If you are the owner of a small business, the realization that you are investing more time and energy in the collection of outstanding debts than operating your company can be a disturbing discovery. Although many business owners decide this misallocation of time justifies retaining outside assistance to improve loss recovery, the first instinct often is to contact a collection company rather than a commercial collection lawyer. This blog highlights some advantages of retaining an attorney.
Ability to Handle Larger Delinquent Accounts: While a collection agency might be fine when you are pursuing a relatively small amount, attorneys who specialize in debt collection offer distinct advantages if the amount in controversy justifies legal action. A collection company can send letters and engage in pre-litigation activity. However, the matter will have to be turned over to a business attorney if these preliminary steps do not generate results. The decision to retain a lawyer from the outset of the dispute can promote efficiency and effectiveness.
Inappropriate & Counter-Productive Aggressive Tactics: While our business attorneys work diligently to maximize recovery for our clients for the least cost, we also understand the importance of gauging the risk of adversarial tactics that might be ill-advised. Our law firm often has success in obtaining payment without the destruction of valuable and salvageable business relationships. Our goal is not merely obtaining a recovery from non-paying companies. Rather, a fundamental objective of our approach is to facilitate the continuity of an ongoing and health business association.
Avoiding Excessive Collection Expenses: Ironically, many businesses initially use a collection company to pursue recovery of late-paying or non-paying accounts as a cost-savings measure. The expense associated with collecting a business debt will depend on the complexity and scale of the collection effort. In many circumstances, the decision to retain an attorney to handle pre-litigation correspondence and other appropriate communications prior to initiating business litigation, if necessary, is both prudent and cost-effective. If you first pay a collection agency but must ultimately turn the case over to a collection attorney, this can be much more expensive than hiring an attorney at the commencement of the collection process.
Andrew Weisblatt of the Weisblatt Law Firm in Houston has been advising all types of businesses from large corporations to one-owner operations for many years. He understands the unique approach needed for each type of B2B debtor that you have to ensure the most successful collection results possible. Please do not hesitate to call a B2B collections attorney at 713-666-1981 today.