Whether you have been in business for 20 days or 20 years, there is nothing more concerning and frustrating than a client or customer not paying what is owed. While a common problem, there are many ways to not only properly and successfully deal with these debtors, but to prevent these scenarios in the first place. To help, NFIB’s Small Business Legal Center has published a Debt Collection Guide designed to help small businesses manage current debt collection disputes, and arm them with strategies to prevent past-due debt from incurring.
The Guide provides tips on:
- Drafting proper and thorough written sales and service agreements that sets the payment and service expectations between you and your client.
- Effective invoice tactics to ensure proper and timely payments.
- General debt collection first steps.
- Drafting debt collection letters (template included in guide).
- Negotiation tactics.
- Arbitration/mediation.
- Navigating small claims court.
- Debt Factoring.
Even if you are not undergoing a collections issue at the moment, understanding how to navigate them is an invaluable skill to continue smoothly operating your business!
For more tips on debt collection, be sure to check out NFIB’s webinar Every dollar Counts: Small Business Debt Collection and Credit Management Strategies presented by Cliff Ennico, Esq.
If you have any technical or general questions surrounding debt collection, please reach out to NFIB’s Small Business Legal Center’s SupportLine at [email protected] or 202-314-2070.
September 6, 2022
