Six Things to know about collecting receivables

Tired of waiting around for one of your clients to pay up? Your initial instinct might be to turn to a lawyer or a collection agency, but make sure you have all your facts straight first. The New York Times' Jay Goltz put together these six points for small business owners to consider when collecting receivables:

1. Just because you hire a lawyer, doesn't mean the customer will pay.

2. Collection agencies charge on a percentage basis, and track down your money by calling and writing letters to your client.

3. Most lawyers won't take on collection matters because small business owners don't like to pay by the hour, and the percentage of earnings is too small to warrant the case.

4. Most collection lawyers take on clients with hundreds of files; rarely will they take on one individual case.

5. In Illinois, a corporation can file a claim without an attorney if the claim is $2,500 or less.

6. Don't wait too long to turn a bill over to a collection lawyer or agency; that way there's still money to get.

For a complete run-down of these six points, read Jay's story here.