Collecting On Debts Protect yourself now so you can collect later.

Do you have collection protection? Your ability to collect onpast-due bills may depend on the language in your sales documents.Have an attorney-preferably one who specializes in creditors'rights-review your documents, including credit applications, salescontracts, invoices and statements, to be sure they conform to yourstate's regulations. First up: Make sure your invoices statewhen the payment is due.

If you offer terms, you must clearly state the interest rate andconditions under which interest accrues. In some states, customersmust agree to this in writing; find out if this applies to you.Also, stipulate that if there is a problem, the debtor isresponsible for paying any attorney and collection fees.

Do yourself a favor: Protect yourself now, and collections willbe much easier later.