While emotions can run high when your client or customer has outstanding invoices that are months old, it’s essential to be objective about the situation when deciding whether or not to pursue litigation. For businesses not familiar with this process (and be thankful if you haven’t had to go through it), this flowchart details the questions that need to be answered before deciding whether or not to take a step beyond collections and into litigation.
This flow chart is used in-house at our collection agency to guide our clients through the process of deciding whether or not to litigate against their customers with long past-due invoices. By turning the decision into a flow chart we’re able to calculate the likely proceeds from a lawsuit and compare that to our client’s cost to take the case to court, which gives us an objective way to determine if it’s worth their time or not. Using this chart we have succeeded in nearly every case we’ve taken to court for our clients.
Infographic Source: The Kaplan Group
