Tip #4 from a Pennsylvania Collections Attorney
Tips from a Pennsylvania Collections Attorney | Part 4: Increase Successful Debt Collections
As a Pennsylvania collections attorney, I am identifying and posting a series of articles to help businesses avoid debt collection issues or increase the likelihood of successful Pennsylvania debt collections.
Tips 1-3 are the importance of a Forum Selection Clause, the use of an Attorney Fees Clause, and financial due diligence with regard to a new or potential customer, vendor or supplier. Tip # 4 is to have a meaningful and strict process for handling accounts receivables.
One of the many issues I see as a Pennsylvania collections attorney is a business’ poor handling of accounts receivables. All businesses should have a procedure that includes timely invoicing to clients and customers, timely follow up (usually every 30 days), form letters to send after 30, 60 and 90 days of non-payment, and a process for handling delinquent accounts over 90 days that may include the use of a Pennsylvania collections attorney. The longer a debt remains unpaid, the greater the chance of never receiving payment for that debt. If a debt remains unpaid, the debtor could fall further into financial distress and other creditors can enter the picture. Debtors can file for bankruptcy protection, relocate, sell valuable assets or redirect payment to other creditors, all at the peril of the business that is not quick to act or at is not at least proactive in its handling of accounts receivables. Having a simple concrete process in place can make all the difference.
The Martin Law Firm is a Pennsylvania law office located in Blue Bell, Montgomery County, PA. Our areas of practice include DUI and criminal defense, commercial debt collections, family law and more. Please visit our Practice Areas page to learn more.