If another company owes your company money, chances are you want to collect on that debt as soon as possible while still preserving the business relationship whenever possible. While some debt collectors are unnecessarily aggressive, the collection process does not have to involve harassment and such aggressive threats of litigation.1 In fact, there are many other methods of business-to-business (B2B) debt collection that may be used without dragging the other business owner into court.
The importance of a demand letter
The first step in a B2B collection attempt is generally to send a demand letter for voluntary payment of the debt. If carefully and persuasively composed, this letter can often be enough to incite payment without having to take further action. Even if you have already sent many invoices and letters on your own, having an official demand letter come from a B2B collections lawyer may be taken more seriously as it demonstrates you have taken steps toward potential litigation.
A demand letter aims to achieve the following:
If a business responds to a demand letter, an attorney can gather information even if they are unable to settle the debt at that time. Often, the idea of litigation is enough to incite the debtor to at least discuss payment options.
Discuss how a Houston B2B collections attorney can help you
Andrew Weisblatt is a qualified business litigation attorney in Houston who has extensive experience assisting companies with business-to-business debt collection. The collection strategy will be specifically tailored based on your particular situation, including the nature and amount of the debt, the business ties involved, and more. If you need assistance, please call a B2B collection lawyer at The Weisblatt Law Firm, LLC at 713-666-1981 as soon as possible.
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.