Why You Should Send a Demand Letter to your Debtors?
Posted: Sep 18, 2018
So, someone owes your business a lot of money. Perhaps, the suppliers or the vendors, customers, clients, or maybe an associate who is refusing to pay money now. Regardless of the reason why you are not being paid by any of these, you now may have a financial issue. After all, you have to run your business; you need to get the unpaid amount paid in order to make sure your finances are sound. Before you take any further action, you should send a demand letter to the debtor.
As the name tells, a demand letter is a letter to the debtor in which you officially make an order for the payment. A well-written demand letter will have all the basic elements. It has the description of the amount owed, how the debt was incurred, the fines for the late payment, and the results for not paying and adding any supporting documents such as the past invoices and communications. When a debtor receives this letter, they come to know that you are taking things seriously. You are prepared to take legal notice to recover the debt. Through this letter, you are giving a chance to the debtor to take debt seriously and pay before you take any further actions. Once you send the demand letter to the debtor, there are chances the debtor will take it seriously and pay the amount. But if they are not responding to the letter, you can ask your collection attorney to help you with the next steps of debt collection.
Many creditors ask should they hire a collection attorney for sending a demand letter or not. There is no such involvement of an attorney in a demand letter, but there are a few benefits. It showcases that you are concerned about your money. At times, just sending a demand letter on an attorney’s letter pad makes a lot of sense. It is sometimes enough to motivate them to settle the matter. When money is involved, things can worse quickly. A legal expert with vast experience in writing demand letters, debt collection and judgement lien in MA will assist you in sorting arguments and disputes. Hiring a collection attorney also lays down the groundwork for the lawsuit.
So, if you are seeking to collect the debt for your business, take legal assistance. They will help you in the best possible manner.
At the Law Offices of Alan M. Cohen LLC, we aggressively approach commercial debt collection in Massachusetts. With more than 30 years of experience, we take whatever legal steps are necessary to collect for you as much of your delinquent account as