the burden of legal costs and fees to customers who breach or don't pay.
- Establish a relationship with an attorney. Find an attorney who specializes in collections and who you feel comfortable working with.
- Develop a collections policy. Create a policy that outlines your procedures for collecting debts. This policy should be given to all customers when they sign a contract with you.
Conclusion.
Having a proactive legal strategy for collections can help you save time, money, and stress. If you don't already have a strategy, contact us today!
