Small businesses often lack the time and resources to recover their owed debts. Debt collection attorneys are a resource for quick and confidential resolution.
All businesses enter into an implicit agreement with their customers that the goods and services provided will be paid for. When that agreement is breached through non-payment or default on payment plans, small businesses have a harder time absorbing the loss than a large corporation.
Business owners most likely lack the time and resources necessary to track down, contact, and enforce payment from debtors. The alternatives then become either a debt collection agency, or a debt collection attorney. Debt collection attorneys for small businesses in Arkansas have an advantage over the larger agencies in three major areas:
1. Keeping Your Customers
While collection agencies are able to help secure your accounts receivable, they often do so at a higher cost. Customer loyalty is especially important to small businesses who work on local recommendation and word of mouth. Debt collection attorneys are experienced in handling high-stakes, emotionally charged situations.
Outsourcing to a larger corporation loses the personal touch that is the trademark of small businesses. A local attorney will better understand the cultural and economic background of your neighborhood, and probably already be acquainted with your business model.
With a debt collection attorney, your accounts payable will be retrieved in a manner that will not deteriorate your relationship with your existing clients.
2. Protecting Yourself From Lawsuits
Hiring a debt collection attorney helps protect your business from unknowingly violating any state-specific collection laws. Statutes of limitations and enforcement processes often differ by state, city, and county. A debt-collection law firm will be well versed in any special legal requirements.
Collection centers hire sales people and customer representatives, not lawyers, to pursue recovery of your debts. The average bill collector from a call center does not have the qualifications to sense potential legal missteps.
3. Following Through With Difficult Cases
Hiring a debt collection attorney sends a message to your debtors that you are taking their debt seriously. It is often easy to ignore phone calls and unofficial bills, but a legal document drafted by an attorney, and backed by a firm makes a statement of intent.
Collection agencies often have debt collection attorneys on staff for when litigation is necessary for payment. Hiring a debt collection attorney cuts out the middleman. For a small business, time is money, and cutting a step out of the debt collection process will get you your money sooner.
If all other options fail, and litigation is required, your attorney will already be familiar with the case and your businesses preferences regarding approach and collection methods. Often, having the weight of a law office behind you is enough to encourage payment, before their debt is compounded with legal fees.
If your small business is struggling with overdue accounts, contact The McHughes Law Firm to schedule a free consultation with one of our experienced debt collection attorneys at, 501-376-9131
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