Small Business Debt Collections Made Easy
Every business has customers who fail to pay their bills. When debt collection becomes a problem, getting legal help may be the solution.
Three Ways to Collect Debt
If you’re looking to collect consumer or business debt, you can try to do it yourself, hire a collection agency, or work with a debt collection lawyer.
The best method may depend on the specific circumstances surrounding the type and amount of debt you want to collect. Sometimes you need to negotiate a settlement, while other instances may require you to be more aggressive and take legal action.
Getting advice from a debt collection lawyer is a great way to figure out which method will work best. LegalShield makes accessing necessary legal representation easy and affordable.
If your company has only a couple of delinquent accounts each year and you are sensitive about maintaining positive customer relationships, trying to collect the debt yourself may be a good option.
However, if you're searching for tips on debt collection, you’re probably having an issue and may benefit from legal advice.
A small business plan from LegalShield can help you improve your debt collection results in three main ways.
If you have a large number of delinquent accounts from debtors that are hard to reach, hiring a collection agency to handle the work might be a good option.
However, if you have only a handful of larger debts to collect from customers that are easier to contact, collection agencies may not be your best option. Agencies take 25 to 50% of the amount of the debt recovered and rogue collection agents repeatedly calling customers may tarnish your brand.
If you have a large number of delinquent accounts from debtors that are hard to locate, hiring a collection agency might be a good option.
However, if you have only a handful of larger debts to collect from customers that are easier to contact, collection agencies may not be your best option. Agencies take 25-50% of the amount recovered and rouge agents harassing customers can tarnish your brand.
If you’re dealing with particularly challenging debtors, a debt collection lawyer can have better success at getting the situation resolved. Similar to a debt collection agency, a debt collection lawyer handles much of the work of contacting debtors for payment.. Additionally, collection letters on a law firm’s letterhead communicate your seriousness about collecting upon the debt, and should the matter go to court, a lawyer would be invaluable in guiding you through the process.
How a Debt Collection Lawyer Can Help You
If you’re struggling with credit card debt or medical debt and are unsure what to do, or are dealing with challenging creditors or a debt collection lawsuit, working with a collections lawyer can help you determine what legal options you have. The Fair Debt Collection Practices Act (FDCPA) forbids harassing or threatening phone calls or text messages on the part of debt collectors, and having legal representation helps you protect your legal rights throughout the collection process.
Improve Client Contracts and Debt Collection Letters
Another valuable benefit attached to a LegalShield membership is the ability to submit documents, up to 15 pages each, to your provider lawyer for review and feedback. Depending on the type of plan, a designated number of documents are included each month at no additional charge.
If you’re unsure about debt collection requirements as they relate to an agreement signed by the debtor or you have drafted a debt collection letter you’d like a lawyer to review, you can submit documents right in the LegalShield app. Your provider lawyer will provide feedback to make sure you’re following the law.
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Key Features of Our Small Business Legal Plans
LegalShield’s business plans can help you in the following areas.
Legal consultation from a provider lawyer on business legal matters, with legal research for each issue, if needed.
Receive help with business legal matters more efficiently with professional communications issued on your behalf.
Put business-related legal documents through legal review.
A collection letter from a provider lawyer could help you recoup payments more efficiently.