Customer is not paying outstanding invoice. What do I do ? Help!
What do I do?
Any help is appreciated.
Nov 21st, 2018 4:11 pm
Nov 21st, 2018 5:41 pm
Collection agency since doin' what you've been doin' ain't workin'.Cocoboy1993 wrote: ↑Nov 21st, 2018 4:11 pmI have a customer who isn't paying his outstanding invoice. He won't reply to my email, won't answer his text and won't even pick up my calls. I tried to offer him if he can break down the amount and make partial payments until the full amount is met. He owes us about 5K and I am thinking of taking this to a collection agency. The customer is located in Quebec.
What do I do?
Any help is appreciated.
Nov 22nd, 2018 5:43 am
Nov 22nd, 2018 10:47 am
Small Claims Court costs money and time and even if you receive judgement does not put any money in your pocket as then you have to still collect which is difficult. Even if they own property you have to wait until it is sold, you need to find their bank accounts to garnishee and then there has to be money in them, you have to share any monies recovered with the others who have writs filed, etc. etc. etc. A Small Claims Court judgement is not a panacea. Using a collection agency, while not a sure thing either and they take a percentage, is quick and easy to start and often scares people more than small claims court as they are worried about their credit rating being ruined and can often cave because they want to stop the constant collection agency harassment.
Nov 22nd, 2018 11:29 am
Nov 22nd, 2018 11:55 am
Nov 22nd, 2018 3:15 pm
Eh, to each his own. I never said small claims is a panacea, but:
Nov 22nd, 2018 3:33 pm
Debtors know that a SCC judgement doesn't mean they have to volunteer payment. SCC takes time and money and possible countersuits. Collection agency is free unless you collect. Easy peasy.FrancisBacon wrote: ↑Nov 22nd, 2018 3:15 pmEh, to each his own. I never said small claims is a panacea, but:
- I think that it is cheap (~$100?)
- quick (little need to prepare much, but obviously this depends on your case)
- would scare people more than a collection agency
Collecting on a judgement doesn't seem less likely than having a collection agency collect.
Of course if your customer is a deadbeat, little will help.
One advantage of small claims: you can register the judgement on their credit report.
Final point: in Quebec judgements can be renewed forever, so you can afford to be patient.
Nov 22nd, 2018 3:39 pm
I don't understand your point. If a debtor won't pay a SCC judgement, then why would they pay a collection agency?
Nov 22nd, 2018 6:00 pm
Exactly my point so you might as well choose the free route.FrancisBacon wrote: ↑Nov 22nd, 2018 3:39 pmI don't understand your point. If a debtor won't pay a SCC judgement, then why would they pay a collection agency?
Certainly you can hassle them more with a judgement than any collection agency can and it can be registered on their credit file.
Finally, I don't consider that ~$100 in fees really counts.
Nov 22nd, 2018 7:12 pm
Nov 23rd, 2018 10:00 am
Very bad advice. Speaking from experience in going after debts to some of my previous businesses for many years, let's be practical here rather than talk in useless generalities:FrancisBacon wrote: ↑Nov 22nd, 2018 7:12 pmI'd say: if you think your debtor has very few assets and very dim prospects, sure, give it to a collection agency.
But if your debtor has any hint of real assets, a good business, or even just "potential" (eg medical student), then go the small claims route.
Nov 24th, 2018 8:22 am
Nov 24th, 2018 9:30 am
There is nothing 'scary' about SCC, but enforcing your judgement can be one endless often futile process which can take decades. You obviously have zero experience in collecting judgements.FrancisBacon wrote: ↑Nov 24th, 2018 8:22 amDon't let people scare you away from small claims court. In Quebec (and I must assume Ontario), the process is relatively cheap, relatively fast, and efficient.
Enforcing your judgement is just one more process. Yes, the debtor can try to run. Whether to invest in the process or not is just one more business decision that will be based on your knowledge/best guess of his situation.
But all in all, it's a small investment of time and money if $5000 is on the line.
Nov 24th, 2018 9:43 am
Wrong again. I have lots of experience collecting on judgements. Including collecting on ones that are so old that there was more due on interest and fees than in principal.