In these trying economic times, ensuring the timely receipt of your account receivables is even more critical to keeping your business's cash flow steady. Although some clients you are familiar with may be late in making their payments due to their own economic difficulties, there may be some clients you deal with who just will not make payment, for whatever reason. There are some steps you can take to protect yourself should it become necessary to legally collect these accounts.

At the most basic level, every agreement you make to provide goods or services should be in writing. The written contract is the easiest type of agreement to enforce, both prior to, and during litigation. Quite simply, in the law's eyes, nothing beats a written contract signed by both parties to the contract.

However, even if you don't get a written contract for every good or service you provide, your agreement to provide goods or services can still be enforced. The key to enforcing an unwritten contract is having good documentation. Oral agreements can be enforced if the contents of the oral agreement can be shown. Writing down the terms of an oral agreement, while not rising to the level of a written contract, can help provide the facts necessary to support an oral agreement. Another good idea to consider when making an oral agreement is to follow it up with a written memorandum to the buyer indicating the terms of the oral agreement. In some instances, this can be as good as a written agreement, but at the least, it is indicative of an oral agreement.

If it becomes necessary, Lavelle Law, Ltd. can help you enforce your written or oral agreement. A strongly worded demand letter can sometimes get the attention of a recalcitrant payer and resolve the matter before litigation becomes necessary. Of course, if the size of the outstanding bill warrants it, Lavelle Law, Ltd. is experienced in collection actions and can file an appropriate lawsuit on your behalf.

Should you have any questions relating to this article please feel free to contact Lance C. Ziebell at lziebell@lavellelaw.com.