Owning a business can be an exciting adventure for an individual or a family. It provides the opportunities to sell and invest in what interest you or to utilize a skill set that you have. Unfortunately, small businesses are left to rely more heavily on the income of money from others because of its size or lack of experience in the market. Small businesses tend to go under because of a lack of steady income. According to the United States Small Business Administration, more than half of the small business that are created fall under in their first five years of business. It’s a tough world out there, and an even tougher economy. For a small business there are many factors to look out for to help keep your company from being owed an excessive amount of debts.
The first and foremost would be to have a professional business lawyer on your side, one who has experience with small business, and debt collection. While you may be skilled in the different facets of your business they will be as well, and they can point you to legally wise options in the future. Whenever sending out a bill or invoice, whether it is to a company or an individual, make sure that you write the due date every time. It may also be a good idea to give a payment period requirement as well. When sending invoices to clients, send them out immediately, the longer your business waits the longer they have to forget and your company loses money. Another essential point to remember is to keep in contact with those you do business with, whether that is friendly phone calls or emails, make sure that the person who owes the money is aware of the actual transaction.
As a small business it may also be a good idea to create your own policy as to how you handle the payment process and dealings with debts. Again, a skilled business attorney can assist you here to make sure that the proper laws are being followed and that as a business your rights are being protect as well. A companywide procedure is going to be beneficial so that everyone is one the same page when the issue of debt payments comes up. Having each employee knowledgeable on a surface level will help in the long run of a business. If a company or individual for some reason is not making their payments or is refusing to do so, then as a company you have a right to fight for what is yours. At the Marina Legal Group, we are committed to helping our clients have what is rightfully theirs and protect them from being taken advantage of. Contact us today for more information!