General Guidelines for Collection Matters

?Consider using small claims court for actions less than $3,000. Any company officer can appear without an attorney.

?As a rule, always file a mechanic's lien on construction projects.

?Get references and document the deal.

?Keep records paper every transaction.

?Establish procedures and follow them.

?Stay on top of delinquent accounts.

?Get a personal guarantee from a debtor company's officer this can help influence the officer to exert full influence to see that a debt is paid.

?In your credit agreement, provide for the recovery of interest, collection costs and attorney's fees.

?Establish a home-field advantage by declaring the venue in the credit application.

?If you have any questions, consult an attorney.

?Don't throw good money after bad. Sometimes an account is simply uncollectable.

The information above came in part from the Blackwell Sanders Legal Advisory, January 1997.