In case your company is similar to numerous others out there, you write off debts you are owed every once in awhile. It might appear like the easy way out, but in fact, you are giving money away just. That is no real way to run a business.
When you have outstanding payments pending, contact your visitors immediately by sending away a warning notice. Give them fourteen days for a reply, which is an affordable timeframe. If they do not react to your demands and also have not met the conditions of the deadline, keep them accountable. The very best plan of action is to take action right away.
If you’re not getting any response from your initial warning letter, it is an excellent time to employ a Canadian collection agency to take care of the collection for you. You will need to do this within months, not years since commissions are higher on accounts that are more than a full-year-old.
Research collection agencies before choosing the first one you see online. Read their testimonials and reviews to compare all of them. Cross check each company to get a much better understanding of the way they operate. Outsourcing your selections to the right agency is a lot more cost-effective than carrying it out in-house because you get rid of the risk.
If the collection agency is unsuccessful in the recovery of your money, you may have to sue in civil court. That’s the reason time is so critical. The much longer you wait, the better the opportunity it might get trashed by the judge because of the statute of limitations . The statute of limitations generally in most provinces is two yrs for litigation against bad debts. The total amount you can sue up for in each province varies. For instance, Alberta is $50,000 and Ontario is $25,000. Consult with your local small claims court for the full amount you can sue for and the exact amount of time for the statue of limitations .
An excellent recommendation is to outsource your collection efforts to National Recovery Corp. They are bonded and certified all across Canada and they work on contingency, so you pay just if they gather your money. No collection, No charge – which is how it ought to be.
NRC Collections is considered one of the top debt collectors in Canada widely, and with justification. They take the risk off of you, they get the job done, and they understand that accruing more debt on top of your existing debt is a big mistake. Do your homework and research several agencies first, but once you do you will likely find that no one else compares.