The Personal Guarantee and how to enforce one.

Accounts Receivable Service » The Personal Guarantee and how to enforce one.

Did you know that you have the right to someone's assets if they have given you a personal guarantee? When an individual borrows money from you regardless of whether it be in the form of money or by you giving them an asset in return of the expectation of payment they have given you a personal guarantee. Also if a person has agreed to sign on as co signer with the person making the transaction they are also giving their personal guarantee. While it is regular practice to initially go after the assets of the obligor, the person who received the assets from you and initially gave you their personal guarantee, it is feasible and your're right to go after the assets of the co signer, in the event that the obligor is unable or unwilling to pay.

Now the tough question of how do you go after the assets of the obligor and co signor. You could attempt to do this yourself by going to the court house and acquiring a judgement. Even so with all of the red tape and rules, making any mistake that could potentially slow down that process is very easy and time consuming. Not to mention the price of hiring lawyers and accountants if required. So what is a quicker far more user friendly way to collect on this debt? Consider employing a national collection agency. Although there is still a price to making use of them as there is when you are trying to collect by your self, you get rid of virtually all of the time which you could not have added to your personal expenses. The approach is fairly simple and normally has two approaches: you can either have the national collection agency collect on your behalf or you can sell the debt to the national collection agency. The first approach you hold none of the risk of non collection, the collection agency does all of the function of collecting on the debt and keeps a percentage of collections. Although this method is typically less costly it also comes with the risk of non collection and slower payments depending on what the debt are related. The second option guarnatees results but is far more pricey. The great side of this is that you receive your money up front and therefor have money to invest into your business immediately. At times just the reality that your customers know that you will use a collection agency will be adequate to make them pay their bills on time. This could save you cash that you possibly did not even calculate in your analysis when deciding between a collection agency and doing it your self. If you are having trouble collecting on any debt you ought to contemplate making use of a national collection agency due to the fact that your time is much more valuable if it can be focused on your company. Don't forget it is not only the proper thing to do it is your correct to collect on your debts.

Looking for the BEST Accounts Receivable Service?

Fill out the form above right now to get quotes from up to 5 of the BEST Accounts Receivable Businesses in your area!