Experiencing difficulty in obtaining payment from a customer or client at one point or another is a near certainty for nearly every business owner. This is true both for businesses that cater mainly to consumers and those that work primarily with other businesses. As providing goods or services in exchange for financial compensation is the fundamental idea behind conducting business, collecting on unpaid debts is extremely important. Many business owners believe that the most effective and cheapest solution to collecting on business debts is to hire a collection agency. The reality of B2B debt collection is that in many cases, hiring an attorney can result in the payment of past due debts more quickly and cheaply than a debt collection agency and in a way that can preserve valuable relationships. Some of the reasons for this are detailed below.

An attorney may be able to collect on a debt with a simple letter – While this may be true for collection agencies as well, the fact that a debtor receives a communication from an attorney often indicates to that party that their creditor is serious about the debt and is considering pursuing legal action. Consequently, many debtors will simply pay a past due bill upon receiving a letter on attorney letterhead without the need for any further action.

A lawyer can often salvage a business relationship – No one enjoys debt collection communications, especially when they take a threatening tone. In many cases, the form letters used by debt collection agencies are written in such a way as to potentially be offensive to the recipient, particularly if you have an ongoing business relationship. An attorney who does not handle these matters in bulk (as most collection agencies do) is often able to amicably resolve unpaid debts in a way that allows for the continuation of a lucrative relationship.

An attorney will take legal action on your behalf – If a collection agency is unable to collect, you will likely need to take legal action and take the matter to court,¹ in which case it is highly advisable to retain an attorney. By retaining a B2B debt collection² attorney from the start, you can ensure that you do not waste fees paid to a collection agency that ultimately is unable to collect on your behalf.

Contact a Houston B2B collections attorney today to schedule a free case evaluation

It is highly advisable for business owners who are experiencing difficulty collecting business debts to retain an attorney as soon as possible. Texas attorney Andrew Weisblatt has been practicing law since 1992 and provides solution-oriented representation and counsel to both individuals and business across a variety of areas of law. To schedule a consultation with Mr. Weisblatt, call our office today at 713-666-1981 or send us an email through our online contact form available here.

¹ http://www.txcourts.gov/

² http://www.consumer.ftc.gov/articles/0149-debt-collection