Cash flow is an ongoing concern for many small businesses. This can be especially problematic when uncollected receivables start piling up. A New Jersey collections lawyer can implement a strategy to expedite payments.
When a business has done all it can on its own to collect a debt without success, the very act of hiring a lawyer puts the debtor on notice that the creditor mean business. Merely receiving a letter of the law firm’s letterhead can bring about a change in attitude.
Although every case is unique and must be handled based on its particular facts and circumstances, a New Jersey collections lawyer typically suggests taking a measured approach initially. Seldom is it advisable to threaten legal action without exploring other options. The goal is to establish a dialogue.
If the debtor replies to the demand letter, it can pave the way for a potential settlement. In some instances, they may have a reason they believe the debt is not owed or a lesser amount is more appropriate, perhaps due to an incomplete or defective order. An investigation into the issues may prove fruitful.Other times financial hardships are affecting the debtor who may legitimately want to pay but cannot remit all that is due. Establishing a payment plan, signing a promissory note or otherwise providing personal guarantees are all potential options to begin the goal of repayment while at the same time redirecting the process from an adversarial matter to a cooperative one.
The Inevitability of Litigation
In some instances, a lawsuit may be necessary. When a solvent debtor simply refuses to pay, it may be the only option. Many cases are settled after filing an action and before a trial, but an experienced lawyer will be prepared and ready to pursue a judgment and thereafter take the often necessary steps to collect the judgment.
Contact a New Jersey Collections lawyer for Legal Advice
Having a well-defined credit and collections policy is mandatory for any business. Make sure your business is protected. Call Snellings Law LLC at 973.265.6100.