Best Practices For Lawyers To Manage Receivables?

“The best practices are to get the money on time, but you can’t be late. The second thing is that they have to pay at least 85 percent of what they say they owe us. They must provide proof of payment or proof of why it won’t be paid within 30 days. We also require them to do a credit check and put up collateral if we deem it necessary for protection purposes.

How does your company protect itself against losses?

We will look into who the client is; whether he is an individual or corporate; how long he had his business before him; what type of industry he works in (it could be finance, construction, manufacturing, retail); and how many customers he has. Once we know all this information about our customers, we try not to take too much risk with them by putting big bets out there because eventually something bad might happen when one gets hurt worse than anticipated. It hurts everybody involved until someone goes under.”

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