Unfortunately, in today’s commerce, businesses often withhold payment for goods or services. Sometimes the business just doesn’t have the funds to pay and sometimes the business has a legitimate complaint, but often the business simply withholds payment in an attempt to negotiate down the payment amount.
Not every business can afford to utilize such tactics. Knowing that small companies often don’t have the cash flow to float long periods of time without payment, large companies frequently take advantage. These Goliaths assume smaller companies would rather take a fraction of payment rather than await protracted litigation.
While there may be instances when taking a smaller offer is better than pursuing a lawsuit, certainly there is every reason to consult an attorney prior to taking such an offer. At the very least an attorney can advise you of your company’s rights and assist you in negotiating a larger settlement offer. At best, your attorney can help you understand the full range of remedies available to you and also map out a feasible plan to
(a) obtain full payment PLUS damages; and
(b) send a clear message to the industry that you and your company will not be taken advantage of.
As soon as the Goliaths in your field know that you’ll accept payment at a fraction on the dollar, you risk complete revenue erosion. How much revenue erosion can your margins afford? Are your competitors accepting pennies on the dollar? Often, a company’s comparative advantage is not its product, efficiencies or revenue model, but rather its ability to stare at oncoming headlights without blinking. You can put your competitors out of business by knowing how to enforce your contracts more effectively.
Rather than lay awake at night wondering if you should dilute your company’s worth, speak with a qualified law firm who can help you take on the Goliaths of the world. Call The Voss Law Firm today to discuss your company’s comprehensive plan for enforcing payment when payment is due. We offer confidential, unlimited, no obligation consultations to all clients.
