6 Steps to Successfully Collect on a Small Business Debt
As pointed out in the article, it is vital to document your interactions with your customer. This may help you in your negotiations to collect the debt and is a necessity if you are forced to take legal action. The offer to settle for a lesser amount as opposed to simply writing off the debt is a good idea. You should always have in your invoices or other initial documentation a provision for the recovery of attorney’s fees and interest. After less aggressive attempts to collect have failed, you can send a demand letter for the full amount of the debt together with interest and attorneys fees, but offer to settle for a reduced amount if paid within a set time.