As a business owner, you certainly understand that being able to collect on your business debts is an essential part of your financial success. Whether you sell goods or services, you certainly didn’t go into business to give your products or time away for free.
Of course, you also want to collect the money you are owed as quickly as possible, especially when a debt is already past due. Unfortunately, there are things that you can do as a business owner that can delay your collection efforts and those of anyone you hire to collect a debt on your behalf. Three of the most common are detailed below.
Failing to Keep Proper Documentation
One of the most common things that creates an unnecessary delay in the collection of a business debt is failing to keep documentation that establishes the validity of the debt. Examples of the kinds of documents that can be useful include contracts,1 purchase orders, invoices, receipts, and any other document that establishes that a transaction occurred.
Trying to Collect Debts Yourself
If you are a relatively small business and operate on a personal level, you may be trying to collect business debts from people who consider you an acquaintance or even a friend in addition to a business contact. Attempts at collection may come across as suggestions rather than demands, and your debtors may (perhaps correctly) believe that you are not going to file a lawsuit or report them to a credit agency. When you have a third party collect your debts, it shows that you are serious and also allows you a layer of separation in the event that your debtor becomes upset that you are engaging in collection efforts.
Letting a Debt get Older
It is a common understanding among the debt collection community that the older a debt is, the harder it is to collect. In addition, if you wait long enough, you may just incentivize your debtor to simply try and let the statute of limitations2 run rather than address the debt head on.
Call a Houston Business Attorney Today to Schedule a Consultation
If you are having difficulty collecting on business-to-business debts that you are owed, you should call the Weisblatt Law Firm today. For a free phone consultation with one of our skilled business lawyers, call our office today at 713-714-4634 or send us an email through our online contact form.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio