| In the first three installments of this series, we | | | | payments. Another good practice is to accept the |
| examined the relevant issues facing a small | | | | first payment by check. Accepting a non-certified |
| business owner who has outstanding accounts | | | | check gives you two very important pieces of |
| with current customers. In this fourth and final | | | | information, where they bank and their account |
| article, we will deal with protecting the small | | | | number. As stated in previous articles, one |
| business owner on a proactive basis, instead of | | | | avenue of execution is to freeze bank accounts. |
| the re-active approach required when dealing with | | | | By getting this information early it greatly aids in |
| current clients. As I have preached to my clients | | | | execution later on. |
| over and over again, the main weapon in your | | | | Another piece of information to obtain is the |
| arsenal is information, information, information. As | | | | customer's license plate number off of their |
| much as you can gather on your prospective | | | | vehicle. Write this info down and keep it in the file. |
| client. Not only will this dramatically improve your | | | | There is always a possibility that should the need |
| chances of recovering the debt through legal | | | | arise, you could execute against the customer's |
| process, but it often has the effect of screening | | | | vehicle in order to recoup the debt. |
| your customers in a way you may have never | | | | Finally, the last measure taken needs to appear |
| done before, thereby preventing you from even | | | | on your contract itself. You need to have an |
| stepping on the landmine in the first place. | | | | attorney's fees clause written into your contract. |
| It can not be stressed enough that information is | | | | These clauses are very simple and are very |
| key. The more you have of it not only betters | | | | often overlooked by business owners. Put simply, |
| your decision making process, but it helps | | | | it is a clause that states that should you be |
| tremendously in collecting on a debt. The | | | | required to retain an attorney to represent you |
| information gathering begins immediately when a | | | | as a result of their breach, they will be responsible |
| prospective client walks through your door. You | | | | for your legal fees. You will then be able to file a |
| should engage in the practice of filling out an | | | | lawsuit for the debt owed, plus reasonable |
| information form with all pertinent information on | | | | attorney's fees. It is critical that this clause be in |
| the client. Start with the basic information, but | | | | your contract. Otherwise, when having to recover |
| make sure you get all of it. It seems rudimentary, | | | | the debt through legal process, you will never |
| but you would be surprised how many times this | | | | become "whole." This is one of the biggest |
| gets overlooked. Make sure you get the full name | | | | complaints I hear, that they are simply owed the |
| and address of the prospective customer. If it is | | | | money, yet they do not receive all of it due to |
| a business, make sure to get a home address as | | | | having to hire counsel. Simply by including this |
| well if possible. Get all contact numbers and emails, | | | | clause in your documents will allow you to recover |
| as well as alternates of each for your file. | | | | your counsel fees upon execution. You still may |
| In addition to the basic information, get more vital | | | | be required to pay monies to your attorney |
| information. For an individual, get a social security | | | | upfront, however, you will still have the |
| number; or for a business, its EIN number. Get | | | | opportunity to make it up later on. |
| this information especially if it is a large account | | | | This series of articles was prompted by our very |
| and ask permission to run a credit check. There | | | | uncertain economic climate. I have personally seen |
| are numerous companies in the market place | | | | these types of cases rise dramatically and can |
| which will conduct credit checks for nominal fees. | | | | only surmise that they will continue to rise for the |
| These credit checks can tell a lot about the | | | | foreseeable future given the current economic |
| stability of the entity, with information such as | | | | outlook. While I agree with many of my clients |
| credit which as been extended, judgments, | | | | who take the position that it is the customer's |
| lawsuits, and late payments. You can not rely | | | | duty to pay, the real duty is upon the business |
| solely on this information as it is never a complete | | | | owner to protect himself from being taken |
| look into the security of the entity, however, it | | | | advantage of. These articles are meant to help |
| does go a long way in helping you determine if | | | | educate the owner on how to possibly avoid |
| there is any risk involved. | | | | these problems, but are in no way to be |
| Now that you have the basic vital information, | | | | considered legal advice on collecting accounts. You |
| you need as much secondary information as | | | | should take this information and find competent |
| possible. One of the best ways to get this | | | | legal counsel to advise you on these matters. |
| information is by getting the prospective | | | | Your attorney will then be able to work with you |
| customer's payment information. Try to obtain | | | | in formulating and implementing these systems to |
| the customer's credit card number to process | | | | your benefit. |