Collection of Debts – Why Contingency Fee Arrangements Work Best
As a business owner, there are always tons of areas of focus that need constant attention. Running the business, marketing, keeping the books, staffing, and lots more. One area that arguably the most important is getting paid for the work, goods, or services you provide. Without revenue, business go bankrupt. That’s why keeping a business’s accounts receivable low or non-existent is always a high goal for business owners. Invoicing and keeping on top of customers about timely payment is a delicate dance. However, when clients or customers fail to meet their payment obligations, businesses can find themselves in a dangerous bind. This is where Wakefield Law often steps in, offering a solution that eases the burden on business owners and captures the revenue that should have been paid after the goods or services were provided. We understand that the cost of legal representation can be a significant concern, which is why we proudly offer our services through a contingency fee arrangement.
Understanding Contingency Fee Arrangements:
At our law firm, we believe in providing accessible legal representation. Most small and medium-sized businesses have tight budgets that cannot bear a significant unexpected cost from lawyers. That’s why we offer the contingency fee arrangement. It’s a powerful tool that allows business owners to pursue outstanding accounts receivable without the worry of hefty hourly rates or upfront costs. Here's how it works:
1. Low Upfront Costs: With a contingency fee arrangement, our law firm takes on the financial risk. Business owners are not required to pay any upfront fees for our legal services. The only up-front cost is the establishment of a cost fund, which serves as a fund that our firm draws against to cover the costs of court filing fees and other necessary expenses such as private process service of court documents. These fees are always added to the amount we pursue, and any unused portions of the cost fund are returned to our clients upon the completion of legal services. Such manageable upfront cost enables businesses to pursue debt collection without adding immediate financial strain to their business operations.
2. No Hourly Rates: Unlike traditional legal services, our debt collection process does not operate on hourly rates. We understand the importance of efficient and cost-effective solutions. With a contingency fee arrangement, our focus is on results rather than billable hours, aligning our interests with the success of our clients. Whether we spend 10 or 100 hours on a matter, our maximum fee is the agreed-upon contingency rate of the collected funds. Our interests are truly aligned to get these matters resolved as quickly and efficiently as possible.
3. Performance-Driven Results: Our law firm only gets paid when you do. The contingency fee arrangement ties our success directly to the successful collection of debts on behalf of our clients. This aligns our interests with the interests of the business owners, ensuring a dedicated and results-oriented approach to debt collection.
4. Risk Mitigation: By choosing our law firm with a contingency fee arrangement, business owners transfer the financial risk of debt collection to us. If we are unable to recover the debt, our firm does not receive payment. This approach incentivizes our team to diligently work towards successful outcomes.
Navigating the complexities of debt collection can be overwhelming for business owners, but our law firm is here to simplify the process. Usually, all we need to open our files are the following documents and information:
1. The signed contract or agreement (if there is one)
2. A clear statement of account showing exactly what’s owed.
3. Any communication or detail about why the matter is unpaid. Did the party that owes the money share why it hasn’t been paid? Were any offers made? All of this helps us understand the landscape of the matter we are taking over for you.
Our commitment to a contingency fee arrangement ensures that our clients have access to exceptional legal representation without the burden of upfront costs or hourly rates. By choosing our firm, business owners can confidently pursue debt collection with the knowledge that our success is tied directly to theirs. Let us be your trusted partner in securing the financial well-being of your business. Give us a call to learn more! 703-771-9740.