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.
Attorney Andrew Weisblatt and his team are ready to meet and discuss your business-to-business patient issues. If you need concrete, effective solutions to B2B payment issues, call (713) 666-1981 for a free consultation today.
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, purchase orders, invoices, receipts, and any other document that establishes that a transaction occurred.
To avoid issues with maintaining proper documentation, businesses are encouraged to devote the necessary human and financial resources to specifically manage business-to-business debts. Businesses may also consider looking outside their organizations to handle their B2B debts for efficiency’s sake.
Trying to Collect Debts Yourself
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.
Additionally, third-party debt collectors are trained and experienced in the art of business debt collection. They use proven tactics and methods to address the various challenging circumstances that arise in B2B debt collection cases.
The Weisblatt Law Firm helps businesses recoup payments from other businesses with effective and poignant legal guidance and representation.
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 to let the statute of limitations run rather than address the debt head on.
The only sure way to avoid aging debt is to take definitive and timely action when dealing with debt matters. Companies and organizations that owe money invest large amounts of resources into finding ways to avoid paying, avoid paying on time, or pay less.
If your business is owed money from other businesses, payment collection efforts will only be effective when your company aggressively pursues the debt. Aggressively pursuing debts from other businesses means enforcing payment deadlines and penalties for late payments.
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Get the Help You Need
Your revenue streams are important. If your company is owed money from other businesses that refuse to pay or that cause problems when payment is due, the Weisblatt Law Firm can potentially help you collect. We use creative solutions and strategies to resolve your payment problems.
Call (713) 666-1981 to set up a phone consultation, or contact us by email or through our online contact form. Learn how we can help.
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
