1. Check out your debtor before you advance credit. Pull a credit report, check them out on the Internet, call some of the references on their credit application. (YOU do have a credit application, don't you?)
2. If the debtor is a corporation or limited partnership, think about a guaranty from each of the individuals involved before you advance credit or loan money.
3. Get it in writing. Numerous collection disputes and litigation matters can be resolved simply by having a written agreement.
4. If the agreement isn't written, send written confirmation. A simple "Thank you" letter, fax or email containing the terms can be very important later if you aren't paid and a dispute arises.
5. If the transaction is between merchants, beware of UCC (Uniform Commercial Code) issues! Consult a good local attorney for detailed information.
6. Follow up promptly if you don't get your money. Don't threaten criminal prosecution against the debtor to collect: that's the same as the old classic "Pay or we break your leg". (It can be a crime called extortion.) You certainly don't want your debtor to have a good reason to sue you, do you?
7. Find out quickly why you're not receiving your money. On accounts receivable, is it a quality issue or lack of funds?
8. Don't wait. Every day you don't pursue your money, it lowers your chances you'll ever collect. Why let other creditors beat you to your money?
9. Don't rely on promises from the debtor. Their main goal is to delay you and not have to repay you.
10. Put your documentation together. Assemble the contract, invoices, emails, letters along with any copies of any checks received from the debtor.
11. You can hire a collection agency if the amount is small. If it's over $5,000.00 (US), consider collection attorneys instead. (Some people don't realize that you do NOT have to first go to collection agencies before you retain a collection attorney.)
12. Ask questions before you hire any professional. How many years have they been in business? Who are their other clients? Do they have a website which allows you to check them out? What are the fees involved to collect; what are the fees and costs if suit is required?
13. Beware of promises! Some debt collection agencies will promise you anything. Remember the old sayings:
"If it sounds too good to be true, it probably isn't", and
"You get what you pay for."
14. Make sure to obtain a written fee agreement before you retain any collection agency or collection lawyer. After all, it's your money. Please call our Client Services Department
toll free at (800) 653-5720 for more information. Ask questions. Get straight answers. 
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