Uncollected debts are costly; it affects the company’s bottom line. A New Jersey commercial collections attorney can provide solutions to optimize profits.
The statistics don’t lie; the longer a commercial debt goes uncollected the more difficult it is for a New Jersey commercial collections lawyer to recover the full amount. For example:
• Once a debt reaches 90 days past due, the average collection is $0.75 on the dollar.
• At 180 days, it becomes $0.50.
• At 270 days, the best to be expected is $0.25.
That is why it is imperative to retain the services of a knowledgeable New Jersey commercial collections attorney early in the process.
It is important to initiate communication right away. A letter from a New Jersey commercial collections attorney demanding payment and warning of legal action if the debt is not paid informs the customer that the company is serious about enforcing their legal rights. In many instances, such a demand letter is enough to trigger full payment.
Establishing a Dialogue
Often, there are legitimate reasons why a debt remains unpaid; the customer may want to pay but is unable. Perhaps they have some claim that they believe warrants a reduction in the amount owed. In any case, a New Jersey commercial collections lawyer may be able to find out more about the reasons for nonpayment. This is especially important if the intention is to conduct future business with the customer.
Finding a Solution
Among the options a New Jersey commercial collections attorney can suggest to avoid litigation include:
• Arranging a payment schedule
• Having the delinquent customer sign a promissory note
• Having the delinquent customer furnish collateral for the debt
• Having the customer provide personal guarantees for the debt
Contact a New Jersey Commercial Collections Lawyer for Legal Advice
Every business depends on cash flow to operate smoothly. When uncollected debts pile up and hinder your ability to conduct day-to-day operations, it is time to contact a professional. Call Snellings Law, LLC, a New Jersey commercial collections attorney group, at 973.265.6100.