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In these tough economic times, nearly every business faces collection problems. When pursuing collection, keep the following in mind:

• Start early! The longer the delinquency exists, the harder it is to collect.
• Be sure to comply with the requirements of the fair debt collection laws. Failure to do so may result in penalties.
• Be sure that the interest rate in you contract, if any, complies with usury laws.
• Be sure to include an attorney's fees and costs provision in your contract. With it, you can assess attorney's fees and costs incurred in your collection efforts against the debtor.
• Document important events. For example, your acceptance of a partial payment should be documented as such, so that it is not later interpreted as an agreement to "settle" the debt for a lesser amount.
• Keep careful records. They can become evidence if you go to court.