Archive for January, 2017

Are You Owed Money?

At some point or another someone is likely going to owe you cash. It is practically unavoidable if you operate a small business in Kelowna. So just how do you collect what is rightfully yours?

Contrary to the attorney battle cry, the answer is not necessarily to “sue them!” Sure, it is certainly meeting to serve someone that has tried to make the most of you with a summons. Nevertheless, before this, it is vital that you evaluate your relationship together with the individual/client/customer, as well as their motives for not paying. Most significantly, do you need to do further business with this particular debtor? Are they just having cash flow problems? Was there a misunderstanding? What exactly does their previous history seem like?

Provide the debtor a call if you’re not exactly sure of the circumstances. In as much of a non-confrontational tone as you can muster, remind them of the debt and the conditions of the agreement. At this point, making threats is counterproductive but is being too accommodating. In general, a friendly yet firm strategy produces the very best outcomes.

Irrespective of the conversation’s result (barring the wonder which is immediate payment), send the debtor a letter memorializing the conditions of the original agreement in addition to your recent telephone conversation. Send this letter by certified mail to confirm its receipt. Also, make sure to add a deadline for payment or a response. As the original debt holder, you are not subject to the Fair Debt Collection Practices Act and may provide the debtor as numerous days to react as you’d enjoy. We urge ten days in the date of the letter. Ten days is enough time to account for consideration plus delivery time by the debtor. In our experience, when there is not a result within ten days, there isn’t going to be one.

The information of your demand letter should change based upon the scenario. Clearly, threatening legal action is just not conducive to continued company. Just as a purely informational reminder will do little to spur action from those more unscrupulous of debtors.

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