Usually, debt collection for small businesses involves collecting money owed from customers and clients. These customers and clients generally fall into the following three categories:

Customers who will do whatever it takes to avoid paying. Customers who have several payments due at once and pay them sporadically. Customers that normally pay on time but are now unable to due to financial trouble.

When it comes to small business debt collection, keep this golden rule in mind: act quickly and stay determined. Acting quickly will ensure that you maintain your right to the money owed, and staying determined can ensure that you get paid in full. Here are some helpful tips for small business debt collection:

Send bills regularly. Don’t harass clients and customer: This is both a good customer service policy as well as a good legal policy. If your actions can be considered harassing, you may wind up losing a customer as well as facing legal repercussions. If you call your debtors, be sure not to leave more than one message per day, and never threaten a debtor. Write letters: The letters that you write to your customers and clients that owe money are called demand letters. You should be sure to send these in addition to making phone calls, and be sure to save copies of each letter you send. Small claims court: Small claims court is a great arena for small businesses, as these courts are designed to eliminate the high costs of attorneys and other court fees. If you do not want to go through a collection agency, you have the option of filing a lawsuit to get the money you’re owed. File a lawsuit: If small claims court is not an option for you, and the amount of money is too great to hand over 50% of it to a collection agency, you may have to file a lawsuit in order to recover the debt.

Collecting unpaid debts is essential to the success of any business. Texas attorney Andrew Weisblatt is a skilled Houston B2B business collections attorney who understands how to effectively collect from businesses that may be reluctant or unable to pay their outstanding financial obligations. To schedule an appointment with Mr. Weisblatt, call our Houston office today at 713-666-1981.

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Houston Business Contracts Attorney

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