By Andrew R. Schwartz | Published August 15, 2021 | Posted in Business Law, Creditors | Tagged Tags: commercial debt collection, debt collection strategies, grace period | Comments Off on Effective Debt Collection Strategies for Small Businesses
Effective Debt Collection Strategies for Small Businesses
Client relationships are the lifeblood of your company. Employing well-structured billing procedures and an effective debt collection strategy can prevent interruptions to your cash flow while maintaining healthy client relationships. Billing procedures should include clear written communication of all credit advancement terms and repayment terms, including how often the company will bill the client, the Read More
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Minority Shareholders in Close Corporations May Have Fiduciary Duties
Corporate law provides shareholders protections. Officers and directors of a corporation owe shareholders a fiduciary duty — a legal obligation to refrain from putting their own interests ahead of the shareholders’. In a closely held corporation, majority shareholders usually hold or control the officer and director posts, which means they owe fiduciary duties to minority Read More
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Pending Illinois Legislation Would Further Limit Covenants Not to Compete
Illinois lawmakers are considering a measure to exempt more workers from restrictions on seeking new jobs after leaving an employer. The bill would add to the protections set out in the 2016 Illinois Freedom to Work Act, which bans covenants not to compete on certain workers. Both the IFWA and the proposed law follow a Read More
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Resolving Disputes Between Co-owners of a Small Company
Co-owners who had common goals when they started their business may find their paths veering in different directions as time passes. Whether it’s a clash in management styles or business plans, a dispute between co-owners of a small company can interfere with day-to-day operations and possibly imperil the company’s future. Swift and effective resolution of Read More
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Setting Aside Fraudulent Transfers to Collect Money You Are Due
When someone who owes you money frustrates your efforts to collect by suddenly becoming cash poor, they may have committed a fraudulent transfer. This occurs when a debtor moves non-exempt assets to another person or entity to shield them from legitimate creditors. Fortunately, a remedy exists. Illinois’ Uniform Fraudulent Transfer Act (IUFTA) lets creditors file Read More
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Federal Bill Would Provide Billions for Illinois Pension Crisis Relief
The Illinois pension crisis continues to be the worst in the country. According to a state financial report, Illinois pension funds currently have a shortfall of $137 billion, meaning that only 40 percent of pensions for teachers, state workers, judges, public university employees and local government employees are actually funded. A federal bill called the Read More
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Can the Coronavirus Pandemic Excuse Performance of Contractual Obligations?
COVID-19 has had a devastating impact on the U.S. economy, and no less so in the Chicago area. Social distancing guidelines and other restrictions have caused downscaling and other disruption that may leave businesses unable to perform their contractual obligations in whole or in part. When faced with a claimed breach of contract, it may Read More
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Jacobs v. Yellow Cab Affiliation, Inc.
2020 IL App (1st) 182462 THIRD DIVISION December 9, 2020 No. 1-18-2462 IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT MARC M. JACOBS and DEBORAH JACOBS, Plaintiffs-Appellants, v. YELLOW CAB AFFILIATION, INC., and ) 15 L 4995CORNELIUS C. EZEAGU Defendants, (American Country Insurance Company, Citation Respondent-Appellee) Appeal from the Circuit Court of Cook County Read More
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Common Issues in Breaking Up Recently Founded Companies
No one goes into a business venture expecting it to fail, but any number of reasons can cause a recently-founded company to break up. Work styles or personalities may conflict or the founders may discover that they have different visions. You might also find that communication is strained or your co-founder isn’t contributing as much Read More
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Literally Taking the Case
In their December 2020 Illinois Bar Journal article, attorneys Andrew R. Schwartz and John Cerney present the following scenario: Without first consulting its lawyers, your firm’s major client, Hapless Client, LLC, entered into a horrible one-sided contract with Sketchy Business, Inc. To make matters worse, Sketchy just filed a contract claim against Hapless to enforce that contract, Read More
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