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\i am a wholesaler and am owed money from a retail store...i have copies of invoices and the deliveries signed for so can prove they owe me but they are incorporated , how do i collect from them, they don't answer calls or emails or letters..but are still in business...\/?
The answer depends mostly upon the terms listed on your contract as well as the laws of the State/ Province governing the transaction (usually your location as the seller, but again that can vary based upon the terms listed in the contract itself.)
There are many options available to you and the appeal of each will vary based upon the amount of the monies owed and the distance between you and the seller. In many cases you can file a lien (either mechanics lien or a UCC) against the business – but your ability to do that will have certain legal limitations. Once you have the lien you have an enhanced ability to effect payment.
Since they are not answering letters it would seem that the next step is legal action anyway. And a business that is not answering calls or letters is probably having cash flow issues and that means that you need to get in line quickly. If you are going to court, you need to have the judge rule that your property is NOT part of the company’s assets should they close or file bankruptcy. The reason is that you have not been properly paid for what they have (illegally) taken and you should not be asked to get in line with all their other creditors and take pennies on the dollar.
I’m sorry to hear that you have this problem and wish you the best of luck,
Michael
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Answers by Expert:
Michael Fay
Expertise
My focus and specialty is in credit, so that the risk of the debt itself is minimized. This means understanding it, predicting it, and helping to correct it. Having worked in contracts & credit, I have also worked with all of the related documents such as Guarantees (personal and corporate), and Security Agreements (aka UCC’s or “liens” – but I caution you in using those interchangeably).
Experience
I have a broad background with more than 15 years in the credit industry. Ten years with Dun and Bradstreet, first as a field reporter creating reports, then in customer service, finally I served as the credit manager designing risk models for many national and international customers through D&B’s Outsourcing function. Five years with another publicly traded firm where I created the credit department and then served as credit manager for North America. At both companies we used both business and consumer data.
You probably know that both business and personal credit have scores; what you might not know is how many different types of scores there are. I am familiar with and have used many different scores in each. Also be aware that each credit type (business & personal) is unique with different processes and different time frames.
I have served on the board of directors for companies in many states and still serve in some capacity in a few. I contribute to credit publications and work with the non-profit arm of the SBA called SCORE.
Organizations
ACA International * NACM * Credit Risk Managers * SCORE (SBA)- Counselors to America’s Small Business * Payment Card Industry Network * PaymentSource.com * D&B Alumni * Psi Chi, National Honor Society for Psychologists
Education/Credentials
BIS in Business and Psychology, University of Minnesota * MBA is still in progress (on-line)
Awards and Honors
State of Colorado - State finals in Accounting and Advanced Accounting. * D&B Leadership Winner (3 times) * D&B Leadership Finalist (3 times) *
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