Collecting on Customer Debts
While the majority of your customers will pay on time and in full, there will be occasions when you and your business will have to deal with overdue invoices and outstanding payments. Collecting those debts requires knowing what kind of steps to take, and what measures you’re allowed to employ.
How Much Should You Settle For?
If you decide that settling for less than owed is a good option, you need to think about the amount you would be willing to accept as well as whether the repayment will come as a lump sum or through a payment plan. There are several factors that you can weigh.
- Do they owe you for a physical product or services? Have you fully delivered?
- What were the hard costs to deliver the product or service?
- What is the nature of your relationship with the debtor? Do you want it to continue?
Every financial situation is different and it’s wise to consult with an attorney experienced in debt settlement. with a LegalShield membership, you can have your provider attorney help you draft the appropriate debt settlement paperwork once you’ve come to an agreement.
Types of Loans
Based upon your needs and your credit, there are several different types of business loans or financing you can seek, including (but not limited to) term loans, SBA loans, a business line of credit, and business credit cards. Depending upon the type of loan and the institution, these loans can be secured by collateral or unsecured, but either way, the lender expects repayment based upon the agreed-upon terms and schedule.
If you’re struggling to repay a business loan, a debt collection attorney can help you in dealing with lenders or debt collection agencies. In addition to negotiating with creditors and agencies for debt relief, either by a reduced loan principle or an extended timeframe for repayment, an attorney can prevent threatening or harassing behavior from debt collection agencies. If you’ve already been sued by a creditor over your unpaid debt, a small business debt provider attorney can represent you and present any defense or counterclaim you may have against the other party.
Have an Attorney Settle a Debt For You
Keeping a cool head when you’re in the middle of a dispute over money is not easy. That said, remaining calm and being reasonable can help you during the process.
Whether your business is owed money or another entity is claiming you owe them money, having an attorney handle the settlement negotiations can not only lead to a positive outcome, it can reduce your stress.
If you join LegalShield, you can be on the phone with a provider attorney in as little as 4 hours. If appropriate, your provider attorney can write a letter or make a phone call on your behalf to seek to settle the situation for you at no additional cost.
How a LegalShield Small Business Plan Works for Debt Settlement
Your business pays a small monthly fee starting at $49.00 per month and gets legal advice, document review and attorney services you can use to settle debt collection cases faster.
Key Features of Our Small Business Legal Plans
LegalShield’s business plans can help you in the following areas.