Why is the feeling of "unpleasant" in front of the customer the most dangerous thing for the business?
What signs in customers should turn on red lights, when must a flag be raised in front of a customer who is not paying a debt and how should one act at all?
Adv. Eyal Reiper, a partner in the firm of Deri, Reiper & Co., which specializes in debt collection, responds
In conjunction with Legal Zap
10/04/2022
Sunday, 10 April 2022, 08:18 Updated: 15:41
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"Those who do not act now may find themselves in a worse situation later on" (Photo: ShutterStock)
"When business owners encounter customers who do not pay, it is undoubtedly one of the most unpleasant situations for them," says attorney Eyal Reiper, a founding partner in the law firm Deri, Reiper & Co. "Whether the business owner is trying to collect the debt for the first time or Attorney
Reiper
, whose office has been collecting debts for years, has encountered many cases of clients trying to evade payment and business owners having to understand the meaning of not collecting debts on time.
"The consequences are very severe," he says, "and those who do not act in time may find themselves running in front of a snowball."
"A red flag should be raised when a customer does not pay for an extended period" (Photo: PR)
Why is it important to collect debts on time?
Advocate Reiper: “It is important to collect debts on time because many times, when the token falls slowly, the handling of debts may already be too late.
In order to
collect debts, the red flags must be identified ahead of time and acted upon immediately.
"
Get more information about the customer through other factors in his company.
If each of the factors in the company tells a different story, it could be a sign that the company is having difficulty repaying its debts.
If this is the case, we need to make it clear to the customer that the next steps will be more difficult. "
How do we know when to raise a red flag?
"A red flag should be raised when a customer does not pay for an extended period of time, and this is accompanied by statements that indicate evasion attempts or financial problems ,
" Attorney Reiper clarifies.
One that may indicate this is the debtor's personal problems, which are costly. For example, family problems such as divorce, health or mental illness, or even if the debtor seems to be bothered on a daily basis for no apparent reason. "But these signs may indicate deeper problems that are highly likely to pose economic difficulties," says Attorney Reiper.
"Other signs can be reductions in the company, an intention to sell it, taking a disproportionately large loan from the bank and more."
In each of these cases, "Advocate Reiper emphasizes.
Is it possible to do some of the steps alone, without a lawyer?
"Yes, some of the steps can be taken alone, especially in cases where the debt is not created due to a real problem, but stems from forgetfulness. Sometimes the debt is not repaid just because it 'fell between the chairs' in the organization. In such cases you can contact At WhatsApp, demand the payment of the debt in a pleasant manner and emphasize that the deadline for payment has already passed. "
In other cases, Advocate Reiper continues, “If a month has already passed or two months have passed since the deadline for payment, and it appears that the client is trying to evade it, it is best to involve a lawyer and as soon as possible.
This is because many customers in such situations are in a precarious financial situation that does not allow them to repay the debt, and there is a good chance that you are not their only creditors. "
What is the biggest concern if we do not collect the debt on time?
"The real big concern is that if you do not act, someone else will act in front of you, and then the debtor's ability to repay you will decrease even more, which will further lower the chances that you will see the money soon."
Is there a way to avoid debt collection altogether?
"No, it is not always possible to completely avoid collecting debts, but of course one should strive for it and try to work only with non-problematic clients in advance. There are all sorts of steps that can be taken to achieve this before deciding to start working with the client."
Afterwards, Advocate Reiper continues, "a written agreement should be made with the client with clear conditions and clear and detailed invoices submitted to him."
And if the client still does not pay?
"You should contact him on the day he exceeds the date and warn him about it. It is important to continue to warn the customer about invoices that have not yet been paid by him, and it is advisable to document this by e-mail, WhatsApp, etc. If this does not help, legal action should be taken."
Advocate Reiper explains why it is important to enlist the help of a lawyer in the debt collection process: “There comes a point where only a lawyer, who knows the relevant law and case law and knows which court to turn to, can help you collect the debt.
It is important to note that not all heavy guns need to be activated at all times.
Sometimes just an assertive letter from a lawyer is enough to collect the debt. "
What can happen to the business if we do not collect the debt?
" The business can be harmed on all sorts of levels.
First of all, at the operational level - any delay in collecting debt may roll over to you and create a problem for you in payment to suppliers and employees.
Beyond that, non-collection of a debt to one customer may signal to other customers that they too are 'allowed'. "
Advocate Reiper adds: “Clients who see that a business owner knows how to stand on his own will appreciate him more.
Not only will assertive collection not hurt them as clients, but it will strengthen their confidence in you. "
And what if the collection failed? Payment to the lawyer may not be unnecessary?
" The fear of hiring a lawyer and paying him money for debt collection is completely understandable.
For this reason and to solve similar dilemmas of business owners, some of the lawyers involved in collection operate on a model of a percentage of the amount obtained.
If no collection is made, there is no payment to the lawyer. "
Why is it important to act now to collect debts?
" Those who do not act now may find themselves in a worse situation later on.
The flow is like the blood of the business, and if not enough blood flows, the business will not function properly.
In the end, remember that it is not just about the money, but also about your image and integrity. "
Adv. Reiper testifies: "Deri, Reiper & Co.'s firm is unique in the field of debt collection.
We fight to the last shekel in every collection, and each of the lawyers in the firm invests and investigates each case in depth, until we understand what can be done to succeed in the lawsuit.
We will go down to the smallest resolutions until we achieve the desired result for the customer. "
A customer does not pay you 30 days or more?
Need help getting your debt back on track?
Contact the law firm Deri, Reiper & Co. here for an initial examination of the options available to you.
Contact us, Tel: 050-7118585, Email: Info @ drlawfirm, Website: https://www.drlawfirm.co.il/
To Deri Reiper & Co. Attorneys at Law Legal
Article Article courtesy Zap Legal
The information presented in the article does not constitute legal advice Or a substitute for it and does not constitute a recommendation for taking proceedings or avoiding proceedings.
Anyone who relies on the information in the article does so at his own risk
Sentence
Labor and Employment Law
Tags
Wage withholding
