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Business Debt/Business owes my business money

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Expert: - 7/14/2007


Question
I have a small, home based embroidery business.  I found a screen printing company that was willing to do my screen printing at a contract rate.  We started doing their embroidery jobs at a contract rate.  Well, over a 6 month period, they kept bringing me jobs to do and after I did them, they never paid us.  They said they were sending a check over and over again until they finally racked up a dept to us for $2,600.  Mind you - that is a discounted rate so they could mark it up and make money off of our work.  I am angry at myself for helping them out over and over again but I truly thought they would come through with the payment.  They are having a difficult time in their business but really, that isn't my problem.  Now I am having to deal with the loss of revenue and I have my own bills to pay.  I know I can take them to small claims court, but that won't guarantee payment.  To me, this is criminal because they knew that they were not going to pay us after the work was done.  Any great advice for me??

Answer
Debbie:
Thank you for your question. It is a regrettable situation, but one that occurs often when rendering services to individuals or businesses. You mentioned a contract rate for service; if you have a contract that you signed with the other party you may have some contractual legs to stand on. I would first advise that you seek legal counsel to ask that question. As well, you might consider hiring a collections attorney to approach the other party on your behalf. Most competent attorneys can yield swift results worthy of their fees. The second consideration might be to offer the other party a settlement, of a percentage off the balance of what is owed in exchange for a prompt lump sum payment. Lastly, you can pursue this in small claims and try to seek a judgment, but then still have the matter of collecting monies owed. Moreover, in the future you might consider putting your service agreements in writing as some measure of protection, and instill a strict policy for collecting a deposit and/or cash on delivery for larger jobs. Being flexible is in business decisions is important, but it really begins with valuing the service you provide and asking for payment when you do the job, this will ensure your business survives. If you found this answer helpful, please take a moment to rate it, so others may benefit from your experience and my advise.
Respectfully,
Christine Janklow

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Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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