• Last Updated:
  • May 24th, 2018 1:29 pm
[OP]
Member
Jan 18, 2009
311 posts
18 upvotes
Toronto

Lawyer or Collector

Have a customer refusing to pay the balance without reasons. They just keep on making excuses.

Anyone has an experience with this ? Can someone tell me whether a lawyer or collector is more efficient in dealing with this kind of situation and how much they approximately charged ?

Thanks in advance.
2 replies
Deal Addict
Jul 3, 2017
3860 posts
2763 upvotes
If you're in a volume business where a certain percentage of customers routinely fail to pay, you need to come up with a routine policy to handle that, usually a collection agency.

If that's not the case, if this is a rare single occurrence in a business where you have relatively few customers, then it may be best to be prepared just write it off if you can't collect. Maybe learn a lesson about what signs to watch out for in future if there's anything to be learned. You'll likely waste more time and effort trying to collect than it's worth if you go the route of a lawyer or collection agency. Just keep sending the customer the invoice and reminding them.

Of course that may not apply if it's a large amount and your business has made a significant investment to deliver to the customer. In that case you have no choice but to escalate, perhaps to a lawyer, or just by filing in small claims court if it's under the limit.
[OP]
Member
Jan 18, 2009
311 posts
18 upvotes
Toronto
Thanks for your response.

I am a sole proprietor running a small business and it is the second time happened in the past 25 years. Last time we hired a lawyer and took them to the small claims court, we won the case, got the money and legal fees of $400 maximum.

We have a contract fully described buy and sell details and seller (we) completed his side. However, the whole process from the day we sued till the end we received our money took a full two years to run. That's why we are considering alternatives.

We never deal with a collector agent and that's why we try to seek some opinions here. Thanks for your advice anyways.

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