1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

Dallas Business Lawyer’s Insights on What to DO When Chasing Receivables

Dallas business law firm attorney, Richard “Ric” Armstrong, continues his discussion of past-due account collection best practices for Texas business owners.

When dealing with past-due accounts receivable, we previously discussed some collection “don’ts”—certain practices to avoid, using the Fair Debt Collection Practices Act (FDCPA) and the Texas Debt Collection Act as a set of guideposts. Your ultimate goal is to resolve these past-due accounts while hopefully protecting the business relationship, so now let’s now explore some of the “do’s”—i.e., best practices for collecting accounts receivable successfully.

• DO start with a gentle reminder. In many cases, the amount owed may simply be overlooked, and a friendly reminder results in quick payment.
• DO offer the customer options for resolving the issue. Simply telling the customer he owes a debt doesn’t help the situation because (a) he already knows; and (b) he probably doesn’t know how to fix it right now. Instead, try to present the customer several pathways for resolving the account. Can he break it into payments? Can you give him another month or two to pay it?
• DO be polite and gracious, even if you don’t feel like it. The old Proverb “A soft answer turns away wrath” applies here. Needlessly antagonizing the customer only reduces your chances of resolving the past-due balance, and it only reflects badly on you.
• DO remain consistent without harassing the customer. Making regular contact regarding the past due balance keeps the issue top-of-mind so the customer is more likely to resolve it. Calling every day might be extreme unless the bill is very late or the customer isn’t cooperative. Touching base once a week may be more reasonable. If your customer has accepted payment arrangements with you, give her a chance to follow through before resuming calls.

If a large, delinquent account proves difficult to collect using these tips, you should contact a Dallas business law firm to find out how to protect your interests safely and legally. Call Armstrong The Law Firm, P.C., today at 972-424-L-A-W-S (5297).

Leave a Reply

Latest Posts

Address

Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297