Helping business collect on unpaid debts incurred by other businesses
Getting paid for providing others with goods or services is the reason that any business exists and, in many cases, the clients to whom the goods or services are being provided are themselves other businesses. As is the case with any business relationship, there are bound to be situations where it becomes difficult for one party to collect from another. The reason for nonpayment is often varied and could range from a dispute regarding the quality or goods provided or because of cash flow problems on the part of the indebted party.
It goes without saying that getting paid is an extremely important aspect of running a business. Fortunately, there are many ways that a Houston B2B business collections attorney can help secure payment from a delinquent debtor. In many cases, the use of an attorney as opposed to a debt collection1 agency can result in a quicker resolution to an outstanding debt and may avoid ruining an established and lucrative business relationship. As a result, anyone seeking to collect business debts from another business should explore his or her options with an attorney who has experience handling B2B collection matters.
Utilizing a variety of techniques to collect business debts
There are a number of methods and techniques that an attorney can employ in order to secure payment from a debtor, many of which have nothing to do with going to court.2 Some of the more commonly used are detailed below.
- Send a letter on your behalf – In some cases, the mere awareness that a creditor has retained legal representation provides sufficient motivation to induce a delinquent debtor to pay. After all, retaining an attorney is often the first step in preparing for litigation, and the costs of a lawsuit can often far outweigh simply paying the debt owed. As a result, a letter politely requesting payment on attorney or law firm letterhead can sometimes be enough to settle an unpaid business debt.
- Negotiate a settlement arrangement with the debtor – In some cases, businesses who owe debts are amenable to paying a debt off in a series of installments or on a discounted basis. An attorney can provide a buffer who is not personally invested in a situation, often allowing parties to come to a mutually agreeable settlement arrangement.
- File a lawsuit in order to obtain a judgment – When a debtor refuses to pay or negotiate, it may become necessary to file a lawsuit in order to obtain a judgment against the debtor. A judgment allows a creditor to engage in certain collection activity, such as placing liens on property or garnishing assets, which creditors without a valid judgment could not. It is important for anyone seeking to file a lawsuit to do so with the assistance of an experienced attorney.
Contact a Houston business to business collections lawyer today to retain legal representation
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 or send us an email through our online contact form here.