To show good faith in your customers, you decide to allow some to borrow from you with the expectation that they pay you back at a later date. While most will pay you back as stated in an agreement, some will not, forcing you to take action. In order to collect debts owed to you, it may be necessary to make telephone calls and write letters to your debtors requesting payments.
However, these can easily be brushed off or ignored as you may not have much recourse to help you get paid. As a result, you may need assistance in obtaining the debt payments owed to you. There are advantages in using a collection agency to achieve this goal, however they may not have the authority and skill you need to be paid back by your debtors.
As a result, it may be necessary to seek the services of a commercial litigation lawyer and below are the advantages of doing so.
While a few outstanding debts may not hurt you, if you have quite a few delinquent accounts owing a lot of money, this could affect your ability to fulfill your financial obligations and ultimately result in the failure of the business.
Commercial litigation lawyers understand the importance of ensuring that their clients obtain a settlement in time to help safeguard their cash flow. These lawyers will often set timelines for debtors to repay the outstanding amounts before legal action is taken. He/she will monitor these given dates closely to ensure the deadlines are met. If this is ineffective, the lawyer can initiate court proceedings and guarantee that all paperwork required is filled on time.
2. Legal presentation
As mentioned, commercial litigation lawyers are able to contact debtors via written correspondence and telephone calls on your behalf requesting payment. When this does not work, legal action is necessary and these lawyers can be of great assistance.
Commercial litigation lawyers have the skills, experience, and appropriate tools to take legal actions against your debtors in case they fail to pay. This includes determining what assets a debtor has and their ability to pay back the debt. Following this, the lawyer can then develop a plan to sue in court that will give you the best chance of being paid back. If you secure a judgement in your favour, your lawyer can then correspond with the debtor on your behalf to request payments.
3. Legal advice
While collection agencies have proven to be effective in securing payments from debts, they often rely on persistency with no significant plan to fall back on if their methods fail. Luckily, commercial litigation lawyers can do the same as collection agencies but have the knowledge of the law and the ability to escalate the situation if initial strategies do not work.
Regardless of the amount of research you have done, when it comes to your survival as a business you cannot take a chance by attempting to represent yourself. You cannot compare your knowledge to that of a commercial litigation lawyers have to navigate difficult or complex situations involved in debt collection. They will review all legal options available to help you pursue the debts rightfully owed to you and develop the best course of action possible.
You are only able to successfully bring a lawsuit against your debtors if your case is strong. Regardless of whether you think your case is obvious and airtight, you still need to prove it in court.
Hiring a reliable commercial litigation attorney will review your case before action is taken and make sure it is as strong as possible. If it is not, they will make suggestions on how to do this, including requesting additional evidence or hiring investigators to look into the debts and provide testimony. Lawyers often do not get paid unless he/she successfully represents the client. Therefore, you can bet they will not pursue it in court unless he/she thinks you have the strongest case possible.