Burned by client. Go collection agency or lawsuit? A client burned my company for a significant amount of money (over $50k). A lawyer is about $2000 with the hope that eventually, if/when client is forced to sell the inventory, I'll collect something (she has about $1M stuck in a warehouse – she can't pay them either). Lawyer takes an additional 35% of whatever is collected. The product is a line of beauty products – branded for specific colleges – so not sure how sellable it would be.
My partner wants to try the collections agency route. No up front fee. They get ~25% of any collected funds. I've heard stories about how aggressive these companies – which is fine – but not sure how effective they are at actually collecting – esp at this level.
We had worked with this client with no issues for 1.5 years before this happened. My feeling is she simply mis managed the business and really does not have money.
So, try the collection agency route or go straight to a lawsuit?
My partner wants to try the collections agency route. No up front fee. They get ~25% of any collected funds. I've heard stories about how aggressive these companies – which is fine – but not sure how effective they are at actually collecting – esp at this level.
We had worked with this client with no issues for 1.5 years before this happened. My feeling is she simply mis managed the business and really does not have money.
So, try the collection agency route or go straight to a lawsuit?