Assisting Our Clients as They Collect on Debts Owed by Other Businesses
To succeed, every company must carefully balance their costs with their revenue. However, when you look at your profit and loss statement, you may notice that some losses are not attributable to regular operational expenses, but instead to money owed to you by other companies. These extremely frustrating losses can exist for an unnecessarily long time.
Companies rely on invoices paid by individual customers and clients for the goods and services they provide. However, many companies have other businesses as clients as well. With 2.6 million small businesses throughout Texas, it is no surprise that many of them work together and rely on one another.
Other business owners should understand the importance of prompt payment of invoices, as the failure to pay can throw off your budget and operations. Unfortunately, many business owners try to avoid paying debts by making excuses or by simply ignoring the matter altogether.
While you are focused on managing your employees, overseeing operations, and reconciling your books, the last thing you want to worry about is pursuing collections from stubborn companies that you know are reluctant to pay. Keep your attention on your business while you let The Weisblatt Law Firm, LLC, handle your business-to-business debt collections.
A Unique Approach to B2B Collections
Many companies must work together with other companies, providing goods and services in exchange for payment. Whether you are a vendor, consultant, or provide other benefits for businesses, your clients must pay their invoices in a timely manner so you can keep your business on track. Unfortunately, as you probably know all too well, not all clients make payments as they should.
You likely have tactics to collect from consumers, and may feel tempted to use those same collection methods to collect B2B debts. However, several key differences separate consumer collections and B2B collections, and the same approach will often not work. Our law firm has unique strategies to collect business debts on behalf of our clients.
First, debts from other companies tend to range into greater dollar amounts than debts from your individual customers. While consumers may make single purchases, business clients may buy bulk products or ongoing services. For this reason, business to business debts can have a greater effect on your bottom line—and could even put your company’s success in jeopardy in the case of substantial clients. Not only are you not receiving the funds those businesses owe, but those clients have likely halted further orders since they know they are behind on payments. You are losing that future revenue as well.
Never delay in pursuing assistance with B2B collections, as it can help you get your budget back on track.
Businesses also may prove more stubborn and calculating when it comes to evading B2B debts, sometimes permanently. For example, a business owner may know the serious financial problems of the company and may suspect that a Chapter 7 bankruptcy is in the company’s future. In this case, a debtor may work to delay any payments while filing for bankruptcy and wrapping up operations. In this case, you will likely never see a dime after the business closes.
This situation is more common than you believe, as many owners choose to shut down the business instead of continuing to accrue debt.
Because B2B collections are unique, never simply hire a consumer collection agency to collect debts from business clients. Instead, contact Houston attorney Andrew Weisblatt, who understands how to approach B2B debt collection in an effective manner.
Helping You Preserve Relationships When Possible
When companies seek to collect debts from consumers, they likely have no desire to preserve a relationship with that consumer. Therefore, consumer collection departments and agencies often use harsh or even harassing tactics to seek payment. You want to take a different approach with your business clients, especially those who may once again put in substantial orders once their budgets are back on track.
At The Weisblatt Law Firm, we approach business to business collections with the preservation of relationships in mind. First, we never use harassing or unprofessional tactics when communicating with your business clients. We keep everything professional so as not to affect the image of your company at all—because we are representing you.
Many B2B collections begin with a demand letter. Sometimes, all it takes is a letter from an experienced business attorney to convince an owner that you are serious about collecting the debt. The company may want to avoid any further legal action, and may reach out regarding the debt after receiving the letter.
In some situations, a company will experience a temporary setback or loss of liquidity that prevents it from paying the debt right now. We may reach an agreement that the company can make lower payments or devise an installment plan in lieu of paying the debt in full all at once. Receiving any payment is preferable to receiving no payments, and the business may fulfill its obligations once it is in a better position to do so.
Finally, some B2B collection cases require taking legal action. You want an experienced litigator handling the case who knows how to file and pursue an effective lawsuit against the company.
Contact Our Houston B2B Debt Collection Attorney for Assistance Today
If you are a business owner and are entitled to payments from another company, the road to collecting that debt can prove especially difficult—especially if that debtor company knows how to evade payment. You should place your attention on running your business, not on continuously struggling with other businesses for payments. 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. Call (713) 352-0847 or contact us online to discuss how we can assist you today.