Even just one nonpaying client can have a surprisingly profound impact on your bottom line. While some clients may only require a little nudging and reminding about their past-due bills, others might ignore all attempts via inside and outside collection to gather the total amount owed. In these situations, the only sensible option is litigation. Here a few tips for litigating a nonpaying client after outside collection attempts have failed.

3 Ways to Prepare to Litigate a Nonpaying Client

1. Document Everything

From the first attempt to collect to the last, document every single time you contact the client. When you make phone calls, write down the date and time the call was made, who made it, who they spoke to, and what was said. When you write letters, always keep a copy for your own files. If you've turned the debt over to an outside collection service, they will have their own documentation detailing their attempts to contact the client; request copies of this documentation before starting any litigation.

2. Have a Complete Record of the Work or Services Provided

Be ready to submit an itemized list of the work, services, or products you provided for the client. This will become the basis of the legal claim—the heart of the case and the whole reason the client defaulted on payment. Consider this record an essential component, and be as detailed as possible when describing the work you did for them.

3. Hire Professional Support

It's extremely difficult to litigate a nonpaying client on your own. You have to have a comprehensive understanding of business law and its inner workings. Most businesses choose to hire a lawyer, so they can effectively and efficiently navigate the legal process. Also, moving forward, be sure to hire an outside collection service if you haven't done so already; they can offer another level of protection, deal directly with clients, and prevent future issues from going to litigation.

Let the business service professionals at Joseph, Mann & Creed handle your outside collection. Since 2001, they have been the accounting and bookkeeping specialists of choice for clients throughout Summit County, OH. Call (216) 831-5626 to request a quote for collection support, or visit them online to learn more about their services.