Collection Protection
Your ability to collect from past-due clients may depend on the language in your documents.
Have an attorney--preferably one who specializes in creditors' rights--review all your documents, including credit applications, sales contracts, invoices and statements, to ensure they conform to your state's regulations.
For instance, invoices should state when the payment is due. If you offer terms, you must clearly state the interest rate and conditions under which interest accrues. In some states, customers must agree to this in writing; find out if this applies to you. Also, stipulate that if there is a problem, the debtor is responsible for paying any attorney and collection fees.
Do yourself a favor: Protect yourself now, and collections will be much easier later.
Excerpted from Get Smart: 365 Tips To Boost Your Entrepreneurial IQ
Entrepreneur Editors' Picks
-
These Co-Founders Are Using 'Quiet Confidence' to Flip the Script on Cutthroat Startup Culture and Make Their Mark on a $46 Billion Industry
-
My 7-Year-Old Daughter Started Selling Eggs. Here's What She Taught Me About Running a Startup.
-
Why You Need to Become an Inclusive Leader (and How to Do It)
-
Career Transitions You Can Make in Your 40s and 50s
-
Billionaire Naveen Jain Is an Expert at Disrupting Fields He Has No Experience In. His Secret Sauce for Building Multi-Million Dollar Companies? 'You Have to Come as Naive.'
-
4 Principles to Develop Next-Level Leadership at Your Company
-
This Filipino American Founder Is Disrupting the Beverage Aisle by Introducing New Flavors to the Crowded Bubbly Water Market
