Released: January 15, 2012

How entrepreneurs can cut costs of deadbeat clients

Source: Coeli Carr, CNBC.com

Cathy Alinovi, a veterinarian and owner of Hoofstock Vet Service in rural Pine Village, Ind., advises her clients to tend their animals' health needs as soon as the problem arises. When it comes to collecting fees, she follows that same advice. "The paperwork of any client who owes me more than $100 gets sent to my lawyer who deals with collections all day every day," said Alinovi. "Because I like to keep my fees reasonable, sometimes $100 can be a large part or even the entirety of a bill." On her invoices and receipts she may add a "reasonable attorney fee," as well as filing fees associated with going to court. "We add interest to the fees owed by the delinquent client, too," said Alinovi, who pays her lawyer one-third of what he collects. "He goes after every overdue amount, no matter how small."

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