Why collect?
Well, it depends. Often, when collections is mentioned, people think of credit cards and the like…some feel like collections is dirty word reflecting hardball collectors calling you at 2 am.
Let’s look at the other side of this coin. Your company worked hard to seal a lucrative contract, only to have the other side simply stop performing or never ship the goods. They won’t accept your phone calls, nor your mailings. You dedicated considerable time and money to winning the agreement, in some cases rejecting offers from others willing to work with - all to your detriment! You sue and win - now what?
Perhaps a competitor has been using your trademark for some time, causing you to sue her and you win. She’s not paying up and she’s made that clear as crystal.
Or maybe your business offers financing to consumers so they can buy new washers and dryers. The payments begin to come in late and then, not at all. You come to find that some consumers have vanished, along with your collateral.
Litigation makes businesses shudder. However, collecting what is owed to you does matter, for a number of reasons: (1) the cost of collecting is less than the debt owed (in some cases); (2) you want to make it clear that you do mean business when debts are owed to you, so people and entities that contract with you are serious in their commitments; (3) if you don’t collect, a major part of your business may die (think banks), to name a few.
My point is simple: sometimes, many times, it is imperative that your company collect (or at least try) - your bottom line may be at stake if you don’t.
www.moanderlawfirm.com
Chris Moander is an Attorney handling business law matters, business litigation, and collections matters throughout Wisconsin.
