I just read the fantastic stories over in the Small Claims Court thread and would like to hear people's thoughts on alternate routes to take with late/slow/not pay clients.
From my research, I have found that there are 3 main ways to collect:
1. Small claims court
2. Invoice Factoring
3. Collection Agency
Obviously, option #1 is ideal and nets the most return.
I'd like to hear any personal experiences people have had using #'s 2 or 3. I know that both incur a loss of 10% - 25% of your invoice, but what I would like to work out is: Is the loss of cash greater than the loss of time involved preparing your case to go to Small Claims Court?
I've called a few of these places to see how they work, and all of them make me feel a little uneasy. I'm wondering if it wouldn't be better to just wait it out, or to do the legwork and go to small claims court.
There is no template. Much of it should be done by listening to your gut. I recently had a wacko chic stiff me for 4 grand. She is too dang wacko for me to even mess with. My atty was wanting to sue her and I simply explained that I am not into paying 100 bucks to make 50. Life has taught me scrapping with big boys is easy stuff but to stay away from feisty fat chicks. I'll just youtube her ass with a fun voice over and call it even.
[Trey Gregory]"I'd like to hear any personal experiences people have had using #'s 2 or 3."
I actually had a collection agency call me, offering their services, at the very time that I was having trouble collecting from an out-of-town client. If the collection agency ever got any money, I never saw it.