How you handle this will not only impact your business but will also reflect on you as the business owner. Here are a few suggestions to help you accomplish your task.

It is often easy to get upset when you feel that someone is avoiding paying you what they owe you but it is important to remain professional at all times. Heightened emotions can not only affect your business relationships; they can also impact your health. While collecting the debt owed to you is important, it is not worth the cost of having to deal with elevated blood pressures, headaches, increased anxiety, and other stress-related ailments.

When dealing with the debtor, take a deep breath and remain calm. Doing so will allow you to remain in control of your emotions, which, in turn, will allow you to remain in control of the conversation. Remaining professional will ensure that the debt collection conversation remains business-focused and does not begin to feel like a personal attack on the debtor. This will foster cooperation.

As a small business, you must know your rights when it comes to collecting any outstanding debts your business may have. Knowing your rights and legal options will make you more confident when dealing with your creditors.

Did you know that in the state of California, your outstanding debts may fall under the Rosenthal Fair Debt Collection Practices Act? The Rosenthal Act only applies to consumer credit transactions. Examples of these types of debts include people who are:

• Borrowing money
• Buying property
• Obtaining goods and services for personal or household use

Both of these laws outline what you can and cannot do to collect your debt.

One of the biggest keys to collecting any outstanding debts owed to you is to have clear documentation. Your documentation should include but is not limited to the following:

• How the debt was incurred
• Any payments made towards the debt
• Any statements and communications sent regarding the debt
• Any and all attempts to collect the debt should be clearly documented to include dates and times calls were made, who you spoke to, and what was said.

When attempting to collect outstanding debts, you must avoid making any type of idle threats towards the debtor. At no time are you allowed to threaten to use any type of physical force to harm them, their property, or their reputation.

You cannot threaten to seize their assets or garnish their wages unless you have taken the necessary steps to obtain a judgment through the courts in order to do so. You cannot accuse them of committing a crime, such as taking property under false pretenses, unless you are willing to take the necessary steps to have them charged.

5. Hire a Business Attorney

Unfortunately, no matter what you do, there are some debts you are going to be unable to collect without the assistance of an attorney. The Kisner Law Firm can help you to collect what is owed to you. We have the knowledge and experience to help get you what you deserve. Don't lose any more sleep over outstanding debts owed to you; call today to schedule a consultation.