The Necessary Steps To Collect a Business Debt

1. Before selling any goods or rendering a service, make the customer/debtor sign a written agreement, preferably one providing that the customer must pay legal fees if he does not pay.

2. Deliver the goods or service and make sure that the debtor acknowledges the receipt of same.

3. Invoice the debtor.

4. Send a reminder invoice.

5. Send emails or written correspondence to the debtor that support your position that the debtor accepted the goods and/or services.

6. Try to negotiate a resolution with the debtor, including offering a payment plan.

7. Initiate collection action.

By far the most important step is to document the transaction in writing so that the debtor cannot claim that the goods and/or services were not delivered.

Edward X. Clinton, Jr.