Tuesday, June 26, 2007

To Collect or not to Collect, That Is The Question

Whether you are a private person loaning money to a friend or a corporation extending loans to employees, partners or especially third persons, debt collection can sometimes be a problem. For some, more problem that it usually entails like when you have extended yourself so far or stretched yourself so wide that non- recovery of debts owed to you could mean the end for you or your business.

Debt collection may be as simple as calling the debtor or writing a demand to him to pay back what is owed. However, most calls or letters have gone unheeded. If you have this kind of problem, of persons or entities not willing to pay your due and right to demand payment for money or property owed, you might need the services of a collection agency or business lawyers who are adept in debt collections.

One of the first things you should consider in debt collection is whether the debt is worth collecting at all. If the debt owed to you is so small that it would not be profitable to pursue, the best course of action is to move on, forget the debt and just learn from your mistakes.

If however, although the debts are in small amounts, but if claimed together amounts to a sizeable fortune, if you are already frustrated in personally collecting those debts, then you need to think about launching a case against those who owe you.

Often times, collecting on your own is counter productive. Instead of putting your time and effort in what you do best, which are running your business? You are tied down with the stress and rigors of collecting debts from those deaf and blind from your pleas. In this case, you are even losing more by losing profits since you are derailed from maximizing your business’ potentials.

When consulting or acquiring the services of business lawyers, the money you additionally earn by not being bothered by the rigors of collections could pay for the lawyers and still earn you some more profits. This, plus the added bonus of successfully collecting the debts owed you are some of the advantages of seeking professional debt collecting help.