Final Demand LetterYour business depends on payments for goods and services from both consumers and from other business clients. Unfortunately, any business owner knows that not all clients make payments as they should. One mistake that business owners can make is treating business to business (B2B) debts just like they would treat a consumer debt. In reality, there are numerous challenges regarding B2B collections that should be uniquely addressed apart from traditional consumer accounts.

First, business to business debts are often for much higher amounts than consumer debts. This means that non-payment could have a much more substantial impact on the bottom line of your business and, for particularly large clients, could even hinder your company’s success. Collections for larger B2B debts should be taken very seriously and you should always seek assistance from a capable B2B collections attorney to ensure you receive the payment you deserve.

In addition, business debtors may be aware of more ways to permanently evade a debt than consumers, especially large debts. If an owner knows they are going out of business or filing for liquidation bankruptcy, [1] they may purposely delay on paying the debt while they quietly wrap up operations. Once the business is closed, you will have little to no chance of ever collecting payment. Consumer debts often have a much longer shelf life than business debts and, all too often, using traditional consumer debt collections methods is not effective for B2B collections because the debtor shuts down their business. For this reason, you should not trust your B2B collection efforts to a consumer collection agency.

Find out how an experienced Houston B2B collections attorney can assist you

If you are a business owner and are entitled to payments from another company, the road to collecting that debt can be difficult, especially if the debtor company is familiar with methods of evading payment. Your attention should be on running your business, not on continuously struggling with other businesses for payment. For this reason, you should allow a Houston business attorney to pursue payment of B2B debts on your behalf. Please do not hesitate to discuss your situation with The Weisblatt Law Firm, LLC today by calling 713-666-191 or using our online contact form.

 

[1] http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics

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