How to collect past due money for your business

In this video (see Tom’s YouTube video below), we’re going to cover how you can make sure that your business is going to be paid in a timely manner and that you’re going to get the most dollar-for-dollar that you possibly can from your customers.

We’re also going to explain how we’re going to be able to incentivize customers to pay you sooner rather than later, and how the whole system works when you go to court – if you need to, as a last resort.

Now obviously, customers sometimes fall behind, and you may need to send them a “past due” letter. You may wait a certain amount of time, perhaps 60 to 90 days, before you go to an attorney and the attorney may help you say, “Well, we need to send him a demand letter and we need to think about ultimately filing a lawsuit if the amount in question is high enough to make it worthwhile to do so.”

Include an attorney’s fees provision

The problem that clients run into most often is that if you don’t have a written fee agreement with your customer to be able to recover your attorney’s fees and costs, you’re not automatically going to get that recovered.

So you need to have in your contract with your customers an attorney’s fees clause that specifies that in the event that you have to resort to the courts and file a collection action, you are going to be able to recover those attorney’s fees and costs, and you’re not having to pay them out of pocket.

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