As a small business owner how to i get an unpaid debt placed on a former client's credit history?

Question

within the last year I've launched my company.. so far so good but thats beyond the point. One of my first clients has failed to pay me. This is after the project and fees have been discussed, invoiced and delivered (delivery before payment is normal in my industry). So nearly a year later and a lot of ensuing run around i've finally had enough. Is there some way I have an avenue to place this as a collection on the client's credit report? FYI: I plan on pursuing legally also but i know that can take a while.

Answer 1

You're not going to be able to report this to the clients credit report unless you set up an account with the credit bureaus. I highly doubt it would be cost effective for you to do this with just one client.

So you really have two options here.

1) You can sell this off to a collection agency, and they will attempt to collect this debt and likely report it, but it's unlikely the collection agency will pay more than 30% of the balance owed.

2) You can sue in small claims court. If you win, the credit bureaus will most likely find the judgement and that would automatically get posted to the clients reports.

Answer 2

Ask about "Small claims court " in your jusridiction.

Many places have these  and the process is designed to NOT require a lawyer. You didnty specify  the amount owed, and small claims courts are just that, with an upper limit amount. A justice  of the peace runs the court and their "orders " are binding on the  other party, in law, if they find for you.

Ask at the local court house in your area.

Jim B. Toronto.

Answer 3

Call Trans Union for business accounts toll free  @ 1-866-922-2100

Answer 4

To the best of my knowledge you have to take the consumer to collections first. If you have not exhausted all other means of collections it is not considered a bad debt.

You need a paper trail. I suggest you contact a collections agency first and if that fails file a law suit.  Some collection agencies report directly to the credit bureaus so it's best to use one that has a good reputation.

Answer 5

You need to contact a collections agency to do it for you and go after them aggressively, or contact the major credit reporting agencies directly.  You will probably not get the total owed to you, as you'll need to pay fees for reporting or to the collections agency, but you'll get most of it.  I believe you're also in the right to charge late fees, but you might want to ask a lawyer to be sure.

Answer 6

You may approach it in 2 ways.

You can pay a fee to a collection agency to try and recoup your loss. This will more than likely get reported to the former client's credit bureau and quickly errode their credit standing.

Another option, is if you know where they bank (if they've ever paid you by cheque) you can go to their bank and have a hold for the amount owing placed on their account. This will wisk away from any existing cash and continue on any amounts they deposit.

Good luck!