ever used a collections agency?
- Thread starter powerdog
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pookie_old
Veteran
Re: ever used a collections agency?
Small claims court is your best bet.
Small claims court is your best bet.
Jim Brennan
VHS Member Old Skool
Re: ever used a collections agency?
I know that agencies can take a big percentage for their effort. Small claims may be the way to go, but even if you win, it doesn't mean they will pay. I assume you've tried to reason with them. The fact is that this is one of the downsides of running a business, and most of the laws at this point in the process favor the client. Your options are rather limited. But don't overlook showing up at their door one day and insisting politely to work it out. It's amazing how quickly most people will back down when you talk to them face to face. They know that they owe. Make 'em squirm a little and you might get paid.
I know that agencies can take a big percentage for their effort. Small claims may be the way to go, but even if you win, it doesn't mean they will pay. I assume you've tried to reason with them. The fact is that this is one of the downsides of running a business, and most of the laws at this point in the process favor the client. Your options are rather limited. But don't overlook showing up at their door one day and insisting politely to work it out. It's amazing how quickly most people will back down when you talk to them face to face. They know that they owe. Make 'em squirm a little and you might get paid.
Re: ever used a collections agency?
If you have a written agreement, then indeed, small claims may be your best bet. They have 30 days to appeal (in California). If you win the appeal, then you have the option of attaching assets to pay your claim. It's really a pain, but on rare occasions clients will give you no other choice. As Jim said, sometimes guilt slinging them face to face will do it.
Good luck.
Ken
If you have a written agreement, then indeed, small claims may be your best bet. They have 30 days to appeal (in California). If you win the appeal, then you have the option of attaching assets to pay your claim. It's really a pain, but on rare occasions clients will give you no other choice. As Jim said, sometimes guilt slinging them face to face will do it.
Good luck.
Ken
Jim Brennan
VHS Member Old Skool
Re: ever used a collections agency?
I used to have this radical right wing Christian St Bernard who recorded my dialogue. He hated Nagras. He got very excited when I could record directly to DV.
I used to have this radical right wing Christian St Bernard who recorded my dialogue. He hated Nagras. He got very excited when I could record directly to DV.
Re: ever used a collections agency?
A lot of this depends upon how much money is owed. If it's $10k+ then small claims or a collection agency is the way to go. Below that, it's almost too little. I have had this happen twice. The first time it was under $1,000 and I didn't do a thing. The second time is was $2k. I actually sued, went to court and won (they actually countersued, HA!). For that much money I would not do it again. It was a full day in the court room and just a pain.
I heard the average business doesn't collect 2-3% of money they are owed over a course of a year. It's just part of doing business.
A lot of this depends upon how much money is owed. If it's $10k+ then small claims or a collection agency is the way to go. Below that, it's almost too little. I have had this happen twice. The first time it was under $1,000 and I didn't do a thing. The second time is was $2k. I actually sued, went to court and won (they actually countersued, HA!). For that much money I would not do it again. It was a full day in the court room and just a pain.
I heard the average business doesn't collect 2-3% of money they are owed over a course of a year. It's just part of doing business.
Re: ever used a collections agency?
A good way to avoid bad clients is by using purchasing orders and demanding 1/2 upfront and the remainder upon delivery. If they don't want to do that you probably should not do business with them. After awhile you can quickly establish some goodwill with people and do a 30 day invoice (the way the world should always work but unfortunately doesn't).
Ultimately, this is a valuable lesson to learn in running a business. You get burned once and you are forced to take measures to protect yourself.
A good way to avoid bad clients is by using purchasing orders and demanding 1/2 upfront and the remainder upon delivery. If they don't want to do that you probably should not do business with them. After awhile you can quickly establish some goodwill with people and do a 30 day invoice (the way the world should always work but unfortunately doesn't).
Ultimately, this is a valuable lesson to learn in running a business. You get burned once and you are forced to take measures to protect yourself.