{"id":4416,"date":"2016-04-04T10:47:30","date_gmt":"2016-04-04T15:47:30","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-finances\/collection-of-accounts-checklist.html"},"modified":"2024-06-06T03:58:08","modified_gmt":"2024-06-06T08:58:08","slug":"collection-of-accounts-checklist","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/collection-of-accounts-checklist.html","title":{"rendered":"Collection of Accounts Checklist"},"content":{"rendered":"\n
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Collection of Accounts Checklist<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

If you extend credit to your customers<\/a>, it’s inevitable that some of those customers are not going to pay you on time. In fact, you can rest assured that some of those customers are not going to pay you at all. What can you do when a customer doesn’t pay? <\/p>\n

There are a number of important steps you can take including sending a demand letter<\/a>, visiting the customer in person (if feasible), or hiring a lawyer. There are also collection agencies that are available to assist you in the collections process.<\/p>\n

A Word on Collection Agencies<\/h2>\n

If you do turn your account over to a collection agency, be sure you do your homework first. Make sure the agency is licensed, bonded and follows the rules of the Fair Debt Collection Practices Act<\/a>. Anything less can not only ruin your reputation in the community, it can have negative legal consequences if the agency engages in unfair collection practices.<\/p>\n

How to Collect on a Past Due Account<\/h2>\n

The following actions can help improve your chances of collecting your accounts.<\/p>\n