COLLECTION STRATEGIES FOR PROFESSIONALS

Presentation to IEEE Boston Consultants Network

Tuesday, June 27, 2017

• Know Your Customer

• Recognize High-Risk Engagements

  • Obtain Additional Security
  • Obtain Detailed Client Information Up Front

• Get It In Writing

  • Terms of The Deal
  • Terms Of Credit
  • Events of Default
    1. Late Fees
    2. Attorney’s Fees
  • Security

• Due Diligence On A Budget

  • Credit Reporting Services
  • Ask Your Client
  • Applications for Credit
  • The Internet
    1. Customer Websites
    2. Internet Search Engines
    3. Secretary Of State’s Office
    4. Registry Of Deeds
    5. Retain Copies Of Checks

• Red Flags

  • Bounced Checks
  • Change In Payment Frequency
  • Client’s Employees Are Being Laid Off
  • No Inventory Or Stock On The Client’s Shelves, No Business

• Legal Enforcement Techniques

  • Trustee Process
  • Real Estate Attachment
  • Preliminary Injunctions
  • Reach And Apply
  • Litigation For Unfair and Deceptive Trade Practices, M.G.L. c. 93A
  • Mechanics Lien, M.G.L. c. 254

• Costs of Collecting

  • When is a balance worth going to court?
  • Small Claims Court

• Implement A Billing And Collection Procedure

  • Timely Bill
  • Provide Clear Detailed Bills
  • Balance Due Reminders
  • Automatic Collection Letters
  • Telephone Collection Strategy
  • Forward To A Collection Attorney

• Conclusions