Running a business in Phoenix is a team sport. No matter what type of business you own, you must have a staff you can trust, an accountant who does a stellar job of managing your finances, an insurance company you trust, and an attorney who works with you to make sure your legal needs are met.
The problem many business owners face is they have an attorney on their payroll to oversee important legal documents, mergers, transitions, and employee information, but they don’t keep any Phoenix collection attorneys on speed dial. It’s not uncommon. When you run a business, you might not assume you’ll need one. Anyone who owns a business that collects payment right away, such as a restaurant or a store, doesn’t need an attorney like this.
The problem many business owners face is they have an attorney on their payroll to oversee important legal documents, mergers, transitions, and employee information, but don’t keep any Phoenix collection attorneys on speed dial. It’s not uncommon. When you run a business, you might not assume you’ll need one.
Other business owners do need Phoenix collection attorneys on their hot list if they don’t collect payment right away. If you’re a business owner who sends out invoices after services are rendered, you may run into a customer who refuses to pay a bill. This might not seem like a problem right away when someone forgets to pay an invoice. You’re human, and you understand that other people are only human also. You know how easy it is to forget about a bill that’s not typical to your monthly expenses or that is easily misplaced among the hustle and bustle of everyday business life. You’re not too concerned when you send out a second notice requesting payment.
This may not seem like a problem right away when someone forgets to pay an invoice. You’re human, and you understand other people are too. You know it’s easy to forget about a bill not typical to your monthly expenses. Or that’s easily misplaced among the hustle and bustle of everyday business life. You’re not too concerned when you send out a second notice requesting payment.
It’s when you realize someone hasn’t responded to a second notice or that someone has yet to pay following a third notice you begin to worry. These people aren’t responding to bill after bill, which tells you they’re probably not going to pay. This is when you want Phoenix collection attorneys on your side.
What Does a Collection Attorney Do?
It’s a good question, and it’s a question that’s asked often by business owners. It’s not uncommon to want to know how a collection attorney differs from the attorney you already work with who goes over your legal documents and other legal needs.
A collection attorney doesn’t handle your day-to-day legal needs. They’re not going to review employee contracts or business contracts. They’re going to focus on finding the people who owe you money and convince them to pay you. This is the one and only job of a collection attorney in Phoenix.
Why Do You Need a Collection Attorney?
The simple answer here is hopefully you won’t find yourself in a position to utilize the work of a collections attorney. Hopefully, your clients and customers pay their invoices on time and you don’t require legal help to track down payments. Your business runs on the payment of your customers, and you can experience serious financial troubles if they stop paying for the goods and services you offer. If you have a customer who doesn’t pay after a few attempts to collect payment, you might want to hire a collection attorney.
Before you call a collection attorney, you should try to collect the debt yourself to avoid adding fees and other costs to the process. You can always pass these fees on to the person who owes you money and refuses to pay, but you might not want to go there right away.
Additionally, you don’t want to turn customers off if you hire a legal entity a week after they fail to pay a bill on the first notice. Sometimes it’s a simple case of forgetting to mail a check, and hiring an attorney right away will turn customers off from ever wanting to work with you again.
You should send approximately three bills to a customer before hiring an attorney. The first is the original, the second a follow-up notice, and you can make the third bill a final notice before you pass the bill on to your legal representative.
Most people are going to pay when they see you are hiring an attorney to handle their payment process. If that doesn’t work, your attorney will send a letter requiring payment, and that usually is enough to get payment in the door for your business.
There are always a few instances in which a customer refuses to respond to a bill even when the attorney has already contacted them and demanded they pay now or face legal consequences. You are not required to sue following this letter, but you should consider this if the bill is a substantial one. If it’s a small invoice, you might not want to pursue this avenue. This is a business and financial decision only you and your collection company specialist can make for your business.