Even when you are a business owner trying to collect from your customers, even on a bad check, there are legal issues that are involved with collecting your money. You need to be aware of them so you don't violate any laws.
You will have to learn and follow the Fair Debt Collection Practices Act (FDCPA) and any laws in your state. Also, to enforce any non-payments legally you will need a signed credit application, contract, agreement to protect yourself and legally collect your money.
Debt collection, when you do it for your own business or for someone else, is very serious business. Consumers are more aware of what you can and cannot do when collecting money, and so you must be aware as well.
The best way not to get paid is to break the law while trying to collect your money. This can cost you money, harm your reputation and cost you sales, and time.
Prevent this from happening to you, by following the guidelines and rules and having your credit policy in place.
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